South African Airways (SA, Johannesburg O.R. Tambo) executives have held preliminary talks with Air China (CA, Beijing Capital) and Hainan Airlines (HU, Haikou) over a possible partnership airline sources who spoke to Bloomberg news on condition of anonymity have said.
The news wire says a possible tie up with the Chinese could pave the way for the establishment of new African bases and even a possible stake acquisition. The move would bode well for the two Star Alliance carriers given that both have set their sights on expanding their African coverage.
Though perennially dependent on the state fiscus, SAA is determined to attain longterm profitability and sustainability with the upcoming implementation of its Long Term Turnaround programme. Among the targets set are a complete rethink of its network strategy with focus to now be placed on the profitable African market - West Africa in particular - where Accra is being touted as a strong potential hub.
Later this year, Air China will commence its own dedicated services to Johannesburg O.R. Tambo as well as Addis Ababa International, home to fellow Star Alliance member, Ethiopian Airlines (ET, Addis Ababa International).
Last year, South African Airways' sole shareholder, the South African government, said it had begun searching for a suitable strategic partner for the loss-making carrier. Aside from the Chinese, acting CEO Nico Bezuidenhout recently said his airline would also consider joining the Etihad Airways Partners - a quasi-alliance of airlines which, while all currently affiliated with Etihad Airways (EY, Abu Dhabi International), is open to other airlines.
