Gulf carrier Emirates has ruled out investing in South African Airways, narrowing the number of potential saviors of the loss-making state airline.<\/p>\n
While Emirates and SAA are working closely to enhance their code-sharing agreement, there are no plans to invest, an Emirates spokesperson said in an emailed statement Monday.<\/p>\n
The Dubai-based company commented after Johannesburg-based newspaper City Press reported both Emirates and Etihad were in talks with SAA about a partnership, citing the UAE\u2019s ambassador to South Africa.<\/p>\n
SAA is in the throes of a financial crisis that has led CEO Vuyani Jarana to call for an aviation-industry investor to help it return to profit and avoid further government bailouts.<\/p>\n
Gulf airlines have been muted as candidates, given their routes linking major African cities with Middle Eastern hubs and other Asian and European destinations.<\/p>\n
Etihad declined to comment, while SAA didn\u2019t respond to requests for comment.<\/p>\n
Any move by Etihad to invest in SAA would reverse its policy to scale back a past strategy of sealing alliances through equity investments, which saw the Abu Dhabi-based airline spend cash on struggling carriers including Air Berlin Plc, which filed for insolvency last year.<\/p>\n
Etihad CEO Tony Douglas is reigning in the carrier\u2019s reach by cutting jobs, routes and working to freeze plane orders.<\/p>\n
SAA and Etihad briefly had a code-sharing agreement, but it was scrapped when the South African carrier ended direct flights in 2016 between its home base in Johannesburg and Abu Dhabi.<\/p>\n
Nigeria is competing with SAA for attention from Gulf carriers after announcing a new national airline at the Farnborough Air Show last week. Aviation Minister Hadi Sirika tweeted a picture of himself with Qatar Airways CEO Akbar Al-Baker, referring to airline boss as a potential partner or investor.<\/p>\n