Photo: Flickr
Photo: Flickr
An efficient, modern and customer-centric national carrier is set to emerge from the smouldering ashes of South African Airways (SAA), the Department of Public Enterprises (DPE) said on Monday 24 August after announcing that they have received a host of investor interest in the project.
The department is currently weighing over “unsolicited interest” from both local and international investors, who see the revival of the airline as per the Business Rescue Plan (BRP) published in June as an attractive opportunity to get involved in South Africa’s vision for air travel in the future.
SAA replacement airline host of investor interest – DPE
In a statement released on Monday morning, the DPE said that the proposals coming their way offer a range of appealing components, including “technical, financial, and operational expertise”.
“As the sole shareholder on behalf of government, the DPE had been busy assessing the interests from the several unsolicited local and international Strategic Equity Partners (SEPs) as part of the implementation of the business rescue plan, which was published at the end of June 2020,” they said.
“The DPE believes that such investments in the airline and its subsidiaries will help support key economic sectors, including tourism, and solidify South Africa as an African gateway to international markets.”
With SAA having suffered a multitude of managerial and financial setbacks as its ability to efficiently sustain itself steadily decayed over the last decade, the DPE hope that the emerging airline will benefit from some of the potential investment option’s prowess in these departments.
“Such partnerships will also improve scale and scope and ensure continuity of value creation to the South African economy and long-term sustainability of the aviation industry managed by competent, competitive and skilled personnel who possess strategic and technical capabilities, which are critical to the success of the new carrier,” they said.
New airline to be ‘efficient and modern’
With these aspired outcomes in mind, the DBE said that they want to see an airline replace SAA’s current model that is capable of significantly elevating South Africa’s ability to connect itself to the rest of the world.
They cited the following targets as their focus in terms of selecting the right investors from the host of proposals they have received:
- An efficient and modern aircraft fleet with hybrid density options acquired at competitive rates resulting in cost efficiency;
- An offering with the right flight routes, at the right times and at competitive prices.
- A network structure that allows for connectivity at hubs, whilst maintaining elevated aircraft utilisation;
- Connecting Africa to world economic hubs whilst maintaining diplomatic connectivity;
- A right-sized and motivated workforce;
- A customer-centric airline designed to be lean, technology savvy, digitally active and agile to service all market segments;
- Appointment of smaller, effective, reinforced and empowered board of directors;
- A centralised, single commercial team leading fleet, network, pricing, revenue management, product, services, loyalty programme, sales, and marketing for the new airline.
