Richard Branson said to make $1 million in aviation, you should start with a billion greenbacks first.
And Pan Am’s founder Juan Trippe said there was plenty of money in airlines… his.
Aviation analyst Guy Leitch points out it has always been a mystery why rich people sink money into carriers.
In the purported deal between FlySafair’s Irish principals and local shareholders selling off some equity to Public Investment Corporation-backed investment firm Harith, it may not be the money of the wealthy behind it.
Instead, it would be government employees’ retirement meal tickets that could shrink to little.
It would be foolish to think with thousands of staffers’ and pensioners’ money at play, the state would not want to have a hand in the ongoing success of the dominant market player in the skies.
Interference may be inevitable from that perspective alone, not to mention the strategic importance placed on aviation by government and the PIC’s investment direction when it comes to infrastructure.
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Yet, the PIC did not touch SAA and the flag carrier has apparently been in the market looking for capital.
Also, the Harith-led Takatso bid to acquire SAA saw the firm retreat.
Is there wisdom in trying again?
Comair and Mango were also once on the company’s wish list.
Could it be that the allure of a stake in any airline, as long as it flies, is an attempt to feed Harith’s other investment: Lanseria airport?
There, its offshoot, and PIC part-owned Lebashe Investments, has faced headwinds; including Mango and Comair going bust.
At the moment, its commercial lifeline is FlySafair. Curiouser and curiouser, as Alice in Wonderland would have said.
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