Comair applies for business rescue


Comair said on Tuesday that it has filed for voluntary business rescue after a nationwide lockdown to curb the spread of the coronavirus forced airlines to suspend all commercial flights.

Comair, which operates the British Airways franchise in South Africa and owns budget airline Kulula, also said it has applied to the Johannesburg Stock Exchange for its shares to be suspended with immediate effect.

In February, Comair said it expected a half-yearly loss, hit by the grounding of Boeing’s 737 MAX aircraft.

Comair said it expected headline earnings per share (HEPS) to fall more than 170% for six months ended Dec. 31, which will result in a loss.

Comair, which settled a dispute with South African Airways (SAA) last year, also said that SAA was in breach of an agreement after failing to make payment in December and now owes an amount of 790 million rand.

Last February, South Africa’s competition body ordered SAA to pay Comair 1.1 billion rand in a dispute that dates back more than a decade involving SAA’s travel agent incentive schemes.