Harare — The Competitors Tribunal has accepted Takatso Aviation’s proposed acquisition of a 51% holding in South African Airways (SAA), however with restrictions, together with a ban on layoffs and the sale of minority shareholders’ shares, EWN reports.
The selection has put Takatso and the division on monitor to finish the regulatory framework required to pump U.S.$169 million (R3 billion) into the struggling airline.
DPE and the Takatso Consortium inked a purchase order deal in February 2022, which sparked controversy. Takatso’s funding, based on DPE, will support SAA in rising its fleet and route community.
SAA was last profitable in 2011 and recorded cumulative monetary losses of U.S.$122 million between 2012 and 2017. From 2008 to 2020, the airline obtained taxpayer-funded bailouts of U.S.$224 million. The nationwide service has been the albatross across the necks of the South African authorities and the nation’s taxpayers for many years.
The mismanagement on the airline through the years has seen a number of CEO and chairperson modifications after the rot in its monetary affairs had been uncovered.
The airline’s bailouts from the federal government since 1994, was largely used to pay its collectors.