South African Airways restarts search for strategic partner

South African Airways (SAA) has relaunched its search for a new strategic equity partner following the collapse of a deal with the Takatso Consortium nearly two years ago. The South African cabinet has approved a process intended to be “transparent, competitive and properly governed” to identify an investor.

The primary objective of the search is to reduce the government’s financial exposure and the burden on taxpayers. The government is seeking a partner capable of strengthening the airline’s balance sheet, providing aviation expertise, and supporting aircraft acquisition or leasing to facilitate the opening of new routes.

The previous attempt to sell a 51% stake to the Takatso Consortium was terminated in March 2024 after negotiations failed to reach final terms. While the airline is currently smaller than it was during its 2019 business rescue period, it has reported recent profits, including a R30 million profit in the 2024/25 financial year, though officials noted this was partly driven by the sale of Heathrow Airport landing rights.