Advertisement:

South African Airways, the flag carrier of South Africa, is experiencing significant financial troubles, having not registered a profit since 2011, and is looking for a way to resolve them. Part of the carrier’s plan includes talks with two U.A.E. airlines – Etihad Airways and Emirates Airline. While there are rumours that the two successful UAE airlines might merge, the negotiations of both carriers with SAA are ongoing for a couple of months now. This reveals the great interest the Gulf nation has in the South African airline and its willingness to invest in the economy of the country as a whole.

Separate talks are held between South African Airways and Emirates, with whom the airline has a long-standing partnership and codeshare agreements.

South African Airways and Emirates partnership

Despite that SAA is experiencing several rough years in a row, it has been a partner of Emirates for quite a while now. South African Airways and Emirates have a codeshare agreement and are Skywards partner airlines. The latter means that a passenger can earn Skywards Miles on flights with the South African carrier as well.

The partnership between the two airlines offers numerous possibilities to passengers who want to travel to destinations across South Africa. Travellers can enjoy both direct flights and journeys with a stopover all on one ticket.

SAA offers the opportunity for passengers to reach over 1,200 destinations and 180 countries as a result of the Star Alliance airlines that are their partners.

With the possibility of Emirates buying South African Airways, the travel possibilities for passengers might get even better.

Advertisement:

Emirates to buy South African Airways

The negotiations between South African Airways and Emirates are facilitated by the U.A.E.’s embassy in Pretoria and Mahash Alhameli, the U.A.E. ambassador to South Africa, is personally responsible for them. As per the information he has provided to City Press, a Johannesburg-based newspaper, we are talking about company-to-company negotiations.

So far, neither SAA nor Emirates have come forward with more specific details about a possible deal.

After a visit paid by the South African President Cyril Ramaphosa earlier this month, the U.A.E. pledged to invest about $10 billion in the country

It is clear that an investment in the unprofitable South African carrier is possible since the U.A.E. is interested in helping the country’s economy. After a visit paid by the South African President Cyril Ramaphosa earlier this month, the U.A.E. pledged to invest about $10 billion in the country.

Advertisement:

Along with the airline talks, there is also a potential for investment in Eskom Holdings SOC Ltd., the state-owned power utility. These plans, however, are not at such an advanced level.

In case the negotiations between South African Airways and Emirates result in a purchase, the Gulf carrier will acquire the all-Airbus fleet of 44 aircraft that SAA currently operates. The African carrier also has 3 cargo planes – Boeing 737-300Fs on lease from Star Air Cargo.

Recently, Emirates has undertaken several steps for expanding the airline services, that feature new mergers and partnerships as the one with Fly Dubai and purchasing the smaller 737 jets. In this line of action, it is no wonder if the U.A.E. carrier becomes the new owner of SAA.