Chinese PM hints at Sarajevo flights

GLOBAL AVIATION NEWS

SAA sold

South Africa agreed to sell a majority stake in the country’s grounded national carrier to a local jet-leasing company and private-equity firm, ridding the government of an entity that has long been a drain on state finances. A consortium comprised of Johannesburg-based Global Airways, which owns recently launched domestic airline Lift, and private-equity firm Harith General Partners will take a 51% shareholding in South African Airways (SAA), Public Enterprises Minister Pravin Gordhan said. The government will retain a minority stake. The grouping named Takatso will invest as much as 3.5 billion rand ($258 million) over the next three years, Lift co-founder, Gidon Novick, and Harith Chief Executive Officer, Tshepo Mahloele, said in an interview. “Government will have no further financial obligations to the company, outside of the existing liabilities that they will settle”, Novick said. He added, “Route networks we are still working on, and it will be a phased roll-out based on demand re-emerging post Covid”. The sale of SAA comes about six weeks after the airline emerged from lengthy bankruptcy proceedings, having reduced its workforce by almost 80% and cut liabilities to about 2.6 billion rand. The next challenge is to resume international flights, though South Africa remains cut off from much of the world due to pandemic travel restrictions. A longer-term goal is to list the carrier on a stock exchange, Gordhan said. In the meantime, the government will retain special voting rights to ensure the airline remains in the country, among other national priorities. The deal represents a triumph of sorts for Gordhan, who has argued for the revival of SAA with the help of private investors while others were calling for it to be liquidated. While SAA is now “solvent and liquid,” business-rescue practitioners said when handing over the aircraft, subsidiaries including low cost arm Mango and maintenance firm SAA Technical remain under financial strain and are in the process of being recapitalized. The Department of Public Enterprises and the new consortium will together assess the future of the divisions as part of the due diliegence process, Gordhan said.
Source: Bloomberg

Chinese PM hints at Sarajevo flights

NEWS FLASH

The Chinese Prime Minister, Li Keqiang, has said that talks over the establishment of flights between Beijing and Sarajevo are in full motion. The announcement came following talks between Mr Li and Bosnia and Herzegovina's Council of Ministers Chairman, Denis Zvizdić. at the sidelines of the CEEC - China 16+1 Summit in Sofia last week. The talks were attended by Bosnia’s Minister for Transport and Communications, Ismir Jusko. Mr Jusko noted last month that a Beijing - Belgrade - Sarajevo service is likely following talks with the Chinese Ambassador to Bosnia, Chen Bo. The Minister said the two sides are expected to sign a bilateral Air Service Agreement which would provide the legal framework for the establishment of flights. Ambassador Bo emphasised the tourism potential of Bosnia and noted that the number of visitors from China to the country increased between 130% and 140% in 2017 compared to the year before. The two countries abolished visa requirements for each others' nationals in late May of this year. Hainan Airlines currently maintains a two weekly service between Beijing and Belgrade via Prague.

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