Who is Comair buying?

Who is Comair buying?SPECULATION is
rife about which
company Comair
is buying, following the
airline’s announcement to
shareholders that it had
“entered into negotiations
to potentially acquire
a business, which, if
successfully concluded, may
have a material effect on
the price of the company’s
securities”.
While the airline is keeping
mum on the issue, rumours
are rife among the trade on
which business the airline
group is looking to purchase.
“My money would be on SA
Airlink – if it is an airline,”
says Kirby Gordon, FlySafair’s
vp of sales and distribution.
“It’s quite unlikely to be
Mango because, if it were,
they would have had to
make an application to the
Competition Commission,
which is a public application.”
Kirby adds that Mango’s
market share is too
substantial for a company like
Comair to purchase, without
both companies making their
intentions public.
FlySafair itself has released
a statement saying it is not
for sale and that the recent
Comair acquisition has
nothing to do with it.
A local aviation expert, who
prefers to remain anonymous,
says for Comair to acquire
Mango, it would require
the government – as sole
shareholder – to approve
the transaction. He adds
that government is only
interested in a minority equity
shareholder and that this
would not be of strategic
interest to Comair as it
would not be able to manage
Mango, which would still be
a direct competitor to its own
kulula.com airline.
“Smaller carriers such as
Airlink, which have a route
network that does not overlap
with Comair, are more likely
to be a target,” he says.
Rodger Foster, ce and md
of Airlink, has responded to
the rumours, saying they are
“entertaining”. He says that
talk “happens all the time” in
the industry but says “if there
is anything material [to the
discussions] – no.” “Up until
now there are no serious
discussions between Comair
and Airlink.”
Rodger adds that as
a JSE-listed company,
Comair’s decision to put up
a cautionary announcement
regarding its intentions shows
that the company is definitely
serious about its negotiations
with another company.
Meanwhile, Cemair has
also denied it is in talks of
this nature with Comair, and
Fly Blue Crane coo, Theunis
Potgieter, told TNW: “We
have no comment on this
transaction.”
In a Future of Aviation talk
at the Gordon Institute of
Business Science earlier
this year, Comair ceo, Erik
Venter, said government’s
plan to encourage privatesector
participation in
some components of SAA
presented Comair with
“interesting opportunities”.
He said the company would
consider investing in two of
SAA’s divisions, namely the
aircraft maintenance arm,
SAA Technical, and catering
service, Air Chefs, should the
prospect arise.