CAPITAL CITY – The South African government is looking into ways to merge state-owned South African Airways (SAA), SA Express and Mango. The talks started last week and will be resumed this week, reports the responsible minister in local media.
According to minister Pravin Gordhan of Public Enterprises, the intended merger of the three companies should lead to synergies and cost savings. According to him, the route network and fleet must be rationalized.
Plans to merge South African state-owned airlines have been around for some time. One and a half years ago, consulting firms have already done research on this. According to Gordhan, the results of those studies must be re-examined.
SAA, which includes Mango, has been loss-making for years. SA Express, responsible for regional flights, has had to keep its fleet on the ground since last week after deficiencies in safety areas were identified. SAA hopes to fly as many passengers as possible to their destination.