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The national flag carrier's interim chairman Derek Hanekom told local broadcaster eNCA that following the collapse of an earlier share deal, South Africa is seeking access to potential minority investors and capital markets to expand more rapidly. , said it is seeking loan financing for South African Airways.
Hanekom said the airline had to revise its expansion plans after the talks were abandoned and is now postponing international flights to London, Frankfurt and North America.
The South African government had planned to sell a 51% stake in SAA to the Takatso Group (comprising privately held Global Airways and private equity firm Harris General Partners) before the deal was halted last month. . The deal will give the airline a R3-billion cash injection as it emerges from a lengthy insolvency process following years of state bailouts.
“If we can raise capital from any source, we may be able to expand more quickly,” Hanekom said at eNCA. He added that the airline is currently experiencing slow but sustainable growth due to the lack of government subsidies.
Hanekom said SAA plans to increase its fleet from 13 to 21 aircraft within the next financial year. The airline added a number of routes to Africa, as well as some international routes to Sao Paulo and Perth, Australia.
Hanekom also said a search for permanent leadership for SAA and some of its divisions is underway.
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