SAA will actively start looking for an equity partner from within the aviation industry to help turn around the embattled airline, CEO Vuyani Jarana was quoted as saying in Business Day.
“You don’t just want a pure investor such as private equity,” said Jarana. “With a strong equity partner that has operations elsewhere, you are able to leverage from each other’s capabilities.”
One of SAA’s main strengths was a 55% share of the South African market, which also includes contributions from low-cost carrier Mango and SA Express, Jarana said. A merger of the three airlines would help to secure a strong partner, he said, while also contributing to the cost-cutting plan.
“SA Express is still being run as a separate entity by the government with a separate board,” Jarana said. “It has a big strategic role to play.”
The CEO will spend the early months of his tenure reviewing all the company’s costs, including routes, aircraft leases and supply contracts. That process should be finalised by February and would be influenced solely by commercial considerations and not political pressure, he was quoted as saying.
Working alongside Jarana will be new chief restructuring officer Peter Davies, whose credentials include a turnaround of Air Malta and the start-up of Caribbean Airlines.
“If we want to seriously compete against other big players in Africa and Middle Eastern carriers, we need to refresh the product,” Jarana said.