Page 42 - World Airnews Magazine May Edition 2021

COMMERCIAL

COMAIR DELISTED

By Andrew Curran

it was going into a formal business rescue and/or able to take the necessary and ap-
programme. propriate steps to do so with the objective

outh Africa’s Comair has delisted “Comair remains solvent,” said CEO of reinstating its listing.

Sfrom the Johannesburg Stock Ex- Wrenelle Stander at the time. “(Comair) can now apply for funding in
“This is a necessary process to ensure
change as part of its restructuring efforts. a focussed restructuring of the company the sum of R100 million ($6.7 million) under

the COVID-19 Loan Guarantee Scheme put
Stocks in the airline had been publicly takes place as quickly as possible so we in place between the South African Reserve
trading on the exchange since 1998. But can take to the skies again as a sustainable Bank and large commercial banks. The

with a consortium of seven companies business and play our part in the county’s COVID funding is critical to the Company’s

owning 99% of the shares and the airline airline industry.” survival.”

attempting to fly its way out of financial With South Africa having recorded over
In December last year Comair resumed

difficulties, the delisting surprised no one. flying. The airline also re-introduced do- 1.5 million cases of COVID and some highly

The recent delisting clears the way for mestic British Airways’ routes it previously infectious strains emerging from the area,

Comair to apply for a (US) $6.9 million loan operated. Comair operates two brands, travel to, from, and within the country has
under the South African government’s loan the low-cost carrier Kulula brand, and the been restricted for much of the past year.
guarantee scheme. Comair can use that full-service British Airways brand. The South African government now

money for operational expenses, such as The airline uses the British Airways brand permits some travel into and around South

salaries, rent and lease agreements, and under license. In the lead-up to resuming Africa. That includes travel to over 20 air-
contracts with suppliers. flights, Comair found new backers who ports within South Africa.

The loan is not available to listed pumped cash into the airline in exchange “We were hurt by the lockdown during
companies. for a 99% ownership stake in Comair. the second wave of COVID-19 infections in

Simple Flying has extensively covered the South Africa from the beginning of January
problems facing Comair and the South Afri- DELISTING DECISION MADE, until mid-February. But we are seeing

can aviation industry. The airline industry in COMAIR KEEPS FLYING a strong pickup in traffic in March’ with

South Africa and across much of wider Af- According to the latest status report on the load factors of over 75%. We are currently
rica was in trouble before the onset of the ongoing business rescue, Comair was asked operating 17 aircraft,” South African news

global travel downturn last year. COVID-19 by the Johannesburg Stock Exchange to site fin24 has reported Comair CEO Glenn

brought the structural and financial prob- decide whether to stay listed or not. Orsmond as having said.
lems dogging African airlines like Comair The status report of March 31 recorded Comair will stay a public company. The
into the spotlight. In March 2020, Comair the following; controlling stockholders will soon make an

suspended its flying. “(Comair) is not in a position to either offer to purchase the remaining 1% of stock

In May last year, the airline announced comply with the JSE Listing Requirements held by minority shareholders. Q

World Airnews | May 2021
— 42 —