Etihad Airways (EY, Abu Dhabi International) CEO James Hogan has refuted reports his airline is considering acquiring a stake in ailing South African Airways (SA, Johannesburg O.R. Tambo). During a press conference outlining his proposed 90-day action plan held in Johannesburg last week, acting SAA CEO Nico Bezuidenhout alluded to possible foreign investment in the airline with the international media at large speculating about a possible tie up with Etihad.

However, in an interview with South Africa's Times newspaper, Hogan flatly rejected any immediate tie-up plans, seen as a panacea to the carrier's perennial woes.

"We're not in talks to have an equity stake in SAA. We never have been. What we have been in talks about is to have a partnership agreement," he said. “We certainly have no acquisitions on the radar, it’s about consolidating what we have.”

Earlier this month, the Emiratis and the South Africans finalized a joint partnership agreement which, in addition to an enhanced codesharing programme, will see SAA launching its own direct flights to Abu Dhabi. Eyebrows further raised last week when Bloomberg news published a report claiming SAA was considering abandoning direct flights to London Heathrow in favour of routing traffic via Abu Dhabi International.

Airline analysts have said the likelihood of SAA attracting significant international investment would remain low unless government signals its intention to cover the carrier's debts. In addition, legislation capping foreign ownership in local airlines at 25% coupled with the carrier's notoriously bureaucratic relationship with its majority shareholder, the South African government, will also likely discourage foreign investors.

On the back of losses said to total more than ZAR2.6 billion (USD224.43 million) for its current 2013-14 financial year, Bezuidenhout's action plans aims to make more than ZAR1.3 billion (USD112 million) in cost-savings over the next 90 days with measures said to include the scrapping of its loss-making Johannesburg O.R. Tambo-Beijing Capital route, the sale of units including catering firm Air Chefs, and the possible cutting of pilot and cabin crew staff levels.