South Africa: Government to Merge Three Private Owned Airlines

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Image: soyh Africa Travel online

South Africa’s government has taken into consideration the idea of merging three state owned airlines into one entity. The government plans to give a 25 percent stake of the holding company to a private equity partner, according to a cabinet Minister on Wednesday.

Mango and SAA Express are private owned airline companies that have been running on loss and have been struggling to remain profitable amid increased competition and rising operational costs.

“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 management as well as on finances,” Public Enterprises Minister Lynne Brown told a parliamentary committee.