Covid-19 forces Comair into business rescue
Updated | By Gaopalelwe Phalaetsile
Comair has announced that the impact of the Covid-19 pandemic on the airline industry has forced it to file for voluntary business rescue.
The airline has not been in operation since March due to the ban on flights as the governments seek to control the coronavirus outbreak.
The airline reported a half-year loss of R564 million in February and this, says CEO Wrenelle Stander, left it with no other option to implement business rescue.
"These extraordinary circumstances have completely eroded our revenue base while we are still obliged to meet fixed overhead costs. The only responsible decision is to apply for business rescue.”
The airline will only be able to start operating when the country enters level 3 of the lockdown.
ALSO READ: Lesotho to lift lockdown as virus remains undetected
“Comair remains solvent and an important contributor to the South African economy,” says Stander.
“This is a necessary process to ensure a focussed restructuring of the company takes place as quickly as possible so we can take to the skies again as a sustainable business and play our part in the county’s airline industry.”
Shaun Collyer and Richard Ferguson have been appointed as the joint business rescue practitioners.
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