Comair grounded indefinitely after failing to raise funds to stay operational

The airline operator had been on the cusp of liquidation due to cashflow challenges.

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JOHANNESBURG - Comair has been grounded for good.

The airline operator's business rescue practitioners (BRP) confirmed this on Thursday, citing a lack of funding.

Comair - whose subsidiaries are Kulula.com and British Airways - had been on the cusp of liquidation due to cashflow challenges.

Moreover, it had to be placed under business rescue to find a solution to its financial woes.

"Regrettably, the requisite funding could not be raised in order for the Company to continue with its operations.

"Accordingly, the Company's joint business rescue practitioners give notice herewith that they no longer believe that there is a reasonable prospect that the Company can be rescued," said Comair's BRPs on Thursday.

Workers affiliated to worker's union Numsa held a meeting with the company’s management and BRPs this week.

The workers were told that the company was yet to secure an investor and could face liquidation in a matter of weeks.

Workers expressed their uncertainty over the airline operator's fate had them fearing for their jobs in an already tough economic environment in South Africa.

This was the second stakeholder meeting with Comair following the airline’s announcement of the immediate suspension of all its flights until it managed to secure funds to resume operations amid serious liquidity issues.