SAA, SAX and Mango merger to come before cabinet

A proposal for the consolidation of the three state-owned airlines – South African Airways, Mango and SA Express – is expected to be submitted to Cabinet next week, a government official confirmed to Travel & Meetings Buyer.

In May 2018, Public Enterprises Minister Pravin Gordhan confirmed that the merger was on government’s agenda as it would allow for routes to be rationalised and for greater cost saving.

According to Eyewitness News (EWN), legislators have been told that the proposal is set to go before Cabinet for approval next week. That was the message from Edwin Besa, a senior official in the Department of Public Enterprises, to Parliament’s select committee on public enterprises.

“At the moment, as we speak, the consolidation [plan] is being presented at the economic cluster, and next week it will be submitted to Cabinet for a decision. Thereafter, we will be able to decide on how much additional funding the airline will need, based on how the consolidation will be carried out,” EWN reported Besa as saying.