Could SAA squeeze a listing out of Mango? - CNBC Africa

Could SAA squeeze a listing out of Mango?

Southern Africa

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Nhlanhla Nene says significant achievements were made during SAA’s 90 Day Action Plan. PHOTO: South Africa To

South African Airways (SAA) acting CEO Nico Bezuidenhout allegedly said that the listing of its low cost airline, Mango is still being considered.

According to Moneyweb, Bezuidenhout said this at a media briefing on Thursday.

Earlier in the day, South African Finance Minister Nhlanhla said significant achievements were made during SAA’s 90 Day Action Plan. 

In a statement, Nene explained that in October last year government took decisive action to put South African Airways (SAA) back on the path of financial stability.

Nene said significant achievements were made during SAA’s 90 Day Action Plan. Meetings were held weekly between SAA management and representatives from National Treasury, strengthened by the participation from the Presidency, to ensure the effective implementation of the plan.

“Savings will begin to be realised during the 2015/16 financial year which are expected to result in improvements in the financial performance of the airline going forward,” said Nene.

South Africa’s national airline has since stopped operating loss-making routes to Beijing and Mumbai.

However, it has started a new route to Abu Dhabi which will - according to Nene - enable continued connectivity to China and India and many other destinations within Asia.

Meanwhile, according to media reports, the struggling airline is in talks with Air China Ltd and HNA Group's Hainan Airlines Co to set up a West Africa-based hub or even sell a stake in the company.

(READ MORE: SAA in talks with Air China, Hainan Airlines on strategic pact: Bloomberg)

Nene said the airline had also renegotiated contracts with suppliers, which will result in significant savings in operational costs.

“SAA has been able to reduce the costs of the leases on several aircraft on the fleet,” he said.

Last year, South Africa's Minister of Public Enterprises Lynne Brown said the government would consider a strategic partner for SAA, after injecting the airline with two bailouts worth 10 billion rand. 

(READ MORE: SAA receives additional r6.48 billion guarantee)

*Additional reporting by Reuters

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