Kulula operator Comair enters business rescue

Hanno Labuschagne

Hanno Labuschagne

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Kulula operator Comair enters business rescue

Kulula operator Comair has announced it will enter business rescue due to the impact of the COVID-19 lockdown.

The announcement comes on the back of a half-year loss of R564 million in its 2020 fiscal year. The listed airline company also oversees British Airways operations in South Africa.

Comair CEO Wrenelle Stander said they face an unprecedented situation.
 
Dlamaqhinga said:
What government was supposed to have done?
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Tax breaks, the promise of funding to compensate days of no operating, clearer indication and business plan to get the economy running again, etc.

Seriously, this is a privately run operation, which will do all things by the book to make sure of passenger safety throughout the process. I am fairly certain that they could operate profitably with limited numbers in flight and limited numbers of flights. There is no certainty, that we know of, or guidelines as to when the different sectors of the economy will be opened. The protracted closure does the economy no good.

The local aviation industry will be non-existent in the near future. With no options, should Comair not successfully restart, has the potential to create a monopoly and/or open the way for a foreign-run business ruling the roost.
 
Yeah government is to blame, not the virus. Let's blame the government for other world airlines and business going under. Kudos...
 
Ehhh I have R3000 worth of flights with BA/Comair

:eek:
 
This is huge... The future of world aviation is in jeopardy and the SA market couldn't escape. Pus that R700m it was owed by SAA that never came through
 
Dlamaqhinga said:
What government was supposed to have done?
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genetic said:
And other airlines around the world that are going under? Should we blame the ANC for that too?
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zulucat said:
Yeah government is to blame, not the virus. Let's blame the government for other world airlines and business going under. Kudos...
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So predictable ........ you didn't mention anywhere else in the world so how is it the governments fault! Weh!
 
Mephisto_Helix said:
So predictable ........ you didn't mention anywhere else in the world so how is it the governments fault! Weh!
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They have no plan. With all the modeling capacity available to a government I would assume that many paths could be mapped out with reasonable accurately and with their probablility. Then people could plan accordingly.
 
Mephisto_Helix said:
So predictable ........ you didn't mention anywhere else in the world so how is it the governments fault! Weh!
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The reality is that a lot of the businesses that are going under 'due to the lock down' were in the red even before the lock down started, it's just very easy to scapegoat the lock down you know, because people shy away from accountability, Edcon is another shining example of a badly run business that finally succumbed to decades of failed management. Now back to Kulula or Comair, they reported a loss before Covid-19 started. Resilient businesses which aren't run by money-grabbing bosses who siphon off capital to fund their lavish lifestyles, will stand the test of time...
 
Dlamaqhinga said:
What government was supposed to have done?
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Imagine they had the money to actually bail out legit companies instead of throwing billions into what was basically a slush fund.
 
What does the last paragraph mean when they say there will be no charge to change flights with Comair before November 2020. Is that for international flights only, if there isn't a Kulula? Or is the business rescue a pause from creditors and they can resume later? I'm confused.
 
SAA - that should close.

COMAIR - would be a shame if they do.

Having said that, domestic and international travel are virtually non existent.

The cost of flight has rocketed due to the seating layouts having to change - alot of airlines are not allocating the middle seat for now.

Eish, what can they do?
 
Wasn't they the one big mouthing saying how much better they are than SAA?

Turns out they had no cash in the bank.
 
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