SAA merger: CEO raises questions
12 January 2017
Cape Town - It is unclear what a merger between the three state-owned airlines SAA, Mango and SA Express would achieve that cannot be achieved by each airline individually, Erik Venter, CEO of Comair, told Fin24.
This was in reaction to a parliamentary response by Public Enterprises Minister Lynne Brown. Fin24 reported on Tuesday that Brown said it will cost government R12.1m to make use of the services of Bain and Company, the Boston-based consultancy firm appointed to manage such a merger.
"Mango is already a 100% subsidiary of SAA and SAA ensures that its flights do not overlap with those of SA Express. So I do not see any structural change to the network or capacity arising from the merger," said Venter.
"The airlines already make common use of some of SAA’s back office systems and airport staff, for instance, so I do not see any meaningful saving in overheads arising specifically from a merger."