What’s in store for new merged Airlink giant?

AIRLINK has announced
its plans to acquire
Safair – the airline
company behind domestic
carrier FlySafair – should the
Competition Commission
give the green light.
Both airlines have stated
that there will be no change
in either organisation’s
operations, name or
branding.
The Safair purchase will
not affect Airlink’s existing
SAA franchise partnership,
says Airlink ceo and md,
Rodger Foster. Airlink
will purchase Safair in its
entirety. However, the plan
is for both Airlink and Safair
(including FlySafair and
Safair’s other businesses,
such as its humanitarian
aid flights) to continue to
operate separately under
their own brands.
The airlines also plan
to retain their respective
products, aircraft fleets,
management and leadership
teams.
Rodger says it will be
business as usual should
the merger go ahead.
“Airlink and Safair will
continue to operate their
business activities and with
the same leadership, staff
complement and marketing.
Whilst we will certainly
establish synergies and
cost savings, neither of the
brands or structures behind
them will be compromised.
“An Airlink acquisition of
Safair makes good business
sense. Getting together will
unlock economies of scale
that we can take advantage
of and will position us for
greater growth.”
Elmar Conradie, Safair
ceo, who will remain in
his post, adds that the
consolidation will enable
both airlines to share costs,
optimise assets and remove
systems duplications.
Rodger adds: “We expect
to extract cost savings
over time that will benefit
both businesses and our
customers. Domestic
airfares are determined by
the market and both airlines
will be better equipped to
make commercial sense of
the market.”
The two companies have
submitted their merger
plan to South Africa’s
Competition Commission for
approval under the umbrella
of a new Airlink Group of
companies. The process of
completion of all conditions
precedent could take several
months, Rodger says, with a
decision expected in the first
quarter of next year.