SAA Halts Route Expansion Plans As Chair Derek Hanekom Seeks Investors

SAA Halts Route Expansion Plans As Chair Derek Hanekom Seeks Investors

  • South African Airways (SAA) Chairperson Derek Hanekom has halted plans to expand routes as the airline seeks investors after the Takatso deal collapsed
  • The decision to suspend route expansion follows the unsuccessful sale of a 51% stake to Takatso Consortium
  • The airline was in business rescue and has suffered for years due to mismanagement and corruption

Trisha Pillay is a Briefly News current affairs journalist in Johannesburg. With degrees in journalism and international politics, she delved into the intricacies of political landscapes at The Citizen newspaper, African News Network and Newzroom Afrika. Pillay has also completed a training course from Google News Initiative.

SAA to halt future expansion plans.
SAA chairperson Derek Hanekom is looking for investors to rescue South Africa's airline. Images: SAA
Source: Twitter

JOHANNESBURG - South African Airways (SAA) Chairperson Derek Hanekom has announced the suspension of plans to expand routes.

SAA cancels expansion plans

According to eNCA, the airline continues its quest for potential investors following the collapse of the Takatso deal.

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Speaking to the channel, Hanekom emphasised the need for cautious financial strategies, indicating that the airline will turn to capital markets for funding but will exercise caution in route expansion decisions.

The decision to halt route expansion comes in the wake of the failed sale of a 51% stake in SAA to the Takatso Consortium, a deal that was proposed but did not materialise.

Public Enterprises Minister Pravin Gordhan disclosed in March that both parties agreed to scrap the deal, marking a setback in SAA's restructuring efforts.

Speaking about the airline's financial status, Hanekom noted that SAA has reached a point of breaking even.

The Auditor General (AG) is expected to release the airline's financial results by the end of May, shedding light on SAA's current financial status.

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Netizens weigh in

People are not surprised by the SAA and the outcome. Many say most state-owned entities are struggling to stay afloat.

Here are some of the reactions:

@Leonard Phekani said:

"Where is he campaigning for ANC, this is no surprise."

@Evans Yolanda commented:

"I can't wait for the elections."

@Martin Troskie shared:

" SAA has no chance."

@Sarah Culley expressed:

"Some people will never wake up and smell the coffee of the reality."

@Paul van den Berg said:

"Just another comrade and cadre from the cANCer, because of that connections, a very rich man today."

South African Airways relaunch leaves netizens with questions

In a related story, Briefly News reported about South African Airways, which was set to relaunch on 26 October, much to the disappointment of South Africans.

The state-owned enterprise announced its direct flight from Johannesburg and Cape Town to São Paulo, Brazil. Netizens wanted to know how much the relaunch would cost and slammed the lack of transparency.

Source: Briefly News

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