NOT ALL SUNSHINE
I dissed Comair directors for buying back shares at 300c and now they have issued a trading update that says HEPS will more than double, an awesome number. But my concern remains, the airline industry has never been a decent medium/long-term investment and while the sun is certainly shining on Comair right now, it is bound to set one day. This is not an industry to invest in, there’s a great deal of regulation and a surprising amount of competition (why do rich people want to start loss-making airlines?). This, coupled with costs beyond own control (such as the oil price), make for an investment option best avoided.