State-owned regional airline SA Express (SAX) has been in provisional liquidation since April 2020.
The ‘failed’ carrier has now been given a reprieve until July 2022 and Chris Hart (Executive Chairperson of Global Impact Holdings) is leading the drive to save it.
On The Money Show, Hart explains that he was approached by a consortium to raise the required funding.
They’re looking at both anchor investors and the option of crowdfunding.
Hart says there’s been “quite a bit of interest”, also from abroad.
“To me it’s a clean sheet of paper, you’re starting off fresh. I don’t see it as trying to save a failed business but rather to resurrect a new one firmly on the basis of commercial merits.”
Chris Hart, Executive Chair – Global Impact Holdings
At this stage of the cycle where the airline industry globally has been hit very hard, there are assets coming on the market that are very compelling… The asset here is the freight and passenger license that’s for both domestic and international.”
Chris Hart, Executive Chair – Global Impact Holdings
We are in the process of raising the capital that would be needed to restock the airline not only with aircraft but the actual supporting infrastructure that goes with it… It’s a $15 million exercise (more than R230 million)… to get it started…”
Chris Hart, Executive Chair – Global Impact Holdings
Hart says the “new” SA Express will focus on the routes serving smaller centres, both on a passenger and freight basis.
The business model is in fact not looking to compete with the big Joburg-Cape Town-Durban triangle… but rather to service the smaller centres… SA Express filled a very niche gap and without it these small centres like Upington, Phalaborwa etcetera are feeling the pinch.”
Chris Hart, Executive Chair – Global Impact Holdings