SAirGroup has won the battle for a 20% equity stake in state-owned South African Airways (SAA)after Lufthansa and Singapore Airlines (SIA),pulled out of the bidding.
The Swiss company's $230 million offer was favoured over bids from American Airlines and David Bonderman's Texas Pacific Group.
The move has prompted renewed speculation that SAirGroup is attempting to strengthen its hand in discussions with potential global alliance partners, including oneworld, in the wake of the setback with Delta, which has linked with Air France.
SAirGroup claims that the acquisition of the SAA stake will establish its subsidiary, Swissair, the other members of the Qualiflyer Group, such as Sabena and TAP Air Portugal, and SAA as "the strongest alliance on the African continent", accounting for over 40% of traffic between Europe and South Africa. Sabena and TAP have an alliance with SAA domestic rival Nationwide Airlines
Swissair and SAA - Africa's largest airline - codeshared on the Zurich-Johannesburg route. Collaboration with SAA" should also be extended to other business sectors such as aircraft maintenance, ground services and cargo", SAirGroup says .
Lufthansa and SIA refuse to comment on their decision to pull out of the bidding. Sources say that concern over the price caused the airlines to lose interest. The German flag carrier codeshares with SAA on flights between Germany and South Africa.
Source: Flight International
