South African Airways faces regulatory scrutiny over sale plan

South African Airways officials will be summoned to a meeting with regulators next month to disclose details about talks with potential equity partners and give assurances that any deal won’t violate foreign-ownership laws. Under the Air Services Licensing Act of 1990, airlines must be at least three-quarters owned by South Africans to operate a domestic service. That would prevent international operators from buying more than a 25% stake from the govt, unless the rules are changed. Finance minister Tito Mboweni said last month the govt is talking with potential investors in SAA, which is technically insolvent and reliant on bailouts and other forms of state support to survive. <br/>