Kulula.com
South African airline Comair has failed to secure the necessary funding to pull it out of its dire financial crisis.
Its business rescue practitioners say in a statement that there is no longer any reasonable prospect that the company can be rescued and that they've lodged a court application to convert the business rescue into liquidation proceedings.
Some 1200 jobs are now on the line.
NUMSA spokesperson Phakamile Hlubi-Majola told AlgoaFM News they'd be going into a crisis meeting shortly to discuss the way forward for their members at Comair.
Comair operates Kulula.com and British Airways domestically in South Africa and cancelled all flights on the 1st of June as it had run out of funds.
In a status report update published on Thursday morning, the business rescue practitioners said the required funding could not be raised in order for the company to continue with its operations.
They added that they are of the belief that there is no longer a reasonable prospect that the company can be rescued.
BRP spokesperson Richard Ferguson says despite their best efforts they were unable to secure the capital required for the airline to recommence operations and therefore filed the papers in court on Thursday.
Shortly after the R500 million business rescue investment in 2020 by the Comair Rescue Consortium, the airline was faced with three covid-related lockdowns and was placed on the so-called "Red List" by certain European countries.
Needless to say, these factors along with rising fuel prices was the proverbial final nail in the coffin for the airline.
Ferguson said the company's employees and customers who held bookings or were owed refunds will now become creditors of the Company.
