KHAYA SITHOLE: Comair’s business rescue was right on time, as was its new board
The notion that the process should be a last resort is thankfully not a mistake the airline’s directors made
Just eight months ago Comair released its results for the financial year to end-June 2019. The highlight was that earnings had increased by over 175% and headline earnings per share by 184%. For any company operating in a country with weak economic fundamentals, such performances were remarkably impressive. But hidden beneath the veneer of great profits was the matter of the correlation of the company’s performance with the economic environment where its primary operations are based. There the picture looked rather different.
The 2019 results reflecting a profit of R897m were presented in the aftermath of the conclusion of a 14-year conflict over competition involving SAA. Comair won the case and was awarded R1.1bn plus R168m in interest. Without this settlement Comair’s profits had in fact declined by 82% in the 12-month period. In addition, the airline had to deal with the grounding of the Boeing Max 737 fleet, which was being subjected to an international lockdown after two...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.