R12m for foreign firm to manage SA's airline mergers
11 January 2017
Cape Town - It will cost government R12.1m to make use of the services of Bain and Company, the Boston-based consultancy firm appointed to manage the merger of South Africa’s three state airlines - SAA, Mango and SA Express, said Public Enterprises Minister Lynne Brown.
Responding to a parliamentary question posed by the DA’s Alf Lees, Brown said the scope of the work entails the development of an “optimal corporate structure to re-align the state-owned airlines” and that the consultancy will take cognisance of industry best practices.
In October 2016 at a meeting of the Airlines Association of Southern Africa in Namibia, Brown said airlines worldwide were compelled to restructure their operations to address inefficiencies and remain relevant to the markets they serve.
“The same is the case with SAA, SA Express and Mango that are in need of such restructuring to effectively and sustainably deliver on their respective mandates,” she said at the time.