South Africa, the southernmost tip of the world with a high human development index (70.3) and the most industrialized nation in the African continent, had been mulling an option to bring in an independent board for its ailing flagship carrier, while the shareholders’ structure would likely to be identical to the partially Government-owned telecoms firm Telkom, S.
Africa’s Public Enterprises Minister Pravin Gordhan said in an interview with a local news channel eNCA on Sunday. In point of fact, latest remarks from the S. Africa’s Public Enterprises Minister Gordhan came forth as the debt-strapped SAA (South African Airways), which had been in a bankruptcy proceeding since December last year, had secured its creditors’ approval over an emergency rescue plan last week that involved a sweeping downsizing of its fleet alongside shrugging off of thousands of jobs, while the SAA had also received a commitment from the S.
African Government of over 10 billion S. African Rand or $600 million.
SAA to follow Telkom’s footprint, new SAA cannot be run by a bunch of amateurs, says Gordhan
Meanwhile, adding that a sweeping overhaul of South Africa’s flagship carrier would likely to follow the corporate infrastructure of Telkom, the fiscally embattled nation’s Public Enterprises Minister Pravin Gordhan said to the local news channel eNCA on Sunday, “Telkom is an interesting model that we could actually look at as we go forward.
The new SAA cannot be run by a bunch of amateurs”. However, Gordhan had declined to mention whether the revamped SAA would be enlisted as a publicly traded company. Aside from that, the partially state-owned Telkom SA, shareholder structure of which would likely to be implemented on the reformed South African Airways, has been one of the top three telecom services providers in the second-largest economy of Africa in terms of size and is not bound by Government guidelines.
Nonetheless, adding that the S. African Government had still been trying to figure out the sources of 10 billion S. African rand required for the proposed rescue plan to succeed, Gordhan , “Now where it comes from, what form it comes in is something is still being worked on. ”