This archive report was first published on 7 October 2019.
Published on October 7, 2019, Ethiopian Airlines Group expressed interest in supporting South African Airways (SAA) and would consider buying a stake if South Africa decides to sell equity in the struggling state carrier.
South African Airways has not made a profit since 2011 and has been struggling financially, with a chronic debt problem of 9.2 billion rand ($611 million) in borrowings. The airline delayed the release of its annual earnings last week due to its precarious financial state.
According to Tewolde Gebre Mariam, the chief executive officer of Ethiopian Airlines, the group had discussions with SAA's former Chief Executive Officer Vuyani Jarana before his resignation in May. Ethiopian Airlines and SAA are already partners in the Star Alliance.
Finance Minister Tito Mboweni has been allocating additional funds to debt-ridden state-owned enterprises, including power utility Eskom Holdings and the South African Broadcasting Corporation, weighing heavily on the economy.
Ethiopian Airlines is Africa's biggest and only consistently profitable airline, with main rivals SAA and Kenya Airways struggling with losses and relying on government support.
