Johannesburg - SA Airways (SAA) is not calling for equity partners in SAA
Technical (SAAT) "at this stage", the airline said on Friday.
SAA said its recently published Request for Bids was not a call
for equity partners but rather for suitable candidates to help the
airline to develop a strategy for future equity partnerships and to
restructure SAAT.
Due to the harsh impact of the recent recession on the airline
industry, the process had been slowed because of the lack of
interest in the international aircraft maintenance industry, SAA
said in a statement.
Since there was now evidence of some relief within markets as the
recession turned the corner, the airline was now in a position to
rejuvenate the project.
Because of the changes within the market caused by the
recession, SAA said it would need to begin the process on a clean
slate.
"This process begins with SAAT finding its true business
potential and to this end we are looking for the right advisors to
advise on opportunities and strategies to optimise SAAT as one of
our prime businesses."
It said the successful bidder would then advise on whether a
strategic equity partner would be necessary.
"Once we are advised of the opportunities to optimise the
business, and given that an equity partner may be deemed a
necessary part of this optimisation, we will then begin the search
for a suitable partner."
SAA said no decision had been made on the shareholding that
would be offered to an equity partner.
If such an offer was made in the future, the percentage stake
would ultimately be the decision of the SAA Group's representative
shareholder, the department of public enterprises.
"It is important for SAA to emphasise that the commencement of
this process should not under any circumstances be construed as an
initiative by SAA to privatise SAA as a group or as an airline."
During its restructuring programme which began in May 2007, the
airline announced it would turn its seven major business units into
standalone group subsidiaries which would operate as independent
profit centres.
The seven entities are SAA passenger airline, SAAT, SAA Voyager
Loyalty Programme, Airport Operations, Mango, SAA Cargo and South
African Travel Centre.
"The strategy envisaged bringing in strategic equity partners
into certain of these, including SAAT, as part of a business
optimisation process.
"The intention was for others to be retained as wholly owned
subsidiaries without the involvement of external equity partners,
included in which is the passenger airlines, SAA and Mango."
SAA said the process was a dynamic one that was subject to
constant re-evaluation under the changing conditions facing the
industry.
"Appropriate timelines for the completion of the process within
SAAT will be agreed on with the successful bidder," the airline
said.
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Sapa