The Department of Public Enterprises has completed a study on the merger of South Africa’s state-owned airlines and presented this to parliment on Wednesday, 11 September. The study found that consolidation of the three airlines would be financially beneficial.
According to Business Tech, ‘the document which supports the consolidation is currently being reviewed by the government’s economic cluster and will soon head to cabinet for consideration.’
Siza Mzimela, Interim CEO of SA Express, expressed support for the integration of the airlines, but said that the way in which the merger is structured will be of critical importance.
The push to merge the airlines comes after SA Express was forced to ground all its flights at the end of August due to lack of funds and National Treasury approved a R300-million bailout for the struggling airline.
Image: Meraj Chhaya
