South African Airways (SAA) will soon be a separate entity reporting directly to the Department of Public Enterprises, Transnet chief executive Maria Ramos said on Friday.
Addressing the Cape Town Press Club, Ramos said she has received permission from the Cabinet to begin the process of taking SAA out of the Transnet group, and the same will apply to its other aviation interests, such as SA Express.
In this phase, SAA will probably be set up as a separate entity reporting directly to the Department of Public Enterprises.
”I think it’s up to government to decide what it’s going to do with SAA going forward,” she said.
”I can tell you, the airline industry is not in the best shape ever, and I’ve had lots and lots of people approach me in the past 10 months on doing business with Transnet; I haven’t had anybody approach me about buying any part of SAA.
”I can sell big parts of [Transnet], but not on the SAA side.
”So I think government will probably set it up independently, and I would imagine when the right opportunity comes, they will do so,” Ramos said.
Transnet needs to concentrate on its core business of ports, freight trains and pipelines.
Regarding Transnet’s rail services, she said she anticipates Transnet will continue to own the rail infrastructure, even if the group sells its passenger rails service.
”We are in the process now of looking at doing a vertical separation at Spoornet.”
This means separating the rail operations from the infrastructure business.
The operations side will go into another company, but all will remain within the Transnet group, she said. — Sapa