Comair takes advantage of strong rand to buy craft
Comair takes advantage of strong rand to buy craft
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LISTED aviation group Comair`s acquisition of four Boeing aircraft for R220m is unlikely to put strain on the group.
Comair`s previous purchase of three Boeing aircraft last year was largely to blame for the R2,8m operating loss the group reported in the six months to December. Global aircraft depreciation accelerated after the September 11 2001 terrorist attacks on the US. The depreciation of Comair`s aircraft was made worse by the rand`s gains, and a revaluation of the group`s fleet led to an impairment charge of R115m this year.
The strong rand and the recovery of aircraft prices created a favourable environment for the purchases.
Comair MD Piet van Hoven said last week that international aircraft prices rose about 5% this year over last year.
He said financing the latest acquisition would not be onerous for the group, whose brands are British Airways (BA) and kulula.com.
Van Hoven said the group had yet to decide how it would fund the deal. Comair`s cash resources at the end of its financial year in June exceeded the purchase amount, however.
Comair said it had taken advantage of the strong rand to upgrade its fleet. The deal was signed at a level of less than R6 to the dollar.
The aircraft will be used to serve BA`s domestic and regional routes.
Comair expected to take delivery of the first aircraft in May next year, with the remaining three being brought into service during the course of next year.
The latest acquisition takes Comair`s fleet to 23 aircraft. The Boeing 737-300s will provide operational savings including better fuel economy and maintenance costs .
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