According to John Lamola, interim Chairman and CEO of South African Airways, confirmed today that the company is currently in talks with British Airways about the possibility of taking over the franchise of Comair, which operated domestic flights in South Africa until it ceased operations last May.
The British airline cancelled the franchise agreement under which it managed the company after Comair’s business rescue practitioners filed a court application to convert the company’s rescue process into a liquidation procedure.
Recently, the provisional liquidator said he understood that British Airways was looking for a new partner in the domestic air market. However, the company «does not comment on franchise agreements as this is commercially sensitive information», British Airways representatives told South African newspaper Fin24.
The road to ceasing operations
n 2020, Comair had closed the year with severe financial problems. Low demand for air travel, related to the health crisis, forced it to suspend all operations for eight months. A complex shareholder restructuring followed, forcing the company to cancel an order for eight Boeing 737 MAX aircraft.
In March this year, the company’s situation worsened when the South African Civil Aviation Authority (SACAA) decided to suspend its air operator’s certificate (AOC) after finding several safety issues. The measure also affected Kulula, its low-cost carrier. This was compounded by the fuel price hikes experienced in recent months. Each of these events had a negative impact on the business.
At its peak, the airline accounted for around 40% of the total South African domestic market. According to the Cirium platform, Comair accounted for 22% of the frequency supply in the national market at the time of the cessation of operations. Its fleet consisted of three Boeing 737-400s and nineteen Boeing 737-800s. It served five cities in the country.
