SAA is looking for minority shareholders and loans

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South Africa is looking for potential minority investors and access to capital markets and loan financing for South African Airways for faster expansion, following the collapse of a previous share deal, the national carrier’s interim chairman Derek Hanekom said on local broadcaster eNCA.

The airline had to revise its expansion plans after the talks were scrapped and has now postponed the opening of more international routes to London, Frankfurt and North America, Hanekom said.

The South African government had planned to sell 51% of SAA to the Takatso group – made up of closely linked Global Airways and private equity firm Harith General Partners – before the deal was called off last month. The transaction is said to have resulted in a cash injection of R3 billion for the airline, which previously emerged from protracted bankruptcy proceedings following years of state bailouts.

“If we can get capital from any source, maybe we can expand faster,” Hanekom told eNCA. The airline is currently growing slowly but sustainably, without government subsidies, he added.

Within the next financial year, SAA will expand its fleet from 13 to 21 aircraft, Hanekom said. The airline has added a number of routes to Africa, as well as some international routes to Sao Paulo and Perth, Australia, he said.

The search for permanent executives for SAA and some of its units is ongoing, Hanekom also said.