Comair is one of three airlines in South Africa to have reached a brink of collapse in a period of one week.
South African passenger airline, Comair, has gone into administration.
That was after the airline suffered a whopping $30 million loss in the first quarter of 2020.
The airline says it entered into administration on May 5, 2020.
It became the third airline in South Africa to hit the brink of collapse within a period of one week in the wake of coronavirus.
Comair is a franchise of British Airways.
Due to its bad financial situation, the airline indicated that its group has stopped share-trading
Comair says while it had suffered some financial turbulence in recent past, the COVID-19 crisis brought matters to a dire state.
According to report, Comair has operated no passenger flights due to the lockdown in South Africa since March 26, 2020.
Its Chief Executive Officer, Wrenelle Stander, says in a statement from the airline that
“The only responsible decision is to apply for business rescue.”
The halt of all its operations completely eroded the company’s revenue base, while fixed overhead costs remained, he explained.
“Comair remains solvent and an important contributor to the South African economy. This is a necessary process to ensure a focused restructuring of the company takes place as quickly as possible so we can take to the skies again as a sustainable business and play our part in the county’s airline industry,” said Stander.
South African Express, a domestic and regional airline also owned by the state but managed independently from SAA, was declared on provisional liquidation on April 30, 2020 ? a month after suspending all operations.
On May 1, 2020, the country’s government rejected another payout for the country’s national carrier, South African Airways, announcing a new airline would be created instead.
Comair is an airline from South Africa, which operates scheduled services on domestic routes as a British Airways franchisee.