Poor business decisions clipped Comair’s wings, analyst says

Flight operator Comair is on the brink of collapse due to poor business decisions by the its management, according to aviation analyst Phuthego Mojapele.

Mojapelo said the current financial problems at Comair could be attributed to the management ignoring advice to maintain its aircraft.

On Tuesday night, Comair indefinitely suspended all its British Airways and Kulula.com flights, citing financial constraints. The decision left its customers stranded and frustrated with some running from one counter to the next trying to find alternative flights.

In March, Comair flights were temporarily grounded by the SA Civil Aviation Authority due to safety concerns after a series of midair emergencies.

Mojapele said Comair’s decision to purchase max series aircraft in 2018 had led to the financial distress they found themselves in.

“Between 2018 and 2019, the management of Comair bought 10 Max series aircraft [from Boeing]. They spent a lot of money they did not have. This was ill-advised. They should have increased their capacity by leasing aircraft. This is much better because they can return the aircraft if they can no longer use it, instead of permanently buying aircraft with limited resources,” said Mojapele.

“They also bought an A320 simulator from Airbus. Why did they buy this when they are not operating in the Airbus space?”

Mojapele said the management of the airline ignored advice from maintenance, repair and operations companies to fix its aircraft.

“The maintenance findings that came out when Comair was grounded show that the airline’s engines were not serviced, hence the aircraft experienced problems while flying,” said Mojapele.

Comair CEO Glenn Orsmond said the airline suspended its flights because it did not have sufficient funds to run them. 

“We have a liquidity problem. We have a solid, sound business... We are profitable and solvent. Our problem right now is that we have a liquidity squeeze on cash and we are working with our stakeholders to try and resolve that,” said Orsmond. 

Several passengers at OR Tambo International Airport were left frustrated by the cancellation of their flights.

Thabo Matlou, 48, was meant to board a flight to Cape Town at 8.45am on Wednesday but he only became aware at 7am when he arrived at the airport that his flight was cancelled.

Matlou paid R2,200 for his ticket that included a return trip on Thursday.

“I have an important business meeting tomorrow [Thursday]. I do not know how I am going to get to Cape Town. I went to the customer care centre to speak to the workers there to ask for a refund and they gave me an email address to send my refund request to. They said it will take three to four weeks for the process to be finalised. I am disappointed. These people did not even make an effort to help me,” said Matlou.

Susanna du Plessis’s flight to Durban was also cancelled, leaving her in tears as she was on her way to see her son, who has been diagnosed with cancer.

“My son is going for his first appointment to the doctor tomorrow. I am sad that I am not going to be able to see him. How am I going to see him?” said Du Plessis.

At the airport, the Kulula.com and British Airways check-in counters were closed but their customer care centres were open.

Orsmond said: “We are asking for passengers to apply for the refund from Comair. We will process the refund as fast as we can so that they can be able to acquire tickets on other airlines, so that they can continue their journey today [Wednesday].”

Orsmond said he did not know when Comair would resume its flights.