Comair still in 'trouble'.

[Boac]

https://travelradar.aero/comair-grounds ... -of-funds/

[TheGreenGoblin]

Really sad to see this but unsurprising, given recent events, not least the ZA-CAA intervention (politically instigated?) arising from unfounded "concerns" about maintenance after the bailout that arose due to financial shortfalls arising from the pandemic.

As a franchisee for BA, I wonder how this Gordian knot will untangle? There goes the link to St Helena as well.

A friend flies for Kulula. He is looking to get out of the industry completely. He is just 50 years old.

https://www.comair.co.za/media-room/com ... of-funding

[TheGreenGoblin]

Angry Kulula.com ticketholders have accused the airline’s operator of using a sale on Tuesday to raise capital a day before it grounded flights.

Comair — which operates Kulula and British Airways flights in South Africa — shocked the industry with the unexpected announcement on Tuesday evening that it had suspended all flights, effective immediately.

The company said it was forced to halt operations because it required additional funding.

“The company’s business rescue practitioners have advised that the process to raise the necessary capital is in progress and that there is reason to believe such funding may be secured,” Comair said.

It offered Kulula ticketholders affected by flight cancellations a full refund or credit for future bookings, while British Airways flyers would be accommodated on other airlines, where possible.

Comair’s airlines account for roughly 40% of the low-cost flight market in South Africa.

Several ticketholders vented their frustration at the decision, asking why Kulula continued to sell tickets while it was aware of its liquidity issues.

“You guys have known about this for some time now. So why did you continue to sell tickets knowing you couldn’t provide the service?” said Martin Stabrey.

Jacques Botha pointed out that Kulula had offered a winter warmer sale with up to a 30% discount on flights between 31 May 2022 and 30 November 2022.

Comair denied it was using the money raised from the sale to fund its operations in a response sent to MyBroadband.

It explained the sale had been planned and implemented a week ago.

“Once it became evident that our operations would need to be suspended, we closed the sale,” the company stated.

“Importantly, Comair does not receive the cash from sales until the air service is provided, so the cash is safe for passengers to claim a refund.”

Comair CEO Glenn Orsmond also told Bruce Whitfield’s The Money Show that the cash was safe and assured passengers would be refunded.

Poor corporate governance
The Institute of Directors in Southern Africa (IoDSA) also released a statement in the wake of the uproar, criticising poor corporate governance on the part of Comair.

“At this stage, it is not clear whether this was simply a disastrous example of the left and right hands not knowing what either was doing or an indication of a more serious ethical breach. But either way, irate customers are putting the blame on the board and the CEO,” said Parmi Natesan, IoDSA CEO.

IoDSA said the most likely scenario was that the marketing and sales team introduced the promotion to get more passengers into Comair’s planes to make up for revenue lost when the airline’s licence was suspended in March.

“Because the CEO and his or her executive team are responsible for day-to-day operations, the board would probably not have known the specifics — like the date of the sale — of this operational activity,” the institute stated.

However, it believes the senior management, as the link between the board and operational teams, should have briefed the relevant decision-makers to be cautious during a period of financial instability.

“Whatever the truth of the matter, one thing is clear: Comair has aggravated one of its most important stakeholder groups — its clients — and if it does return to service, the board will have its work cut out to repair a severely damaged reputation alongside all the other challenges it faces.”

https://mybroadband.co.za/news/motoring ... ights.html

[TheGreenGoblin]

not least the ZA-CAA intervention (politically instigated?) arising from unfounded "concerns" about maintenance...

There is a dreadful smell to my mind about the timing of the SA-CAA audit of LTMI back in March which resulted in the grounding of Comair and which was almost certainly a major factor in the recent financial shortfall at Comair that precipitated its current shutdown!

Comair press release at the time...

Move follows SACAA review of Lufthansa Technik
In a bid to prevent any inconvenience to its customers Comair has arranged for SAA Technical (SAAT) to take over the line-maintenance of its aircraft following a recent SA Civil Aviation Authority (SACAA) review of Lufthansa Technik.

Although Lufthansa Technik (LTMI) passed a routine SACAA audit in February of this year, the unscheduled review made a number of findings which need to be addressed within 24 hours or the Approved Maintenance Organisation (AMO) licence is suspended.

Comair currently uses both SAAT and LTMI to maintain its aircraft.

“Our priority at the moment is to restore a full, reliable flight schedule for our customers to ensure they can book and fly with confidence, which is why, in these extraordinary circumstances, we acted as soon as we were informed that the suspension was a possibility,” says Glenn Orsmond Comair’s CEO

While Comair respects and fully supports the SACAA in fulfilling its mandate and in so doing, ensuring that flight safety standards prevail in South Africa, Lufthansa and its technical maintenance facility ranks globally as one of the world’s most respected airlines and maintenance organisations. Lufthansa Technik is certified by more than 40 of the world’s foremost airworthiness authorities, has over 800 customers, 22 000 employees and more than 4 500 exclusive contracts globally.

As well as providing aircraft maintenance, repair overhaul and modification services, amongst others, for airlines it also serves VIP, special-mission and military client worldwide.

There is a significant negative history to the relationship between the sometimes-corrupt SAAT and Comair... vide.

https://simpleflying.com/comair-mainten ... 20services.

[TheGreenGoblin]

All roads lead back to SAA, government ineptitude, corruption, state capture and the ongoing machinations of the kleptocrats who have managed to capture parts of the magic money tree that is SAA and its state backed affiliates like SAAT! The whole SA aviation industry is disturbed and rendered less economic, viable or efficient by this colossal elephant sized mess in the middle of the proverbial room. Comair are not blameless but are operating in a very warped market.

[Woody]

Gone past in trouble now

https://www.news24.com/fin24/companies/ ... d-20220609

[Mrs Ex-Ascot]

Gone past in trouble now

https://www.news24.com/fin24/companies/ ... d-20220609

Yes I've just read that article, very sad but not surprisng really.