The delisting will allow Comair to apply new focus on growing the business.
Comair CEO Glenn Orsmond said in a statement that the airline is focusing on growing the business. “We were hurt by the lockdown during the second wave of Covid-19 infections in South Africa from the beginning of January until mid-February, but we have seen a strong pick-up in traffic in March with load factors of over sevenpercent.”
The airline is already operating all the domestic routes it offered before the Covid-19 lockdowns started and, on a regional level, has started resuming flights to Harare and Victoria Falls. “So far April is looking good and we see the overall domestic leisure market travel as similar to before the lockdown,” Glenn said. “Where demand is lacking, however, is in business travel and the international market. We did see local business travel increase though and it is currently at about 30 percent of levels before the lockdown.”
He added that the company needs to be ready for when the international markets return, hopefully by June.
These plans come as Comair delists from the JSE as part of its business rescue plan. “We have not, nor can we, meet the listing requirements or the associated costs,” explained the airline’s business rescue practitioners.
The delisting will also allow Comair to apply for R100 million under the Covid-19 Loan Guarantee Scheme, which is not available to listed companies.
