R1bn win for the underdog

Just when you thought Father Christmas had stuck his sleigh into storage and turned the reindeer out to pasture, here he comes thundering down Comair’s corporate chimney brandishing a cheque large enough to put a festive smile on anybody’s face. A settlement to the tune of R1.1bn plus interest and legal costs brings to an end a 14-year spat with SAA over the latter’s anticompetitive antics. It represents a big win for the underdog over the state-sponsored behemoth.

A comparison between the two organisations doesn’t make for comfortable reading for the ever-generous taxpayers who are going to end up getting stiffed with the bill. Comair is a high-quality operator with an unparalleled 72-year track record of profitability in this notoriously difficult industry. SAA, meanwhile, has suffered more than most from what we could charitably describe as the eccentric recruitment policies of the Zuma era, resulting in constant waving of the begging bowl in the direction of the fiscus which is getting more than a little bored with the constant bailouts.

It would be hard for Comair not to enjoy a bit of schadenfreude as its once-mighty rival stumbles from mishap to debacle, and the announcement that it is planning to move its maintenance from SAA Technical to a new partnership with Lufthansa amounts to another well-administered slap in the face for SAA. Comair continues to invest in its core airline business while diversifying into other niches within the broad travel umbrella. It might pay SAA to take a good look at its rival to get some inspiration.

It might pay SAA to take a good look at rival Comair to get some inspiration