Comair Ltd., the South African operator of IAG SA-owned British Airways aircraft, has suspended all flights due to a lack of finances and is awaiting additional investment.
According to a statement released late Tuesday evening, the carrier, which also operates the domestic low-cost airline Kulula, has ceased all ticket sales with immediate effect. "The funding may be secured," Comair said of the company's administrators.
The suspension will result in a 40 % drop in airline capacity in Africa's most industrialised country, and might lead to a repetition of the turmoil that enveloped airports earlier this year when the country's regulator grounded Comair to address safety concerns.
The suspension may result in increased pricing for tourists and businesses flying on the country's main route between Johannesburg and Cape Town—home to stunning beaches and corporations like Naspers Ltd.
During the Covid-19 crisis in 2020, which grounded much of the world's aircraft fleet, Comair was placed into a form of bankruptcy protection known as business rescue. Despite the fact that the airline was able to find finance and begin flights later that year, the need for capital has resurfaced.
According to the company's website, Comair has a fleet of 26 Boeing Co. jets, the majority of which are 737-800s.
