The Department of Public Enterprises has welcomed the approval of Takatso Consortium buying a 51 percent stake in South African Airways (SAA).

It says that this is a significant step in the national carrier’s re-emergence as a key strategic asset. The Competition Tribunal gave the green light for the transaction, but it comes with conditions. Among them a moratorium on retrenchments and Lift Airlines divests from Takatso.

Public Enterprises Minister Pravin Gordhan says he is confident that the repositioning of SAA will set a good example of what can be achieved when the right financial and operational framework is given to state-owned companies.

Labour unions like the National Union of Metalworkers (Numsa) have objected to the take over as they first want to know how Takatso was chosen to have a majority stake in the national carrier.