A change or a split for SAA? And a settlement reached with Comair

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SAA is not splitting up, spokesperson for the airline, Tlali Tlali, said in response to media articles published on 18 February, claiming that the airline will be split into three business units as part of a restructuring plan.

Several media articles stated that SAA CEO, Vuyani Jarana said that South African Airways will be split into three business units domestic, regional and international as part of a restructuring plan.

However, Tlali Tlali told Fin24 that there are no plans to ‘split’ the airline and that Jarana was talking about the operating model of SAA and not about the structure of the business.

Fin24 quoted Tlali as saying: “We are not looking at a situation of breaking up the airline. SAA as an airline remains, but the manner in which it conducts business will be aimed at bringing in more business and create accountability in terms of operations.”

In other news, Comair on Friday announced that the South Gauteng High Court handed down judgement in respect of Comair’s case initiated against South African Airways SOC
Limited 14 years ago in respect of its anti-competitive travel agent incentive schemes.

In a statement, Comair said the Company is pleased to advise shareholders that it has entered into a full and final settlement agreement with SAA.

In terms of the Settlement Agreement, SAA will pay Comair a settlement amount of R1 108 040 000 plus interest. The Settlement Amount will be made in accordance with a payment schedule commencing on 28 February 2019 and terminating on 28 July 2022, or earlier should SAA elect to elect to make payments earlier than agreed.

In addition, SAA will pay Comair’s taxed legal costs incurred to date. Both Comair and SAA will withdraw the appeal and cross-appeal currently pending before the