Comair’s failure to secure funding during its business rescue era left the company in provisional liquidation proceedings, resulting in a massive competitive spike for South African airlines.
While competitors like FlySafair have been reaping the benefits of Comair’s demise (Comair’s fleet which included popular airline Kulula, accounted for roughly 40% of the supply market) other prior-fleet members like British Airways are seeking new opportunities in SA.
British Airways has reportedly cancelled its agreement with Comair, as of Monday 1 August.
According to Fin24, the agreement between BA and Comair saw a cancellation trigger which the provisional liquidation brought about.
Reports inform that with the contract terminated, British Airways needs a new South African partner as Cloete Murray, provisional liquidator, indicated.
The want for a local partner comes from the massive influx of travellers that British Airways connects to and from South Africa, as the UK’s largest airline, as Simple Flying reminds.
Comair’s fall came despite their best efforts to rescue the business, including the Comair Rescue Consortium’s (CRC) R500 million investment for a 99% share of the equity in the company at the time.
Business Rescue Practitioner Richard Ferguson had previously said that they had done their “utmost to secure the funding.”
Since the provisional liquidation in June, flights in South Africa have certainly seen turbulence – especially in costs. Last month, flights between Johannesburg and Cape Town soared to R6000 for a ticket.
Picture: St Helena Airport