A joint venture with the right airline could save SAA, says aviation expert
Aviation expert Guy Leitch says South African Airways (SAA) needs the right strategic partner to take over operational control of the struggling airline.
Leitch says SAA is on its deathbed after losing travel bookings from several private agencies who pulled their business away from the national carrier.
The loss of travel agent bookings is a fatal blow to the airline because it's almost dead.Guy Leitch, Editor - SA Flyer Magazine
In a statement on Sunday, Public Enterprises Minister Pravin Gordhan said SAA would undergo radical restructuring.
Leitch says "radical restructuring" is a meaningless term if there is no concrete plan of action.
They're not staying anything specific at this stage.Guy Leitch, Editor - SA Flyer Magazine
It's understood that Gordhan will meet with Finance Minister Tito Mboweni on Monday to devise a way forward for SAA.
Leitch explains that a joint venture or strategic partnership with another well-run airline could possibly help save SAA.
Currently, the law prohibits foreign businesses and investors from owning more than a total of 25% of any South African airline.
A South African airline has got to be 75% South African owned.Guy Leitch, Editor - SA Flyer Magazine
A joint venture between SAA and Ethiopian Airlines was previously proposed but has since been put on hold.
Emirates and Lufthansa are the two other airlines that have been mentioned in the past.
Listen to the discussion on Breakfast with Refilwe Moloto: