Tuesday, January 31, 2023
News Media Empire
  • About Us
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Home
  • World News
  • Politics
  • Business & Economy
  • Money
  • Science & Tech
  • Opinion
  • Lifestyle
  • Health
  • Sports
  • Entertainment
  • Crypto
No Result
View All Result
  • Home
  • World News
  • Politics
  • Business & Economy
  • Money
  • Science & Tech
  • Opinion
  • Lifestyle
  • Health
  • Sports
  • Entertainment
  • Crypto
No Result
View All Result
News Media Empire
No Result
View All Result
Home Business & Economy

‘The days of bailouts are gone’ – SAA to start flying ahead of Takatso deal | Fin24

September 22, 2021
in Business & Economy
0
SAA '2.0' will take to the skies on Thursday.
0
SHARES
Share on FacebookShare on TwitterShare on RedditShare on Whatsapp



SAA ‘2.0’ will take to the skies on Thursday.

  • Last year National Treasury allocated R10.5 billion to SAA.
  • The airline has begun discussions with Takatso Consortium on its acquisition of 51% of the airline.
  • SAA will make its first flight in more than a year on Thursday 23 September.

Although South African Airways (SAA) is yet to conclude its transaction agreement with Takatso Consortium, Department of Public Enterprises (DPE) director-general Kgathatso Tlhakudi says it’s important that the airline starts flying and generates cash.

“You cannot have this metal and these people sitting around, they burn cash, sitting on the ground. So, we want them to be operating, converting that cash into new cash flows. The sooner they get started at SAA, the better,” said Tlhakudi.

Tlhakudi was speaking on the sidelines of the launch of SAA on Wednesday. The airline will officially make its maiden flight on Thursday, having battled to return after halting its flights at the beginning of South Africa’s Covid-19 lockdown in March 2020.

Last year, National Treasury allocated R10.5 billion to SAA and the then ailing airline has since begun discussions with Takatso Consortium on its acquisition of 51% of the airline. The consortium is made up of infrastructure investment firm Harith and LIFT airline owner, Global Aviation, and is expected to inject R3 billion into the airline over the next three years.

On Tuesday, Takatso said it was not involved in SAA’s management, funding or relaunch plans. But the consortium’s CEO Gidon Novick said the due diligence process of the acquisition is “substantially complete”.

Tlhakudi reiterated Novick’s statement, saying that the “complex” share sale and purchase agreement was almost complete, which means that Takatso has not taken the reins yet.

“We are impatient, of course, but we’ve had to allow time to ensure that it is done properly,” he said. 

Tlhakudi further explained that although it statement sounded harsh, Takatso was simply clarifying that it is “not in the cockpit yet”.

“The agreements are now what’s standing between us and them taking over the business, so we must have those finalised so that they reflect our intentions,” he said. 

‘Days of bailouts are gone’

The director-general said he expects the deal to be wrapped up before the end of 2021.

“The message is very clear … the days of bailouts are gone,” he said.

Tlhakudi explained that it is for this reason SAA is being put into the hands of an owner with the commercial and technical skills, who will also carry the risk.

As for why the state was so invested in keeping the airline going, Tlhakudi said it to ensure that air travel costs never become unaffordable for South Africans. 

Overall, he said the department had made good progress in turning around the country’s parastatals, citing SAA’s return as an example. The department is in the process of ensuring that rail, ports and pipeline company Transnet and arms manufacturer Denel are back in shape.

The airline’s interim chairperson, John Lamola, was also at the launch. He described SAA as a “phoenix rising” and said that he was approaching the celebration of its first flight with a sober sense of awareness. 

The embattled airline’s business rescue ended at the end of April, more than a year after it began in December 2019. But the carrier is putting its chequered past behind it, with Lamola saying it would focus on making appointments based on merit and its leadership will not change from one minister to another.



Source link

Get Free Advertise Coin
Previous Post

Young man and pregnant partner die suddenly within days of each other

Next Post

Red Wings’ Tyler Bertuzzi declines COVID-19 vaccine, can’t play in Canada – National | Globalnews.ca

Related Posts

EU crafts response to US green tech subsidies | Business
Business & Economy

EU crafts response to US green tech subsidies | Business

January 31, 2023
Generally a rise in interest rates is good for savers (you’ll earn more interest on your savings) and bad for borrowers (you’ll have to pay more on your loan).
Business & Economy

MONEY CLINIC | How do interest rate hikes affect my finances? | Business

January 31, 2023
Hotels recover revenue, but staff shortages linger
Business & Economy

Hotels recover revenue, but staff shortages linger

January 30, 2023
Next Post
Red Wings’ Tyler Bertuzzi declines COVID-19 vaccine, can’t play in Canada - National | Globalnews.ca

Red Wings’ Tyler Bertuzzi declines COVID-19 vaccine, can’t play in Canada - National | Globalnews.ca

‘Don’t give up’: Trump rallies GOP to oppose raising the debt limit

‘Don’t give up’: Trump rallies GOP to oppose raising the debt limit

Robinhood to Debut Crypto Wallets Next Month, Here Are the Things You Can Do With it

Robinhood to Debut Crypto Wallets Next Month, Here Are the Things You Can Do With it

Discussion about this post

AdvertiseCoin ADCO Get Now Free
News Media Empire

Newsmediaempire is an online news source that provides the latest news and other information about everything that you must need to know. It publishes news related to various fields like world, business, sports, politics, tech, health, lifestyle, and other different exclusive stories.

Let's connect!

Categories

  • Business & Economy
  • Crypto
  • Entertainment
  • Health
  • Lifestyle
  • Money
  • Opinion
  • Politics
  • Science & Tech
  • Sports
  • World News

Recent News

  • EU crafts response to US green tech subsidies | Business January 31, 2023
  • Crypto Market Crash Live Updates: XRP Price Slides By 5%, Bitcoin Down by 4% January 31, 2023
  • Bavuma says resting Magala, Rabada for 2nd England ODI was part of series plan | Sport January 31, 2023

Join Our Newsletter!

    • About Us
    • Contact
    • Privacy Policy
    • Terms & Conditions

    newsmediaempire.com © 2021 All rights reserved.

    No Result
    View All Result
    • About Us
    • Contact
    • Home 1
    • Home 2
    • Home 3
    • Privacy Policy
    • Random
    • Sample Page
    • Terms & Conditions

    newsmediaempire.com © 2021 All rights reserved.

    en English
    ar Arabicbg Bulgarianzh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.