South African Airways deal is not at risk, government says

South Africa’s government said a deal to sell a 51% stake in bankrupt state-owned South African Airways to a group of private investors isn’t at risk after aviation veteran Gidon Novick resigned from the proposed new owner’s board.

Novick, a former head of the recently collapsed Comair Ltd., was intended to provide the industrial expertise to a revived SAA after more than 18 months in receivership. He resigned earlier this week from the board of the Takatso consortium, which is made up of closely held Global Airways, and private-equity firm Harith General Partners.

“Government is awaiting the completion of the regulatory processes and thereafter will finalize Takatso’s acquisition,” the Department of Public Enterprises said in a statement on Friday. “We condemn the deliberate misinformation and casting of doubt about the transaction and regulatory processes” since Novick’s resignation, it said.