South Africa: Competition Tribunal Approves Takatso Aviation's Majority Stake In National Carrier

A South African Airways Airbus (file photo).
26 July 2023

Harare — The Competition Tribunal has accepted Takatso Aviation's proposed acquisition of a 51% holding in South African Airways (SAA), but with restrictions, including a ban on layoffs and the sale of minority shareholders' shares, EWN reports.

The choice has put Takatso and the department on track to complete the regulatory framework required to pump U.S.$169 million (R3 billion) into the struggling airline.

DPE and the Takatso Consortium inked a purchase deal in February 2022, which sparked controversy. Takatso's investment, according to DPE, will aid SAA in growing its fleet and route network.

SAA was last profitable in 2011 and recorded cumulative financial losses of U.S.$122 million between 2012 and 2017. From 2008 to 2020, the airline received taxpayer-funded bailouts of U.S.$224 million. The national carrier has been the albatross around the necks of the South African government and the country's taxpayers for decades.

The mismanagement at the airline over the years has seen several CEO and chairperson changes after the rot in its financial affairs were exposed.

The airline's bailouts from the government since 1994, was largely used to pay its creditors.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.