Comair‘s business rescue practitioners have told creditors and employee representatives that the company is unlikely to start operating again before November this year. The practitioners say the airline requires a substantial cash injection to resume operations.
The airline says the cash is needed to secure fuel suppliers and cover other costs.
The business rescue practitioners are in discussions with funders to recapitalise the airline in order to resume domestic passenger operations by 1 November.
More than 30 potential funders had been contacted and six are progressing with further discussions.
Operators of Kulula and British Airways, Comair announced in May that it would go into business rescue. At that time the company had already reported a half-year loss of R564 million. Airlines are only expected to resume full domestic operations when Level 2 of the national lockdown goes into effect.
In the video below, is a discussion on the impact of COVID-19 on the aviation industry:
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