South Africa’s Minister of Public Enterprises Alec Erwin has dismissed speculation that negotiations between South African Airways (SAA) and Nigeria have reached a deadlock.
After meeting with the Nigerian Aviation Minister, Mallan Isa Yuguda, Erwin said: “SAA is still part of the bidding process and its bid will be evaluated with other airline bids.”
Mallan Isa Yuguda is expected to visit South Africa next week to discuss bilateral air-service agreements, the Department of Public Enterprises said in a statement.
This week media reports emerged that SAA’s ambitious plan of creating a networking hub in Nigeria by acquiring a 30% stake in the country’s newest airline had been dealt a blow after negotiations with the West African country collapsed. SAA is in talks for a $30-million equity stake in Nigerian Eagle Airline.
A stake in the airline would enable SAA to tap into the lucrative West African market and fulfil its vision of a three-hub strategy comprising a strong presence in southern, eastern and western Africa.
In January, SAA was appointed as the strategic investor in the new Nigerian airline, a replacement for Nigeria Airways, which was liquidated last year. Nigerian Eagle Airline is expected to be operational in August.
The Nigerian government has allocated 30% equity in the airline to private investors and 40% to core investors, with the remaining 30% to be floated through an initial public offering. — I-Net Bridge