Comair To Enter Voluntary Business Rescue For Long-Term Survival

Comair said that it had decided to enter voluntary business rescue because it wanted to ensure the long-term survival of the company.

The aviation company owns Kulula.com and is the local operator for British Airways.

Comair, like other airlines, stopped operating in March after government declared a national state of disaster as a result of COVID-19.

The country is currently under level four lockdown restrictions and airlines are expected to resume full domestic operations under level two.

Comair said that while its business model was sound, it’s been interrupted by the lockdown restrictions.

The company said it didn’t expect to be back in business before October or November this year.

It said the best way to ensure the long-term survival of the company was to implement a business rescue plan and see if a return to operations would be achievable once the restrictions are lifted.

The company said this decision was prudent and in the best interest of shareholders.

EWN