Comair latest: Suspension LIFTED, Kulula, British Airways flights resume

Comair failed to secure funding. Photo: Facebook

Comair wings to be clipped permanently – rescue practitioners no longer believe it can be saved

Comair failed to secure the cash needed to resume operations. The company’s business rescue practitioners no longer believe it can be saved.

Comair latest: Suspension LIFTED, Kulula, British Airways flights resume

Comair failed to secure funding. Photo: Facebook

Comair grounded its Kulula and British Airways flights a week ago due to cash constraints. In a notice on Thursday, 9 June, the Business Rescue Practitioners (BRPS) said the necessary funding could not be raised.

COMAIR FAILS TO SECURE FUNDING

The notice said the requisite funding could not be raised for Comair to continue with its operations.

“Accordingly, the Company’s joint business rescue practitioners give notice herewith that they no longer believe that there is a reasonable prospect that the Company can be rescued.”

When flights were grounded on the evening of 31 May, the Comair practitioners believed that it would be able to secure the necessary cash injection.

“Comair is inherently a viable business. We have the two of the best airline brands in the country. We are on track to carry over 4 million passengers this year and generate R5.3 billion in revenue.

“We have excellent staff, a modern fleet, good sales and distribution channels and low operating costs, which is why we believe the funding will be secured,” said Comair CEO Glenn Orsmond.

The notice released on Thursday does not mention liquidation. However, according to finance outlet Fin24, the BRPs previously indicated that liquidation would follow business rescue.

Comair has been in business rescue for the last two years.

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