The plans to merge SAA,Mango and SA express are at an advanced stage and could come before Cabinet for approval as early as next week, Parliament has been told.
On May 24,Public Enterprises Minister Pravin Gordhan announced the possible merger and He further said that all three airlines currently fly to the same destinations.
“Bringing the airlines together and rationalising their routes and 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,” he 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 boards and management teams, and having the right oversight,” he said.
The consolidation plan is being presented at the economic cluster and next week it will be submitted to Cabinet for a decision.
And SA Express will be receiving a R300 million guarantee from Treasury's contingency reserve after it was grounded twice for failing to pay the Airports Company South Africa.