Provisional liquidator Cloete Murray said: ‘The two councils have unlawfully suspended licences for Comair and we are going through the court process to have the suspensions lifted.’ Photo Supplied
The battle for Comair’s survival is on as the National Union of Metalworkers of SA (Numsa) and liquidators of the operationally defunct airline oppose the withdrawal of air licences and frequencies by both the International Air Services Licensing Council (IASLC) and its domestic subsidiary, the Air Services Licensing Council of SA.
The parties argue that the decision devalues the company as a going concern and risks the jobs of 1 500 employees.
Provisional liquidator Cloete Murray said: "The two councils have unlawfully suspended licences for Comair and we are going through the court process to have the suspensions lifted. There is the Kulula Brand and then there is the corporate identity of Comair, which a whole range of people we are talking to are interested in. But if there are no licences then there is nothing on the table. "The council is making it difficult if not impossible for us to recover value from the airline."
Murray confirmed yesterday that the decision by the regulatory bodies constricted talks with interested buyers, who were looking to buy the business in portions if need be.
Numsa's spokesperson Phakamile Hlubi-Majola said the IASLC’s decision to withdraw the licences should be reconsidered, as it placed Comair’s future at great risk because it was unlikely a buyer would want the airline if it did not have this licence.
"We are calling on the IASLC to recognise that this issue will have a direct impact on the 1 500 workers at Comair and their families, who will suddenly find themselves drowning in a sea of unemployment because the airline was liquidated as a result of its failure to secure a buyer in time. Should these jobs be lost as a result of this decision, it will partly be because of this decision," Hlubi-Majola said.
Numsa noted that the cost of flying domestically has shot up because of the collapse of SA Express; the radical restructuring of SAA, which had weakened the airline; the suspension of Mango’s services; and doubt over Comair’s future.
There were very few airlines and this was creating a situation of high demand and unjustifiably high prices because there was no competition, the union said, calling for the decision to be reversed.
The IASIC has, meanwhile, summoned Comair and liquidators to a long-delayed meeting on November 1 to get an extensive briefing on its corporate status, the non-activity and or non-usage, failures to report on corporate status, and changes of route rights allocated to it.
In a letter to liquidators, the IASIC secretariat said that from the non full disclosure by Comair of all relevant information, it was satisfied the airline was not in compliance with various provisions of the International Air Services Act.
"This situation is further exacerbated by the state of not having regulated post holders, by virtue of automatic suspension, as informed by Comair. In the result, the council, by virtue of powers vested by the Act, resolved to fully effect provisions of Section 21 of the act. You are hereby invited to appear before council on the meeting details mentioned below so as to present your arguments on all the above and related aspects,“ the council said.
The secretariat said the council had been concerned it was never apprised of these developments to the extent of their affecting the regulated business operations of Comair.
"Regarding compliance concerns raised by Council during the meeting, Comair insisted that they are fully compliant with provisions of the act. Also, as option available to them for the winding–up process of Comair, liquidators informed council that they intend selling the business entity as a going concern, regardless of the liquidation state of the business, and/or through a tender of lots process that they are currently engaged in," it said.
BUSINESS REPORT