Ethiopian in talks with South African flag carrier on rescue

Ethiopian Airlines is among companies in talks with South Africa’s government about potentially offering support to the country’s insolvent state airline, according to people familiar with the matter. Africa’s biggest carrier is considering ways to help bankrupt South African Airways fly again after more than five months of dormancy, said the people, who asked not to be identified as the talks are private. Taking a stake in the carrier is one of the options under discussion, they said, though negotiations are ongoing and an agreement may not be reached. South Africa needs to raise more than 10b rand ($595m) to revive SAA, according to a rescue plan compiled by administrators and backed by both the state and labor groups. Yet Finance Minister Tito Mboweni has said the funds should come from private sources, committing only to help “mobilize” the required amount. SAA was placed under administrative protection in December, before the coronavirus crisis hit. Much of the funding is likely to come from private financial backers rather than Ethiopian, which would bring more operational expertise to the table, the people said. Ethiopian CEO Tewolde GebreMariam said talks have taken place in the past but were put on hold. Public Enterprises Minister Pravin Gordhan said Ethiopian was “one of many” interested parties the government is in talks with. <br/>