Comair has secured the credit it needs to start operating again, plus regulatory approval for the investors to proceed.
This is according to a media release issued October 31. The airline has also secured approval from the Competition Commission for the merging of Comair and SA Bidco, which has effectively acquired Comair. The Competition Commission’s approval is subject to two conditions:
- Comair may not initiate further retrenchments as a result of the merger for three years from the flying start date, (unless retrenchments are lawfully effected for operational requirements unrelated to the merger).
- Employees who are forcibly retrenched within the current process will have a recall period of three years should jobs become available and these employees be suitably qualified for the roles.
Comair ceo Wrenelle Stander welcomed the recent, significant developments. She said: “We knew that the business rescue process wasn’t going to be easy, however, when the lockdown grounded us and we weren’t able to earn any revenue it was the only way to save the company and most of the jobs. It is very reassuring that we took the right decision at the time.”
Glenn Orsmond, representing the Comair Rescue Consortium, said he was confident that Comair flights would be back in the air in December. He said precise timings and details would be announced in due course.
“We’re immensely grateful for all the support we’ve had from everyone to reach this important point. We’re all looking forward to welcoming the flying public back on board again and for Comair to help rebuild the aviation sector and play our part in South Africa’s economic revival.”
Flights are due to start in December, and Comair anticipates that the business rescue process will be concluded by March 31 2021, after which Comair will continue to operate as a sustainable business.
