SAA enters alliance deal with Ghana Airways

10:40 a.m. Mar 25, 1999 Eastern

By Ellis Mnyandu

JOHANNESBURG, March 25 (Reuters) - South African Airways (SAA), Africa's largest air carrier, signed an alliance agreement with Ghana Airways on Thursday to try bolster its presence in Africa ahead of its partial privatisation in June.

SAA Chief Executive Officer Coleman Andrews said the alliance -- part of SAA's ``Networking Africa'' strategy -- entailed joint operations by the two carriers through Accra and Johannesburg, reciprocal lounge access, frequent flyer programmes and joint marketing exercises.

``We've been working quietly but diligently on networking Africa and today we've reached a milestone,'' Andrews told reporters at the signing ceremony in Johannesburg.

He said the alliance would also enable SAA to bolster its existing services to West Africa, where it currently flies twice-weekly flights to Lagos, Dakar and Accra.

William Meaney, SAA's executive vice president and global network strategist, said the agreement also envisaged linking West and East Africa for flyers on both carriers.

``Networking Africa is driven by among other things, the hope that Entebbe, in Uganda, will serve as our East African hub as we're in the middle of being shortlisted as one of the bidders for Uganda Airlines,'' he told reporters.

A joint bid by SAA and Ugandan-based SA Alliance Air for a 49 percent stake in Uganda Airlines is one of four bids currently being considered by the Ugandan government in its planned sale of the state carrier.

Ghana Airways Chief Executive Emmanuel Quartey said: ``For us this alliance marks a milestone in African aviation history...and we believe it will enhance the profitability of both Ghana and SAA and enhance economic cooperation on the African continent.''

SAA -- part of South African transport parastatal Transnet -- is offering a 20-25 percent stake in the airline to potential strategic equity partners and hopes to finalise a deal by June.

Among the carriers said to be keen for a slice of SAA are Germany's Lufthansa with partner Singapore Airlines, British-based Virgin Atlantic, Royal Dutch KLM and Swissair.

Meaney said the airline was also busy evaluating the possibility of adding Atlanta as its third U.S. destination.

SAA, which has around 10,000 employees worldwide, currently flies only to Miami and New York in the United States.