SAA restructuring team sifts through unsolicited investor approaches

More than 10 unsolicited approaches expressing interest in South African Airways have been received from potential investors and partners. The South African government’s department of public enterprises states that the approaches concern SAA and its subsidiaries Mango Airlines, SAA Technical, and catering arm Air Chefs. “[We have] been busy assessing the interests from several unsolicited local and international strategic equity partners,” the department says. SAA underwent a prolonged business rescue programme which resulted in a strategic plan for the company being approved by creditors in mid-July. The department claims it has been working “around the clock” to finalise the rescue process after stating, earlier in August, that all the conditions for implementation had been met. It says it believes investments in the airline and its subsidiaries will “help support key economic sectors, including tourism” and “solidify” the country as a gateway to international markets. SAA is being overhauled in four phases, it adds. Some 1,000 personnel will be retained for the restructured company, with another 1,000 placed on a social plan for integration as the airline expands. The remaining staff will be granted a voluntary severance package. A smaller board – with members including a chief risk officer, chief operating officer, and chief information officer – is being appointed.<br/>