Comair vs State over SAA funding

2013-02-27 12:17

Comair, a franchise partner for British Airways, plans to take government to court over its continued funding of state carrier South African Airways (SAA).

Government last year agreed to guarantee R5 billion in loans for the troubled national airline over the next two years, according to Business Report.

Comair’s chief executive Erik Venter said the latest bailout and previous payments did not comply with either the domestic aviation transport policy nor the law, according to the paper.

Venter said: “Comair’s sole objective is to attain a level playing field in the domestic aviation market to ensure that all airlines face the same risks and the same requirements to operate on sound commercial principles.”

According to him, Comair was not seeking to stop all financial support for SAA or to shut down or privatise the airline, but asking that any assistance be in line with domestic transport policy to minimise impact on other operators.

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