Is SAA acquisition still viable after Gidon Novick resignation?
The former CEO of Comair and co-founder of Lift Gidon Novick announced his resignation as a director of the Takatso consortium
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The Department of Public Enterprises has reiterated its commitment to save South African Airways (SAA).
This comes after questions were raised whether the acquisition of the embattled airline was still viable following the resignation of the Takatso consortium’s director.
Gidon Novick resignation
South African aviation industry tycoon and the former CEO of Comair and co-founder of Lift Gidon Novick this week announced his resignation as a director of the Takatso consortium which is negotiating to acquire 51% of SAA.
Deal not at risk
The department said it is awaiting the completion of the regulatory processes and thereafter will finalise Takatso’s acquisition of the 51% shareholding in SAA.
“The deal is not at risk. We condemn the deliberate misinformation and casting of doubt about the transaction and regulatory processes since the resignation of Gideon Novick as a board member of the Takatso consortium.”
“This distortion of facts will not succeed in derailing the creative solutions to ensuring a positive future for the airline, its pilots and staff,” it said.
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SAA viability
The DPE said the public should be aware of the efforts of competitors, detractors, and other forces to undermine government’s efforts to save jobs and ensure a viable airline.
“The traveling public is being fleeced because of the shortage of seats.”
The DPE said it is confident that as a strategic equity partner, Takatso will introduce the required technical, financial, and operational expertise into the business.
“The current SAA operations and flights to various destination is ensuring that the national airline continues to play a critical role in the aviation industry and economy at large by providing connectivity services for both passengers and cargo, facilitating trade and investment, tourism and promoting job creation.”
Semi-privatisation deal alive
Meanwhile, Public Enterprises Minister Pravin Gordhan insisted the semi-privatisation deal of SAA remains “alive”.
Gordhan was called to brief the parliamentary oversight Standing Committee on Public Accounts (SCOPA) this week during which he dismissed the resignation of Novick as “argy-bargy”.
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