Comair legal battle against Boeing edges forward

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Earlier this month Comair brought an application for discovery of certain information and documents.
Earlier this month Comair brought an application for discovery of certain information and documents.

Comair's legal battle in a US court to cancel a purchase agreement of eight 737 MAX planes from US manufacturer Boeing has taken one step forward.

The Boeing 737 MAX passenger airliner was grounded worldwide between about March 2019 and December 2020 after two fatal crashes - one by Lion Air and one by Ethiopian Airlines.

Comair, which owns kulula.com and operates British Airways domestically under a license agreement, went into business rescue in May 2020. It restarted flights in September after halting them for a few months when SA went into a harder lockdown in July.

Earlier this month, Comair brought an application for discovery of certain information and documents. A New York judge has now granted the application and ordered that the parties must meet to agree on the details of the discovery. 

The latest report by Comair's business rescue practitioners states that the company's funding requirements have stabilised and they believe it can be rescued.

The disposal of Comair's Slow Lounge business as part of a transaction with FirstRand Bank - already approved by creditors - remains subject to regulatory approvals by the relevant authorities. FirstRand has provided an interim loan of R250 million until the deal is finalised. 

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