South Africa Considering Plan to Merge Three State-Owned Airlines

Google+ Pinterest LinkedIn Tumblr +

Africa’s most developed economy, South Africa, is mulling over plans to merge three state-owned carriers into a single entity. The South African Government also plans on offering 25 percent of the merged entity to private investors, a cabinet member revealed to Reuters on Wednesday.

South African Airways, Mango, its low-cost subsidiary and SAA Express, which services smaller towns, are all struggling to remain profitable ventures following increased competition and rising operational costs, according to Reuters.

“I believe the answer to all of it lies in how we rationalize the three companies and how we bring in a 25 percent shareholder to help us with both management as well as on finances,” said Lynne Brown, the country’s Minister of Public Enterprises.


About Author

Leave A Reply