Johannesburg – Comair, the South African operator of British Airways flights, filed for liquidation on Thursday after its bankruptcy administrators failed to raise enough money to keep it in the air.
The administrators have “lodged a court application to convert the business rescue proceedings into liquidation proceedings”, the company said in a statement.
“Regrettably, the requisite funding could not be raised in order for the company to continue with its operations,” the administrators said in a separate statement.
“Accordingly, the company’s joint business rescue practitioners give notice herewith that they no longer believe that there is a reasonable prospect that the company can be rescued.”
ALSO READ | Comair grounds flights as funds run out
The carrier, which also operates budget airline Kulula, grounded its planes on June 1 as the coffers ran dry.
In May 2020, at the height of pandemic lockdowns, Comair filed for voluntary business rescue – South Africa’s version of bankruptcy protection – in order to restructure the company.
By February this year, the company had regained a 40 percent market share and resumed most flights, but problems remained.
South African aviation officials suspended Comair’s flights for five days in March over safety concerns.
The airline has also struggled due to its order of eight Boeing 737 MAX planes. One was delivered when the planes were grounded in 2019 following two fatal crashes.
Comair has fought a US court battle to cancel the order.
The company has been flying since 1946.
Follow African Insider on Facebook, Twitter and Instagram
Source: AFP
Picture: Getty Images
For more African news, visit Africaninsider.com
