The South African government has hired Bain & Co to advise on a strategy for loss-making South African Airways, a spokeswoman for the National Treasury said.
The national carrier has been surviving with the help of 20 billion rand ($1.4 billion) in state guarantees. It reported a 1.5 billion rand loss for the 2015/16 financial year, after losing 5.6 billion rand the year before.
Moody’s, Fitch and S&P are all currently reviewing their ratings of South Africa and have raised concerns about the burden that state-run firms put on stretched public finances.
Bain & Co will also advise the National Treasury on South Africa’s two other state-owned airlines: South African Express and low-cost carrier Mango, as the National Treasury is reviewing its airline strategy. It has been exploring a merger of SAA and SA Express and has said it is seeking an equity partner for SAA.
“[The contract with Bain] was awarded around the end of October. It is for a period of three months,” said the National Treasury spokeswoman Yolisa Tyantsi.
* Reuters
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