SAA invited to acquire stake in Senegal Airlines

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According to eTurboNews, Senegal has invited South African Airways to acquire a stake in Senegal Airlines.

While noting that the Senegalese government is seeking partners to boost its holding to avoid bankruptcy, Finance Minister Amadou Ba said that the state-owned airline is open for negotiations with technical partners and that it has received a few offers, including one from SAA. Other investors interested in the deal include the Air France-KLM Group and Ethiopian Airlines.

Senegal Airlines, which began operations in 2011 after the collapse of Air Senegal International, is jointly owned by the Senegalese government and private investors, who have about a 64% stake in the business.

According to reports, about 30% of the Senegalese airline is up for sale to investors.

SAA has been planning to develop a regional airport in West Africa, which will serve as a secondary business hub, and countries under consideration include Nigeria, Ghana, Senegal, Gabon and Togo.

Speaking during the announcement of the airline’s annual results last Wednesday, SAA CEO Monwabisi Kalawe said the airline is “looking at a few countries in West Africa.” The airline’s annual results showed that it suffered an $88 million loss in the year through March.

SAA follows in the footsteps of its rival Ethiopian Airlines, which added regional hubs in Togo and Malawi last week.