SAA in talks with BA over franchise agreement
SAA is talking to British Airways (BA) about the possibility of taking over its franchise agreement in SA, reports Fin24.
This was confirmed by John Lamola, SAA's interim chair and CEO on Friday.
BA cancelled the franchise agreement it had with Comair after the SA company went into provisional liquidation in mid-June.
Recently, Comair's provisional liquidator said his understanding was that BA was looking for a new partner in the SA market.
BA does not comment on franchise agreements as it involves commercially sensitive information, the company previously said.
Local aviation experts have speculated that BA would ideally prefer a full-service airline as a franchise partner in SA.
Full service usually offers a global loyalty programme, a high flight frequency, and a comprehensive route network.
Comair, which at some point accounted for about 40% of SA's domestic aviation market, operated its own low-cost airline, kulula.com, and domestic and regional BA flights as part of the franchise agreement.
Meanwhile, Lamola said that the regulatory process to obtain approval for the Takatso Consortium to buy 51% of the shares in SAA is still underway and the consortium is not yet involved in the running of the airline.
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