Comair gets a lift from SAAÆs misfortune
Carli Lourens
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Trade and Industry Editor
LISTED aviation group Comair has added more than 53 flights since Friday to come to the aid of more than 4000 South African Airways (SAA) passengers.
The roaring trade at Comair ù which operates British Airways (BA) in SA and owns budget flier kulula.com ù comes courtesy of the biggest strike in state-owned rival SAAÆs history.
The unexpected windfall provided a further boost to ComairÆs revenue, which has been increasing for some time amid buoyant consumer spending.
The groupÆs share price has risen steeply since Friday, and it closed almost 9% higher yesterday at 165c.
BA and kulula.com were using their existing fleet of aircraft, but increased the frequency of flights to take on SAA customers, Stuart Cochrane, ComairÆs executive manager for sales and marketing, said yesterday.
Still, the two airlines could not keep up with the demand triggered by the SAA strike, he said.
SAA would refund Comair at a later stage, under a standard inter-airlines agreement that provides for some measure of contingency where operations are disrupted.
Comair would feel the benefit of the SAA strike for some time after the event, because the uncertainty caused by the strike has seen future travellers opting for other airlines.
ôOur forward book is looking very good,ö said Cochrane.
Comair, which reports its financial results for the year to June in September, expects to record earnings a share of between 16c and 17c, compared with a loss of 24,2c in the previous corresponding period.
Comair already reported a solid turnaround in its first half to December, posting headline earnings of 5,4c, compared with a headline loss of 1,4c in the corresponding period in 2003.
The group attributed the improvement to increased passenger numbers, improved fleet operating efficiencies and effective cost control at both airlines due to the favourable exchange rate, among other things.
Comair said there was a 15% increase in passenger numbers on the back of an 11% increase in available seats in the half year to December
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