South Africa has launched the privatisation of regional carrier Sun Air, giving the opportunity for a foreign airline partner to take a share of up to 49%.
Prospective buyers are being asked to register their interest by 10 April, says NatWest Markets, the UK investment bank which is handling the sale with its BAOE NatWest partner in South Africa. Those which qualify for the bidding would have to submit final offers by June, with a final decision expected soon after.
NatWest says that there has already been a "high degree" of unsolicited interest, understood to be led by European carriers. Virgin Atlantic, which signed up a codesharing agreement with Sun Air in October, is expected to be among the bidders, while Lufthansa and KLM have also been expanding their interests in Africa.
Besides a trade partner, which could take up to 49%of the carrier, the South African Government wants any bid team to include involvement from groups set up to encourage "black empowerment" in the post-apartheid country. Staff would also be offered a stake.
Sun Air has been expanding fast, and now carries around 60,000-70,000 passengers a month on South Africa's "golden-triangle" routes between Cape Town, Durban and Johannesburg, giving it a share of around 13%of the overall domestic market.
The regional carrier's sales are expected to double, to come close to R300 million ($67 million) in the current financial year to the end of March 1997.
Source: Flight International
