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Skywise in final stages of investment deal - co-chair

Cape Town - Grounded low-cost airline Skywise Airlines is in the final stages of a shareholder deal with new investors, co-chair Tabassum Qadir told Fin24 on Wednesday.

She said the full details of the investment will be disclosed soon after fulfilling certain conditions.
 
"What we can be revealed is that the investors are promoters of new commercial aircraft," she said.
 
“The investor is coming in at a time when the African aerospace market has been dominated by Airbus and Boeing, with only limited competition in the regional jet market from Bombardier and Embraer."

READ: Transformation key to grow SA aviation - Skywise

In her view, aligning with an airline like Skywise would provide a good marketing window for the aircraft promoters to tap into the growing and vast African market.

"With the right-sized aircraft balanced with sound top level management, Skywise and other African carriers would be able to offer a better combination of capacity and frequency in core, as well as, low-to-mid-density markets," said Qadir.

"Rapidly evolving aviation product offerings and growth in emerging markets are broadening the geographical balance of airplane demand for which entering the commercial space will have to be done with crucial knowledge transfer and test programmes together with Skywise Airlines."

READ: Acsa hits back at Skywise allegations

She said Skywise is appointing a new management team as both she and her co-chair Javed Malik are stepping down.

“As aviators we ought to take much more challenging roles in the industry,” the co-chairs said in a statement. Malik is considering an offer as CEO at an African carrier, while Qadir said she is now at Pakistan International Airlines. As chief customer experience officer she is heading up the airline's recently launched premier service.

Airports Company SA (Acsa) suspended Skywise's flights on December 2 2015 due to unpaid airport charges for landing, take off, parking of aircraft and related service charges. At that time Skywise had already appealed to President Jacob Zuma, Deputy President Cyril Ramaphosa, Minister of Transport Dipuo Peters, Acsa and South African Airways for assistance. It also sought investors.

In April this year Skywise said six companies had expressed interest in a sizeable acquisition in Skywise. Of the six, four were foreign-based, while two were from South Africa, Skywise said at the time.

Skywise brand ambassador at the time, Ndileka Mandela, a granddaughter of Nelson Mandela, also expressed the wish that the authorities would resolve the issue of the grounding of Skywise flights.

Acsa has maintained all along that its decisions regarding Skywise were taken in its own best commercial interests, and to ensure the sustainability of the aviation industry.

ALSO READ: Suitors line up for stake in Skywise - owners

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