SA Express, SAA merger underway
The boards and executive leadership of both airlines have been tasked with identifying quick wins to stabilise the two State-owned airlines.
THE process to merge South African Express (SA Express) with South African Airways (SAA) is underway, Public Enterprises Minister Pravin Gordhan said on Wednesday.
In his update, Gordhan said the boards and executive leadership of both airlines have been tasked with identifying quick wins to stabilise the two State-owned airlines. These quick wins include technical, fuel and route rationalisation.
He said the SA Express board is expected to submit a bankable business model for commercial recovery and long-term sustainability.
Read also: SAA makes progress in turnaround plan
In May, the Civil Aviation Authority (CAA) announced the suspension of SA Express’s air operator’s certificate and the certificates of airworthiness (CoA) of nine of the 21 aircraft being operated by the airline.
Gordhan said the airline plans to build continuously on its flight schedule.
At a media briefing in May, Gordhan said government wanted to merge national carrier SAA with SA Express and Mango, as the three airlines fly to the same destinations.
The Minister told Parliament that SA Express continues to face liquidity and solvency challenges. While government has provided the airline with a government guarantee of R1.74 billion, the department says immediate recapitalisation is required.
Read also: SAA to operate single daily flights to London
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