ACQUISITION The Tanzanian cabinet has cleared South African Airways (SAA) to buy 49% of Air Tanzania for $20 million. Half will go to finance SAA's turnaround plan for the ailing carrier. SAA will now work with Tanzanian government advisers to form the new airline's board and management team and implement the business plan. SAA says the deal means that it has secured an East African hub as part of its strategy to form a "golden triangle" between South, West and East Africa. It also means that SAA gains Air Tanzania's route rights to expand its network to Entebbe, Harare, Kinshasa, Lilongwe and Lusaka. SAA is expected to sign the transaction agreement in early November.
Source: Flight International
