South Africa has drawn up a shortlist of potential bidders for Sun Air in the first phase of the regional airline's privatisation. The list includes Air France, Malaysian Airlines (MAS), Virgin Atlantic and South African domestic carrier Comair, which acts as a British Airways franchise operator.
Alongside the airline bidders are four black economic-empowerment and business groupings, which have been designated by the Government as an essential part of any bid. A stake of up to 49% is on offer, says NatWest Markets, the UK investment bank advising on the privatisation through its local BOE NatWest partner (Flight International 2-8 April).
Virgin Atlantic, which already operates a codeshare with Sun Air, is widely tipped as a front runner, and its application comes complete with a coalition of six empowerment groups. Other airline bidders are likely to have to set up similar arrangements with such groupings before the privatisation goes to its next phase.
Privately owned Comair, which was a largely unexpected bidder, has teamed with NSA Investments, a listed South African investment group. Comair is expected to carry around 1 million passengers in its first year as the BA franchise partner, and acquisition of Sun Air would come close to doubling that figure.
All the bidders have been sent tender documents and will have until 22 May to submit a full bid. A final decision is due in June.
Source: Flight International
