Embattled state-owned entity South African Airways (SAA) would consider an equity partnership, Public Enterprises Minister Lynne Brown said on Thursday.

Asked about the possibility of an equity partnership, she told reporters in Cape Town that SAA was investigating all its options amid an attempt to implement a turnaround strategy.

"Eventually we should come out of this process with a different business model for the two airlines," she said.

"We should come out with a different financial model for how we fund the airlines going forward."

Brown said SAA was technically not a going concern. While it was making money because people were flying, the money was insufficient.

She announced the appointment of an interim board on Thursday following two special general meetings, in which six resignations were adopted.

Cabinet retained two members of the board, chairwoman Duduzile Myeni and Yakhe Kwinana, and appointed Dr John Tambi and Anthony Dixon.

SAA CEO Monwabisi Kalawe and CFO Wolf Meyer would continue serving on the board.

Brown said her intervention was aimed at stabilising SAA, which has been loss-making for the past few years.

"The board is an interim board and the intention of the board is for it to take us past this period."

She said the interim period would allow her to understand exactly what was happening at the airline and allow for a turnaround strategist to be appointed.

The goal of the strategist, which she envisioned as more a company than a person, would be to create stronger financial sustainability.

"The essence is SAA should be living off its balance sheet."

She said airlines across the globe suffered the same problem and that some were just more subsidised than others.

The entity had to consider whether to cut routes if they were making losses.

"That decision isn't a decision that only I will be able to make," she said.

Two years ago, Treasury approved a R5-billion guarantee for SAA.

Asked whether SAA would have enough funds to sustain itself until the next budget speech in February, Brown said it would have to "try to survive".

While the minister said the entity was a strategic asset contributing to tourism and employment, there was also an element of pride in retaining a national airline.

"I am sure it is pride to have your flag flying high."

On Wednesday, Finance Minister Nhlanhla Nene said State-owned entitites would not be bailed out.

Instead, they would be restructured to make them financially sustainable, he said while tabling the Medium-Term Budget Policy Statement in Parliament.

"Over the medium term, any funding of state-owned companies will be contingent on the implementation of sound restructuring plans with strong government oversight.

"Given fiscal constraints over the next two years, capitalisation will only be funded by the sale of non-strategic state assets, and will not be drawn from tax revenue, or added to the debt of national government."

Brown and Nene were leading an inter-ministerial task team, which included directors general, focusing on the future of the airline.

She said SAA's future was so important that these directors were meeting weekly.