Final bids for an equity stake in South African Airlines (SAA) are due to be received by the middle of this month, with three airlines - or airline alliances - in the running, as is a major international investment group.
An internal communication from chief executive Coleman Andrews listed seven potential bidders for the stake earlier this year, but a high level source close to the privatisation says the number has been "reduced to four".
The source lists three of the parties as Lufthansa, representing the Star Alliance, Swissair, which leads the Qualiflyer group, and Texas Pacific (TPG), a US-based finance group headed by specialist airline investor David Bonderman.
Lufthansa and Swissair may yet submit joint bids with Singapore Airlines and Delta Air Lines respectively, while the fourth bid is thought to come from the oneworld alliance, with British Airways and American Airlines known to have expressed an interest.
Although David Bonderman has interests in US majors Northwest and Continental, he is understood to be making an independent bid, rather than speaking for the emerging Wings alliance, of which both carriers are members. He has indicated that SAA would be encouraged to form alliances according to its own self-interest.
The source confirms that a 20% stake is to be sold, rather than the 20-25% previously stated.
Although the bid list will be finalised after the completion of a last remaining due-diligence visit this week, the South African Government has no plans to reveal the identities of interested parties. A decision on the successful bid should be made early in the third quarter, says the source.
Meanwhile, SAA has doubled the frequency of flights to South America, with its triangular service taking in Sao Paulo and Buenos Aires due to operate four times a week, and set to go daily in a year. The airline has made codeshare deals with Brazil's Varig and Aerolineas Argentinas.
Source: Flight International
