Comair eyes subsidiary business

Comair’s recent annual results showed that it’s grown income from non-airline businesses to 20% of total earnings.

This is a delivery on its diversification strategy aimed at mitigating low margins and depressed conditions in the industry.

CEO Erik Venter doesn’t foresee a meaningful improvement in the airline market in the immediate future and the business will remain focused on containing costs and extracting efficiencies.

In the reporting period, Comair limited overall cost increases to 1%, despite a 5% increase in the rand price of fuel and inflationary pressure.

The group plans to grow non-airline income to 50%, comprising pilot training, catering and a travel business.

Venter says the growth potential is unlimited. Comair might in a few years consist of several diversified businesses plus a smaller airline component.

Food Directions caters for Comair’s own needs and supplies products to several retailers. It operates from the Anchor Park industrial park on the East Rand. It’s also constructed its own offices, catering facilities and storage at Cape Town International Airport.

The group recently launched its first small concept lounge at Lanseria and will roll out this concept at other small airports.