South African Airways sold to Global Airways and Harith
South African Airways is being sold to shake off the South African government’s bad habits.
Public Enterprises Minister, Pravin Gordhan, announced that South African Airways has decided to sell 51% of its shares to a Johannesburg-based jet leasing company called Global Airways and private equity firm, Harith General Partners. The government is only going to be left with a minority of the shares.
This decision was said to have been made with the sole aim of putting an end to the government’s mismanagement of the company’s resources that led to bankruptcy proceedings and caused the airway to reduce its workforce by 80%.
Following the announcement, South Africa’s local currency, Rand, gained 0.5% to 13.55 against the U.S dollar.
The CEO of Harith, Tshepo Mahloele said that 3.5 billion Rand which is $258 million, is to be invested in South African Airways within the space of three years.
South African Airways also stated that the next line of action for the company is to commence international flights seeing as most of South Africa is still observing the COVID-19 pandemic lockdown.
