OPTION 1

Preamble

Since there is a need to have a reliable air transport capacity and capability in South Africa to support our rapid developing economy; and

Since it is important to the South African Government to promote air links to the Country's main business, trading and tourism markets, both within the African region and other international destinations; and

Since South African Airways already exists as a strategic asset to attain such objectives; and

Since the South African Government wishes to preserve its ability to contribute to key domestic, intra-regional and international air linkages by taking such steps that would enable it to exercise control over South African Airways directly;

OPTION 2

Preamble

Since the airline industry is a volatile industry and a need has been identified to assist South African Airways to strengthen its balance sheet; and

Since such volatility and need are to be balanced with the Government's objective to retain South African Airways as a strategic asset that would enable the State to preserve its ability to contribute to key air linkages that would support domestic and continental economic growth; and

Since the said key objectives can best be achieved by enabling Government to exercise control over South African Airways directly;