The long-awaited sale of South African Airways (SAA) has received a crucial approval, marking a significant step towards the privatization of the national carrier. The Competition Tribunal has given the green light for the sale of a 51% stake in SAA to the Takatso Aviation consortium, the government’s preferred partner. This decision comes with certain conditions aimed at safeguarding the interests of the airline and its employees. The Department of Public Enterprises (DPE) has expressed its satisfaction with the decision, acknowledging the efforts made to restore the national carrier to profitability and sustainability.
The Department of Public Enterprises of South Africa (DPE) welcomed in a statement on 25 July 2026 the decision in favour of the privatisation of the national carrier. This is a “significant step in the government’s efforts to consolidate the re-emergence of the national carrier as a key strategic asset” according to the DPE, “the Competition Tribunal’s decision placing it with Takatso on track to finalize other regulatory requirements essential to closing the transaction.” The approval brings the Takatso Aviation consortium one step closer to concluding the transaction and finalizing other regulatory requirements.
While the approval is a positive development, it does come with specific conditions and restrictions. One of the key conditions is a moratorium on staff cuts, ensuring job security for SAA employees during the transitional phase. Additionally, minority shareholders in the consortium, Global Aviation Operations (GE) and management consultancy Syranix, have been instructed to divest their shares due to concerns related to their ownership of the domestic competitor, Lift Airlines. Already last May, this last condition had been imposed by the competition watchdog Compcom, which stressed that they would have directors in SAA and therefore “sensitive information”, with the competition Tribunal’s decision emphasizing the importance of maintaining a level playing field in the domestic aviation market.
The Takatso Aviation consortium, led by Harith General Partners, an asset management firm that also owns Lanseria Airport, will acquire a 51% controlling stake in the South African Airways Group. In exchange, the consortium will inject ZAR 3 billion ($167 million) into SAA’s operating capital over the next two years. The Department of Public Enterprises will be issued ZAR 3 billion worth of SAA preferred shares and retain a 49% equity stake, ensuring a long-term national strategic interest in the airline. The government will also cover the remainder of SAA’s legacy debt, approximately $83.5 million.
South African Airways has faced financial difficulties since 2011, leading to continuous government interventions to keep it afloat. With the strategic partnership with Takatso Aviation, the government aims to infuse the airline with the necessary expertise and capital to bring it back to profitability and sustainability. The acquisition by Takatso is seen as a lifeline for SAA, which was on the verge of liquidation.
