GORDHAN ANNOUNCES PLANNED MERGER OF THREE STATE-OWNED SOUTH AFRICAN AIRLINES

CAPE TOWN-- South Africa's three State-owned airlines -- national flag carrier

South African Airways (SAA), regional airline SA Express and budget carrier Mango -- are to be merged, Public Enterprises Minister PravinGordhan announced Thursday.

Briefing media at Parliament here on board appointments of State-owned companies (SOCs) under the Department of Public Enterprises (DPE) portfolio, Gordhan said there are plans to merge the three airlinesm which have some overlapping destinations.

Bringing the airlines together and rationalising their routes are important. Rationalising the kind of aircraft needed at a particular time and day, that's the experience we're beginning to learn from airlines around the world," the Minister said.

It's that synergy and savings. Our net guess is that by putting the airlines together, we can go through a transition period where there are going to be difficulties. If you have something dysfunctional and [you] try to sell it, you will get little for it. The real challenge is putting the right people in the right places both on the boards and management teams, and having the right oversight."

Source: NAM NEWS NETWORK

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