(Ecofin Agency) - South African Airways may soon attract new private partners for its restructuring plan, the country’s President Cyril Ramaphosa said on October 14, speaking at the Financial Times Africa Summit, in London.
“We have put on record we are open to the participation of the private sector. We are talking to a few interested parties when it comes to SAA, for instance,” he said. The President provided no clue on the identity of the potential investors but earlier this month, Ethiopian Airlines expressed its intention to invest in the South African company, if it has the opportunity. However, Ethiopian Airlines is a 100% public company.
South African Airways has not made any profits since 2011 and has constantly shelved the publication of its financial reports due to major challenges. The airline now solely relies on fund injection from a government that is also facing significant constraints. In a recent presentation to the South African Parliament, the company reported having a debt of 12.5 billion Rand ($868 million). A liability that any potential partner should consider before committing to it.