Delisting from the JSE, retrenching 400 employees, and new debt. That's just part of Comair's business rescue plan proposals, with the hopes of flying again in December.
Comair operates British Airways in South Africa and low-cost airline Kulula.
The company, that went into business rescue due to the flight restrictions imposed by government as part of the national lockdown to curb the spread of the COVID-19 pandemic, published its proposed business rescue plan on its website on Wednesday.
Creditors and shareholders were given until the 18th of September to consider and approve the plan.
"The publication of the plan follows negotiations with a preferred investor, which will see a fresh equity injection of R500 million in return for a 99% shareholding."
The plan suggested that up to 15% of this shareholding will be allocated to a suitable BBBEE partner within a year.
To cut operating costs, the existing workforce will be reduced by approximately 400 employees. Voluntary retrenchment and early retirement programmes will be offered.
The plan also revealed Comair's plan to include maintaining its existing relationships with Boeing, British Airways and Discovery.
Discovery Vitality members are able to use their Vitality points to book flights on either Kulula or British Airways.
The company added that, if the plan is approved, it could be finalised by the end of May 2021 – an effort by the company to save jobs and contribute to the country's economy.
"Comair is a national asset. Getting it back in the air will save 1,800 jobs, provide the flying public with more choice and competitive fares, strengthen the aviation sector and contribute to the broader South African economy."
Watch the Newzroom Afrika video below for more info on the Comair proposed business rescue plan.
Image credits: The Flying Sri Lankan and Flying Magazine