JOHANNESBURG, June 1 (Xinhua) -- All flights operated by Comair, the company that operates British Airways and Kulula flights in South Africa, have been grounded as of Wednesday, according to a company statement.
"Comair has announced that regrettably it is obliged to suspend all British Airways pending successfully securing additional funding," it said.
After failing to secure more funding by May 31 for the company that is still undergoing business rescue, it was forced to cease operations for now. Local travelers, as well as international tourists, are stuck at airports due to this.
"The company's business rescue practitioners (BRPs) have advised that the process to raise the necessary capital is in progress and that there is reason to believe such funding may be secured. Once received, the airline will be able to recommence operations, but regrettably, under these circumstances, the practitioners have no choice but to voluntarily suspend all scheduled flights until the funding is confirmed," it said.
Comair has operated smoothly for many years and was placed into business rescue during the pandemic.
According to Comair's CEO Glenn Orsmond, the company is "inherently" viable, carrying about four million passengers a year.
Dawie Roodt, the chief economist of the Efficient Group, said the business rescue could cause customers to lose confidence in the company.
"I suspect they did not secure enough funding during their previous business rescue process...The aviation industry is a cutthroat business globally and airlines are sensitive to changing environments," he told Xinhua. ■