Government restarts hunt for SAA strategic equity partner

Cabinet has approved a fresh process to identify a strategic equity partner (SEP) for South African Airways (SAA), the airline confirmed in a statement on 2 September 2026. The move revives a strategy first proposed after the carrier emerged from business rescue five years ago.

Why this matters

Officials previously said the aim of finding a SEP was to strengthen SAA’s balance sheet, provide access to capital and aviation expertise, support growth and reduce government’s future financial exposure to the airline. SAA described the Cabinet decision as an important milestone for its long-term sustainability, financial resilience, and growth ambitions in its statement.

Unanswered questions

The company and government have not detailed how much of the airline would be offered, SAA’s current valuation, the size of any required capital injection, or whether the state would surrender control. SAA also said it would not provide further comment while the process is being led by the Department of Transport as shareholder.

Reaction from watchdogs and analysts

OUTA CEO Wayne Duvenage urged transparency in any sale and expressed support for government stepping away from day-to-day control. He said:

“We trust this process will be transparent and that a majority stake will be sold to provide the new owner with a controlling interest in the airline. This transaction must release the airline from the shackles of ongoing political interference.”

Aviation analyst and SA Flyer editor Guy Leitch welcomed the decision while warning that capital alone would not solve SAA’s problems. He said private capital had become essential and noted the airline’s ongoing losses and recent pressures on its finances. Leitch added that any partner should bring not only funds but also skilled leadership to avoid a return to frequent CEO turnover.

How we got here

SAA entered business rescue in December 2019 after years of losses, board dysfunction and mismanagement. Over the preceding decade, the airline had received more than R50 billion in bailouts, according to the source material.

Five years earlier, the Takatso Consortium had been selected as the preferred SEP after SAA exited business rescue in April 2021. That transaction stalled amid regulatory hurdles and valuation disputes, and Public Enterprises Minister Pravin Gordhan later ended the process in March 2024 after a revised valuation reduced the airline’s business value to R1 billion and its properties to R5.5 billion.

Following the collapse of the Takatso deal, SAA pursued potential Middle Eastern investment. Those approaches did not result in an equity partner; Qatar Airways instead invested in Airlink.

What supporters want

Duvenage said the public must be able to scrutinise any eventual transaction to ensure SAA is properly valued and that the deal serves society’s interests. He rejected the prospect of the process taking place beyond public scrutiny, saying:

“The transaction must be transparent, and the public must have oversight of the deal to ensure it is in the best interests of society and that the airline is valued properly. Government cannot say they will not provide comment or details while the process is underway.”

Next steps

Cabinet’s approval starts a new formal process to identify a strategic equity partner. SAA welcomed the decision in a statement but declined further comment while the Department of Transport leads the process.