British Airways (BA) has cancelled its franchise agreement with Comair after the South African airline operator halted its flights and filed for liquidation.
Comair’s provisional liquidator Cloete Murray verified that the cancellation of the agreement was activated by Comair’s entry into liquidation proceedings, according to a report by Fin24.
Murray added that British Airways is now seeking to partner with a new South African operator.
BA’s franchise agreement with Comair did not form part of the assets of Comair., Fin24 stated in its report. Comair used its own planes to operate its BA flights, meaning that the aircraft would need to be repainted if they are used for another purpose, the report continued.
Comair, which was established in 1946 as a South African aviation and travel group, entered into a franchisee agreement with British Airways in 1996. The agreement entailed Comair servicing local and regional routes under the British Airways livery.
Comair also launched and operated South Africa’s first low-cost airline, kulula.com in 2001.
On May 31, 2022, Comair halted flight operations due to a lack of funding and entered business rescue proceedings. On June 9, 2022, Comair announced that it had applied to convert its business rescue proceedings into liquidation proceedings. However, according to local media reports, 21 parties have recently expressed an interest in either acquiring the airline or its assets.