CAPE TOWN: South African Airways (SAA) is in talks with Air China about a partnership that could see the pair set up new African hubs and even pave the way for the Asian carrier to take a stake in SAA, people familiar with the negotiations said.
SAA, unprofitable and surviving off state credit guarantees, has held meetings with both Air China and HNA Group’s Hainan Airlines, said the people, who asked not to be identified because the talks were private.
SAA said last year it was seeking an equity partner to aid a recovery plan. A Chinese deal could include establishing a hub in an area such as West Africa, helping to counter fast-growing Ethiopian Airlines Enterprise and Kenya Airways, while broadening China’s access to a continent that provides much of the natural resources that fuel its economy, one person said.
Air China spokeswoman Rao Xinyu declined to provide details beyond those already announced. SAA spokesman Tlali Tlali did not respond to e-mails and Lin Xiaopeng at Hainan declined to comment. Hainan is the fourth-largest Chinese carrier and is looking to expand after a March 25 order for 30 Boeing 787 planes worth $7.7bn at list price.
