South Africa is working on preserving South African Airways by seeking to partner the carrier with Ethiopia Airlines.
The reports confirmed it that the insolvent national carrier went into administration in December and now needs more than R10bn to restart operations. According to a rpeort made available by the SAA’s business rescuers. The airline has not made a profit since 2011 and has been surviving on government bailouts.
“There is inherent value in an existing airline which cannot be easily replicated in a new replacement carrier,” Nick Fadugba, the CEO of African Aviation and the author of the study, stated. “After a thorough analysis, our preferred strategic equity partner for SAA is Ethiopian Airlines.”
Ethiopian Airlines shares a similar “pan-African vision” to SAA and is Africa’s strongest carrier, Fadugba stated.
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