Doug Birch/LONDON
South Africa has missed the latest deadline for the publication of a list of bidders for a stake in South African Airways (SAA). Sources close to the privatisation suggest frontrunner Lufthansa faces a serious challenge from other bidders.
The South African Government was due to issue an information memorandum on the partial privatisation - and the names of applicants - by 23 April, but now expects to do so by the end of the month. The carrier says the process has been delayed by the late issuing of forms to bidders.
Flight International understands the memorandum will reveal that the government has decided to sell a 20% stake in SAA - expected to raise at least R1 billion ($165 million) - rather than the maximum 30% previously mooted.
Sources say a more conservative stance may have been adopted because the carrier has moved into profit for the year ending 31 March. The airline says: "SAA is now making serious money and moved into the black."
The improvement is largely a result of strategies introduced by chief executive Coleman Andrews, who has revised SAA's route network, upgraded its fleet and secured new alliances.
While Lufthansa's anticipated joint bid with prospective Star ally Singapore Airlines remains favourite to secure the holding, sources suggest British Airways is suddenly back in the running, while Flight International sister publication Airline Business reports that a Swissair/Delta Air Lines bid is also being taken seriously.
David Bonderman of the Texas Pacific Group, the financial interests of which include Continental and America West, is the latest to show an interest in SAA.
He met executives from holding company Transnet in April, and is quoted as saying: "Certain bidders for SAA would limit their airline's strategic flexibility to suit their own needs, rather than free SAA to do its own thing independently of major alliances while continuing to forge its own alliances with whichever carriers it chooses."
Andrews has also listed Continental's "Wings" alliance partners KLM/Northwest, as potential bidders, while Virgin Atlantic is believed to have dropped out.
Source: Flight International
