Cape Town - South African Airways is set to oppose the
planned takeover of liquidated budget airline 1time by London-based Fastjet
Airlines due to laws that ban majority ownership of local carriers, a report
SAA referred to the legislation that said "airlines
operating domestically within South Africa are owned by companies with a
minimum 75% South African shareholding," SAA spokesperson Tlali Tlai told
Fastjet, which operates mainly in Africa, signed an option
agreement with 1time to buy all issued share capital for R1.
The option agreement will see London-based Fastjet join the
South African aviation market with an eye to operating domestic and regional
At the time Fastjet CEO Ed Winter said: "I am pleased we
have managed to reach a provisional agreement with all parties to buy 1time.”
Before it went under, 1time was the second-largest low-cost
airline in South Africa.
Local carriers Comair, the parent company of Kulula and
state-owned Mango both of which compete in the budget airline arena, also
lodged objections to the takeover with the Air Services Licensing Council, the
1time filed for liquidation in November 2012.
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