No need for additional government injections into SAA, says Takatso Consortium

No need for additional government injections into SAA, says Takatso Consortium

The company, which raised its hand for a majority stake in the airline, said it was committed to a strong partnership with the government and to seeing this transaction successfully concluded.

A South African Airways flight takes off as another is parked in a bay on the tarmac May 25, 2010 at Johannesburg OR Tambo International Airport in Johannesburg, South Africa. Photo: AFP

JOHANNESBURG – The Takatso Consortium has said it has all the resources to own 51% of South African Airways (SAA) amid fears from the National Treasury that it will have to provide the bulk of the funding for the partnership.

The company, which raised its hand for a majority stake in the airline, said it was committed to a strong partnership with the government and to seeing this transaction successfully concluded.

Takatso has in principle agreed to provide R3 billion over the next two years.

Its chairman, Tshepo Mahloele, said the Treasury’s concerns were a misunderstanding.

“There is no longer a need for injection into the new ASA in the future by the government of any kind. That’s why it took a little longer to make sure that at the Going forward, we have a structure that will allow the state to retain a stake in this business moving forward,” Mahloele said.