SAA set to oppose 1time takeover

Cape Town – South African Airways is set to oppose the planned takeover of liquidated budget airline 1time by London-based Fastjet Airlines due to laws that ban majority ownership of local carriers, a report said.

SAA referred to the legislation that said “airlines operating domestically within South Africa are owned by companies with a minimum 75% South African shareholding,” SAA spokesperson Tlali Tlai told Bloomberg.

Fastjet, which operates mainly in Africa, signed an option agreement with 1time to buy all issued share capital for R1.

The option agreement will see London-based Fastjet join the South African aviation market with an eye to operating domestic and regional flights.

At the time Fastjet CEO Ed Winter said: “I am pleased we have managed to reach a provisional agreement with all parties to buy 1time.”

Before it went under, 1time was the second-largest low-cost airline in South Africa.

Local carriers Comair, the parent company of Kulula and state-owned Mango both of which compete in the budget airline arena, also lodged objections to the takeover with the Air Services Licensing Council, the report said.

1time filed for liquidation in November 2012.

 

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