The South African Air Services Licensing Council has given South African Airways (SAA) 90 days to meet compliance demands and reveal details about its deal with Takatso Consortium.
This is to check whether the airline is able to service its routes based on its business model.
It comes after it was revealed that its shortcomings were business-related and not due to the impact of the COVID-19 pandemic.
SAA will have to submit documentary proof that its business model after the Takatso Consortium acquisition will be able to secure the same licensing conditions they secured when the license was under the government.
If SAA cannot meet the compliance demands, it's likely that its license would be suspended so that other operators are able to use the routes that it's unable to service.
Refilwe Moloto spoke to aviation analyst Phuthego Mojapele who shed more light on SAA's position.
The council cannot hold those licenses if other operators want those licenses. So, they need to explain themselves. Hence, the council says, 'we give you ninety days, come up with a plan, and then we will be able to justify why we should keep the license going'.
Phuthego Mojapele, aviation analyst
This would also prevent the market from being taken over by international airlines.
SAA had the opportunity [to meet the service demands of the market but] they are not servicing them... That money was supposed to be ours is now going to the American airlines. However, the space is still there for us South African airline operators to tap into those routes because we still own them. We still have slots available.
Phuthego Mojapele, aviation analyst
Listen to the full audio above.
This article first appeared on CapeTalk : Licensing Council gives SAA 90 days to reveal Takatso equity ownership details
