Comair: we may only fly by October

Suren Naidoo

Comair, the owner of low-cost airline kulula.com and operator of British Airways local flights in South Africa, has posted an ominous cautionary Sens announcement noting that it may only start flying again as late as October or November due to lockdown restrictions.

“In terms of [the] government’s latest requirements for the gradual upliftment of the lockdown in terms of a five-level risk assessment process, it appears that restricted air travel will commence at risk level 3, full domestic air travel at risk level 2 and regional and international air travel at risk level 1,” the JSE-listed aviation group noted.

“The level of the prevailing Covid-19 risk will determine the progression from risk level 5 to risk level 1. In terms of the government’s requirements, it is not anticipated that Comair will commence operating prior to October or November 2020.”

All local and international commercial flights into SA, have been grounded since March.

Comair, Flysafair, SA Airways and other domestic and international airlines worldwide are caught in the midst of the biggest aviation industry crisis in history, with lockdown and curbs to air travel globally.

Comair noted that the entire world had been affected by the Covid-19 outbreak and lockdown measures. The group said that it “welcomed the decisive action taken by government in curbing the impact of Covid-19” on all South Africans.

Comair conceded that while the group had experienced financial headwinds prior to the Covid-19 outbreak, the five-week lockdown had caused the situation to “rapidly deteriorate”.

It said it now “finds itself in a very difficult financial position” and advised shareholders to exercise caution when dealing in the group’s securities.

“Throughout this challenging and uncertain time, management has been working tirelessly to secure and manage the business effectively by implementing a turnaround process,” the group added.

It said the plan focuses on cash preservation, cost cutting, disposal of non-performing assets and a strengthening of the balance sheet.

However, since the imposition of the lockdown, there has been no revenue generated by any of its business divisions.

Moneyweb

Employers have been scrambling to submit claims under the Unemployment Insurance Fund (UIF) in a format and manner that meets the ever-changing directives published by the department of employment and labour.

Many enterprises have voiced their frustration with the bureaucracy, lack of certainty, lack of consistency and lack of access to websites and competent people who can assist them in getting funding from government’s Temporary Employer/Employee Relief Scheme (Ters).

“It has been horrific,” says businesswoman and restaurateur Marina Appelbaum. “We know we are not going to be paid in time for our staff to get their money. We know. It is outrageous. We have been paying UIF contributions every month.”

Appelbaum has submitted applications for all 150 staff members