South African Airways is in talks to buy a stake in Senegal Airlines as the continent’s biggest carrier seeks to counter expansion strategies at competitors Ethiopian Airlines Enterprise and Kenya Airways Ltd.
South African Airways Ltd., the continent’s biggest carrier, said it had an operating loss of 991 million rand ($88.9 million) in the 12 months through March because of unprofitable routes and a weaker rand.
South African Airways Ltd., the country’s state-controlled carrier, needs “billions” of rand in government funding and won’t break even for four to five years, Chief Executive Officer Monwabisi Kalawe said.
South African Airways Ltd. said it’s seeking to upgrade the engines of its aging Airbus SAS A340 wide-body fleet to cut fuel costs while it decides between new long-haul models from the European manufacturer and Boeing Co.
Ethiopian Airlines Enterprise said it will locate its fourth hub in the Democratic Republic of Congo as Africa’s No. 2 carrier seeks to tap Chinese economic links and fill long-haul flights to destinations such as Brazil.
South Africa’s Civil Aviation Authority is investigating a breach of regulations after South African Airways canceled a flight between Johannesburg and New York on May 3, Business Day reported, citing the regulator.