South Africa has reopened its search for a private investor in South African Airways, nearly two years after abandoning a proposed sale of 51% of the national carrier.
Cabinet approved a “*transparent, competitive and properly governed*” process to identify a strategic equity partner, according to an official government statement.
The government wants an investor capable of strengthening SAA’s balance sheet, supplying aviation expertise and supporting the purchase or leasing of aircraft and the opening of new routes.
It also wants to reduce the financial exposure carried by taxpayers.
The announcement does not specify how much of the airline will be offered, what SAA is worth or how much capital the investor must provide.
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**Why the first sale collapsed**
South Africa selected the Takatso Consortium as SAA’s preferred partner in 2021.
Takatso was expected to receive a controlling 51% interest, with the state retaining 49%. The consortium promised to invest more than R3 billion over three years.
The transaction was presented as a way to restart SAA without returning repeatedly to the national budget.
However, negotiations continued for almost three years without completion. The government terminated the deal in March 2024 after the parties failed to reach final terms against a changing valuation of the airline.
The collapse raised questions about how Takatso was selected, whether the initial valuation was reliable and how much influence the government was prepared to surrender.
Any new transaction will be judged against that history.
**SAA is smaller—but healthier**
The airline entering the new process is different from the SAA that entered business rescue in 2019.
It has fewer aircraft, employees and destinations. Operations were suspended during the restructuring before flights gradually resumed in 2021.
SAA later reported a R252 million profit for the 2022/23 financial year, its first since 2012. Government subsequently said the airline was funding its own operations and fleet growth without new guarantees.
That progress could make SAA more attractive to investors.
However, the airline still lacks the scale of Ethiopian Airlines, Kenya Airways and major Gulf carriers. Expanding its long-haul network requires aircraft, maintenance capacity and substantial working capital.
A strategic airline investor could offer more than money by providing access to aircraft, shared routes, maintenance services and international sales networks.
**The ownership question remains unanswered**
The government has not said whether it will again offer majority control.
South African aviation rules and political concerns about selling a national asset may restrict the options available to foreign airlines. A financial investor, meanwhile, may lack the operational expertise Cabinet says SAA needs.
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News24 reported that the search follows Cabinet’s approval, but no interested companies have been publicly identified.
Before the process can be judged, government must disclose the stake, valuation method, minimum capital and timetable.
SAA has survived business rescue and the failure of its first attempted sale. The new search must now prove that the airline is sufficiently attractive for a private investor to risk its own money.