In the latest blow to the struggling airline, Comair said, late last night, it would be suspending all British Airways and Kulula.com flights as it sought additional funding to resume operations while navigating its business rescue process.
The company said it had no reason to believe it could not raise the necessary capital to eventually resume operations.
“Once received the airline will be able to recommence operations, but regrettably under these circumstances, the practitioners (administrators) have no choice but to voluntarily suspend all scheduled flights until the funding is confirmed,” it said.
Ticket sales for both BA and Kulula flights have been suspended as well.
This is the latest hurdle for Comair after it faced difficulties earlier in the year when the South African Civil Aviation Authority suspended its operating license due to safety concerns on some of its aircraft.
Comair has been one of South Africa’s business success stories and had posted a profit every year of operation since inception in 1943 until the Covid-19 pandemic hit in 2020 and the company was forced into business rescue.
The price of fuel increases today but in a joint statement released yesterday by the treasury department and the mineral resources and energy department, government extended the fuel levy reprieve, which will be reduced in two phases over the next two months.
“The first phase will involve the reduction of the levy by R1.50 per litre for the first month, from 1 June 2022 to 6 July 2022. This is a continuation of the relief measure introduced by the government in April and May, when it sought to shield consumers from the economic stress of surging fuel prices,” reports Daily Maverick.
The second phase will see the fuel levy reduced by 75 cents a litre from 7 July 2022 to 2 August 2022.
Here’s a round-up of what we’re reading:
SA Business
Comair apologises to customers, says it did everything to avoid flight suspensions – TimesLIVE
Fuel price increases will lead to more problems for the people of South Africa and the country – Political parties – SABC
Despite ‘green shoots here and there’, Post Office needs cash after revenue nearly halves – Fin24
Global Business
Asia’s factory activity slows in May as China COVID curbs weigh – SABC
EU leaders downplay chances of Russian gas ban – Fin24
Cost of living: Lessons from history about how we spend – BBC
Markets
Asian markets mixed on inflation worry, oil edges up after drop – AFP
Global stocks fall, US yields rise as oil prices reach new highs – SABC
Bonds tremble as inflation hits new records – SABC
Tech
South Africa’s Talk360 raises $4M to build single payment platform for Africa – Tech Crunch
Facebook and Instagram’s parent company will change its stock ticker to META on June 9th – The Verge
Chinese Firm That Accused NSA of Hacking Has Global Ambitions – Bloomberg
(Image: Wikimedia Commons)
