Top SA airline beyond rescue and poised for liquidation

Lawyers for South African airline, Comair, have requested for it to be liquidated after failing to get funding to keep the firm going.

When a company is liquidated it is no longer operational.

Comair operates low-budget airline Kulula as well as domestic and regional flights for British Airways airlines.

Company bosses said it had been affected by the coronavirus-related travel restrictions and the recent increase in fuel prices due to the Ukraine-Russian war.

"We did our utmost to secure the funding, but when we were unable to do so had no option [but] to lodge the application," said company lawyer Richard Ferguson.

"It is an extremely sad day for the company, its employees, its customers and South African aviation," he continued.

All employees, and customers who held bookings or were due a refund, would become creditors of the company, a statement on the airline's website quoted Mr Ferguson as saying.

At the end of May, the company grounded flights abruptly because of financial problems, leaving thousands of customers stranded at airports.

Comair was the operator for around 40% of flights within South Africa, according to business news site Bloomberg.

This article originally appeared on BBC News

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