South African Airways faces regulator inquiry over sale plan
JOHANNESBURG – South African Airways officials will be summoned to a meeting with regulators next month to disclose details about talks with potential equity partners and give assurances that any deal won’t violate foreign-ownership laws.
Under the Air Services Licensing Act of 1990, airlines must be at least three-quarters owned by South Africans to operate a domestic service. That would prevent international operators from buying more than a 25% stake from the government, unless the rules are changed.
“We are going to be calling SAA to next month’s meeting to share with us what their plans are,” said Mike Mabasa, chairman of the Air Services Licensing Council, which regulates domestic aviation within South Africa. “If they are already in conversations with strategic equity partners we need to know what that entails.”
Source: iol.co.za