Public Enterprises Minister, Pravin Gordhan, has announced a new strategic equity partner for government airline South African African with them owning 51% of the airline.
Gordhan announced on Friday that Takatso Consortium, which is comprised of Harith General Partners and aviation group Global Airways, would own 51% of the airline while the government would have 49% ownership.
This comes after the formerly state-owned airline was placed under business rescue back in 2019 due to mismanagement and financial maladministration.
During his media briefing, he said the objective has always been to restructure the airline to ensure that it is viable, agile, competitive and not reliant on the State's coffers:
This is a demonstration of South Africa's ability to develop an entirely home-grown solution to successfully relaunch SAA as a sustainable, competitive and transformed airline. Once again so that we understand this clearly, this airline is not dependent on the fiscus.
Gordhan further said that as part of SAA's relaunch, the finances of the operations of the airline be provided solely by the consortium, which in the initial stages, will be to the tune of R3 billion.
Minister Gordhan went on to say that the new public-private partnership will reposition the airline in the domestic market, the continent and beyond.
It will give us an opportunity to augment SAA with technical, financial, and operation expertise
Fin24 further reported that the CEO of the consortium, Gidon Novick, said that it is a privilege to be involved in a project of such magnitude and importance to the country. Novick is a former co-CEO of Comair and recently launched Global’s airline LIFT in South Africa.
Global Aviation has been doing business in SA for almost two decades, and also does charter flights.
It could be the best time ever to launch a sustainable and iconic new airline.
"Harith, as owners of Lanseria International Airport, has significant experience in the transport infrastructure and aviation sectors.We have deployed more than a billion dollars into a portfolio of critical infrastructure assets across the African continent that support regional economies," Harith co-founder and Consortium Chair Tshepo Mahloele said in a statement.