Comair goes under – with no prospect of bailout
South African airline Comair has failed to secure the funding needed to get it out of financial straits, and its corporate rescue operators (BRPs) say there is no longer a reasonable prospect that the company can be bailed out.
Comair, which operates Kulula.com and is British Airways’ national partner in South Africa, canceled all flights on June 1, less than three months after being blocked by the regulator for a series of security incidents that have required detours and emergency landings.
The group went into bailout operations in May 2020 after the Covid-19 era blockades, travel bans and rising fuel prices devastated the travel industry. The airline resumed flights in December 2020 while it was still in rescue operations.
The airline has voluntarily suspended since June 1 pending funding to resume operations.
Carrier administrators were in talks with an international lender with a presence in South Africa for funding, after its existing lenders and investors – a group of wealthy people who bailed out the airline in 2020 – said they were unwilling. to invest more funds.
Comair’s BRPs said this week that the process to raise the necessary capital was underway, however, these plans have now failed.
In an update to the status report released Thursday (June 9), the BRPs said it was unable to raise the necessary funding for the company to continue with its operations.
“As a result, the joint business professionals of the company bailout are hereby informing that they no longer believe there is a reasonable prospect that the company can be bailed out,” the BRPs said.