Category Archives: Comair (South Africa)

Comair to retire its last Boeing 737-300 by December

Comair Limited (British Airways franchise) (Johannesburg) has issued this update on its financial situation and fleet plans. The company has added additional Boeing 737-400s and last month it added the first first of four new Boeing 737-800s. This will allow Comair to phase out the last Boeing 737-300 by December 2015.

Read the full report:

Comair Limited logo

In the absence of revenue growth in the domestic passenger market and despite a challenging financial year, JSE-listed Comair Limited has announced continued profitability for the 12-month period ending June 30, 2015. Revenue remained consistent at R5.89 billion (2014: R5.90 billion), with a 1% saving in operating costs. Profit for the year amounted to R219 million (a net reduction of 17%, mainly as a result of two non-cash flow items). Cash from operations remained healthy at R646 million.

Comair reported a very strong profit in the first half of the financial year, supported by an unprecedented collapse in the oil price. The second half saw two new competitors enter the market with very aggressive, but more than likely unsustainable pricing. As a result, any savings achieved on the price of fuel were returned to customers by way of significantly reduced ticket prices, which led to a reversal of the revenue growth experienced in the first six months.

Comair CEO Erik Venter said despite the new capacity in the market, Comair maintained its passenger volumes, largely due to the strength of the kulula and British Airways brands and the company’s ongoing attention to service. “We continued to focus on our customers through the application of service metrics, feedback surveys, customer journey mapping, and extensive investment in training programmes for front-line staff. Operating performance therefore remained good, with on-time performance exceeding our threshold target of 85% across both the British Airways and kulula.com brands.”

The two non-cash flow items which resulted in decreased profits were the additional depreciation of R79 million provided on the retiring Boeing 737-300 fleet, and the year-end revaluation of R51 million to the dollar-based funding applicable to one Boeing 737-800.

Cash of R147 million was invested in three previously leased Boeing 737-400 aircraft and two pre-owned Boeing 737-400s, all for operation in the British Airways fleet. These aircraft have replaced the 737-300 fleet which will be fully retired by December. The newer aircraft afford improved fuel efficiency and reduced maintenance demands, while at the same time improving passenger comfort. Cash on hand at year-end was R849 million, much in line with the prior year balance of R868 million.

Venter said the black economic empowerment transaction concluded by Comair and the Thelo Consortium in 2007 matured in September 2014, and created realised value of R152 million for the participants. The “A” shares arising from the transaction were converted to ordinary shares, and the weighted effect of the additional shares amounted to a reduction in the 2015 earnings per share of 3 cents. Comair continued to invest in transformation initiatives, and thereby maintained its level 4 B-BBEE score.

Commenting on the year ahead, Venter said Comair remained concerned about weak economic growth and the consequent impact of overcapacity in the domestic aviation market. “Fundamentals dictate that a correction in market capacity is very likely. The new visa regulations applicable to South Africans traveling with children, as well as to foreign tourists, have impacted negatively on our cross-border tourist destinations, and we are actively participating in achieving a more favourable dispensation in this regard.”

“We are nevertheless confident that there is scope for further growth in our profits. Comair is focused on implementing technology solutions to enhance customer satisfaction, operating performance and drive revenue generating opportunities. We are also developing new applications to enhance both the ground and air experience that will facilitate more efficient operating procedures. Furthermore, the ongoing upgrades to the fleet will continue to improve efficiency while at the same time-enhancing the revenue potential per flight.”

In August 2015 we took delivery of the first of the next four new 737-800’s from Boeing, the remaining three of which will be delivered in late 2015 and 2016. The delivery of the eight Boeing 737-8 Max aircraft remains scheduled for 2019 to 2021.

Top Copyright Photo: Felix Gottwald/AirlinersGallery.com. Boeing 737-33A ZS-OAI (msn 24030) departs from the Johannesburg hub.

British Airways-Comair aircraft slide show: AG Airline Slide Show

Airline Aircraft Type “Endangered Species List” (airline aircraft types to be retired in the near future)

Click on the mosaic photo below for the full list, individual photos and the expected retirement target dates – the list will be constantly updated. All additional information or corrections are always welcome.

Endangered Species List Mosaic 9.22.15

 

 

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Comair of South Africa orders eight Boeing 737 MAX aircraft

Comair Limited (British Airways) (Johannesburg) and Boeing (Chicago and Seattle) today announced an order for eight 737 MAX 8s, valued at $830 million at list prices. It is the first 737 MAX order announcement for an African operator. The order was booked in December 2013 and was previously unidentified on the Boeing Orders & Deliveries website.

Johannesburg-based Comair operates Africa’s first low cost carrier, kulula.com (Johannesburg), offering flights to South Africa’smajor cities. Comair is also the franchise partner of British Airways, operating its local and regional Southern African routes. The company currently flies an all-Boeing fleet of 25 Classic and Next-Generation 737s on its kulula.com and British Airways (operated by Comair) brands. The order for eight 737 MAX 8s will support future fleet renewal and expansion.

With today’s announcement Comair will have a total of 12 airplanes on order from Boeing, including the eight 737 MAX 8s and four Next-Generation 737-800s for delivery in 2015 and 2016. Since its announcement in 2011, the 737 MAX has amassed more than 1,800 orders worldwide.

Top Copyright Photo: Paul Denton/AirlinersGallery.com. Operating under the British Airways franchise agreement, Boeing 737-85R ZS-ZWI (msn 30403) arrives back at Comair’s Johannesburg base.

Comair (South Africa): AG Slide Show

Kulula: AG Slide Show

Bottom Copyright Photo: Rainer Bexten/AirlinersGallery.com. Boeing 737-86N ZS-ZWP (msn 28612) in the humorous “flying 101” special livery approaches the runway at Johannesburg.

Comair slips into the red in the last half of 2011

Comair (Johannesburg) which operates under the British Airways and Kulula brands, slipped into the red for the last six months of 2011.

Read the full report from Business Day: CLICK HERE

Copyright Photo: Sean Mowatt. Please click on the photo for additional information.

Kulula Photo Gallery: CLICK HERE

Kulula Route Map:

Please click on the map to expand.

Comair orders eight new Boeing 737-800s for Kulula

Comair (Johannesburg) has ordered eight new Boeing 737-800 for its Kulula (kulula.com) low-fare subsidiary.

Copyright Photo: Ton Jochems. Please click on the photo for additional details.

Kulula TV commercial:

Kulula Route Map:

Comair is likely to place Boeing 737-800 order

Comair (South Africa) (British Airways) (Johannesburg) is likely to order up to six Boeing 737-800s according to media reports. If ordered, the new Boeing jets would likely to be also operated by the Kulula (Kulula.com) low-cost subsidiary.

News link:

www.thisdayonline.com/nview.php?id=150523