The Department of Public Enterprises (DPE) says the Competition Tribunal’s conditional approval of the Takatso Consortium’s intention to acquire 51% of South African Airways (SAA) is a significant step in making the state owned airline competitive and profitable.
The tribunal announced its decision on Tuesday “subject to conditions involving a moratorium on retrenchments and divestiture of the shareholding by the minority shareholders in the Takatso consortium”.
DPE Minister Pravin Gordhan has hailed the decision.
“The approval by the Competition Tribunal also sends a very strong message about the extent of the hard work that has gone into this transaction, considering that SAA was on the brink of liquidation. The steps we have taken will ensure that SAA is returned to profitability and sustainability,” the Minister said.
Gordhan highlighted that a well capacitated SAA has the capability of boosting the country’s economy.
“With this decision, the Competition Tribunal has affirmed our belief as government that a revitalised and a well-capitalised SAA presents the country with significant opportunities to boost economic connectivity and strategic reach that should benefit our economy and our people for years to come,” he said.
The Minister emphasised that the airline’s turnaround serves as a beacon for what state owned companies can achieve when given the right framework.
“I am confident that the repositioning of SAA sets a very good example of what can be achieved when the right financial and operational framework is given to state owned companies so they can fulfil their mandate to advance our economic transformation and development as a country.
“It is very gratifying to see that we are on the verge of having SAA finally infused with the requisite strategic vision, expertise, and capital by Takatso,” Gordhan said.