The Department of Public Enterprises has started the legal process to move national carrier South African Airways (SAA) back under its wing as part of its goal to merge the airline with SA Express. This follows Public Enterprises Minister Pravin Gordhan's recent statement that discussions around the merger had begun. SAA has previously been placed under administration and still resides under the authority of the Treasury and the Department of Finance. "Once the legal framework has been approved to transfer the airline back to the Department of Public Enterprises, the details of a possible merger with SA Express can be concluded and explained publicly," Gordhan told Business Times on Friday. However, the task of merging the airlines into a single profitable national carrier is complex and will require strategic thinking around how the merged entity will avoid inheriting the financial and operational problems that have plagued both airlines. SAA has been running at a loss for the past...
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