AviationTop Stories
GBO_Comair South Africa-image

Cash-starved South African carrier Comair to shut down

Comair will not resume operations without adequate resources.

The pandemic wreaked havoc on the aviation industry, forcing dozens of airlines to shut down as flight bookings ceased. On May 5, 2020, Comair chose business rescue to safeguard its stockholders from additional financial loss. Since then, the airline has remained in financial difficulty without signs of improvement.

Comair, a South African airline, halted all flights citing inadequate funds. British Airways (a franchise) and Kulula are the two brands under which the airline flies.

The airline has stated that it will not resume operations until it receives adequate money.

According to the statement posted by Comair’s administrator, the process to raise the necessary capital is underway, and there is good reason to anticipate funds.

Comair filed for voluntary business rescue — a mechanism comparable to bankruptcy protection – in May 2020 at the height of the pandemic to restructure the company.

South African aviation inspectors halted Comair’s flights for five days amid safety concerns, delivering the company a bloody blow.

The new ban could result in a 40% reduction in airline capacity in Africa’s most industrialized country, potentially raising travel fares on the main route between the financial hub Johannesburg and touristic Cape Town.

Related posts

Fintech startup Currencycloud raises $80 mn led by Visa

GBO Correspondent

Brazil launches blockchain platform PIER for foreign banks

Bahrain strives to increase FDI

GBO Correspondent