SWISSAIR parent SAirGroup has surprised the industry by signing a strategic alliance with South African Airways.
The deal will see SAirGroup take a 20% stake, with options for a further 10%, in Africa’s biggest carrier for $230m.
Lufthansa and partner Singapore Airlines were expected to bring SAA into the Star Alliance. American Airlines was also bidding to secure SAA’s Oneworld membership (Travel Weekly February 24).
Swissair general manager UK and Ireland Kirk Albrow called the deal with SAA a major coup for SAirGroup.
“We will be looking at all opportunities to work together. There will be mainly European expansion,” he said.
Albrow said SAA will work with other Qualiflyer airlines to expand each other’s networks in order to make the European alliance a global body.
The investment from SAirGroup starts SAA’s privatisation process. The aim is to make the African carrier more competitive with foreign airlines, including British Airways and Virgin Atlantic.