http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.34Change: 0.02
R/$ = 11.16Change: 0.01
Au 1223.37 $/ozChange: 1.94
Pt 1334.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 11, 2012

Comair posts small profit in ‘toughest’ financial year

Back
Aviation|Cape Town|Johannesburg|Maputo|Nelspruit|Africa|American Airlines|ATR Industries|Boeing|British Airways|Comair|Solenta Aviation|Africa|South Africa|Lanseria Airport|Airline|Airline Operator|Building|Boeing 737-200s|Boeing 737-800|Southern Africa|Information Technology
Aviation||Africa||Africa|||Building|||
aviation|cape-town|johannesburg|maputo|nelspruit|africa-company|american-airlines|atr-industries|boeing|british-airways|comair|solenta-aviation|africa|south-africa|lanseria-airport|airline|airline-operator|building|boeing-737200s|boeing-737800|southern-africa-region|information-technology
© Reuse this



JSE-listed domestic and regional airline operator Comair has retained its unbroken profit history for 67 years, with a small headline profit of R18-million, significantly lower than the R77-million from the prior year.

Revenue grew by 16% to R4.16-billion in the financial year ended June 30.

But Comair, which operates British Airways flights in Southern Africa and low-cost domestic airline kulula.com, said 2012 was the “toughest” financial period in the group’s history, with the average jet fuel price surging 29% to an all-time high.

“The sustained high fuel price and weak global economy created pressure from which few airlines could escape unharmed, as evidenced by the failure of such notable carriers as Malev, Spanair and Air Australia, and the filing for Chapter 11 protection by American Airlines,” the company stated.

In South Africa, new Velvet Sky closed down, while JSE-listed 1time filed for a business rescue application.

Comair said competitor response to the cost increase, and consumer acceptance of higher ticket prices, was slow in the first half, but improved.

Seat occupancy remained strong, supported by the exit of Velvet Sky and reduced competition on routes from Lanseria Airport, while costs were negatively impacted by the October increase in the Airports Company of South Africa (ACSA) tariffs of 70%, and by the effect on maintenance and lease costs of the 11% average weakening of the rand.

A number of individual cost-saving initiatives were launched during the year, the most significant being the opening of its in-house flight catering units in Johannesburg and Cape Town, and the opening of a new crew base in Cape Town.

Employment costs were kept stable by applying a salary and headcount freeze for the 2012 calendar year, thereby avoiding any retrenchments.

After suffering the impact of the rampant fuel price on the Nelspruit and Maputo routes, Comair and Solenta Aviation, by mutual agreement, terminated the turboprop operation joint venture launched in the previous year. Comair said that it had resulted in termination costs, but that the company would not have been able recover the higher fuel bill any time soon considering the relatively small number of seats on these aircraft.

Of the four Boeing 737-200s retired in December of the prior year, Comair sold three and impaired the fourth to nil value, resulting in a combined capital loss of R14.7-million. Comair's affiliated businesses in flight training, travel distribution and airport lounges continued to perform well, in line with the previous year, and made a meaningful contribution to profits.

During the year, a fourth flight simulator, for the training of ATR-turboprop pilots, was placed in a leased bay in the Comair flight training building by ATR Industries, thereby further broadening the offering of this facility.

Meanwhile, the company noted that by December the entire kulula.com fleet would have been upgraded to 737-800s, where the high seating capacity, lower operating cost and extended potential daily use would be most productive.

“During the year we made substantial investments towards the acquisition of a new fleet of Boeing 737-800 aircraft and a new information technology platform, totalling R216-million. The first new Boeing arrived just after year end, in July, and a further two will be delivered in October and November to join the five 737-800s currently on lease,” the company noted.

Four more were on order for delivery in 2015 and 2016. A programme was also under way to refurbish the interiors of the British Airways fleet.

The company added that it was still somewhat cautious as to the state of the global and South African economic circumstances, and expected consumers to remain under pressure for the foreseeable future. “While there is much talk about the growth of aviation in Africa, this is off a very small base, and we will, therefore, continue to take a pragmatic approach to our expansion on the continent,” it said.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Mozambican, Swazi, South African officials at inauguration
The Mozambican port and rail authorities plan to invest around $3-billion in the coming few years to raise yearly throughput at the Maputo port to between 40-million and 50-million tons by 2020 and to migrate additional cargo from road to rail. Speaking at the...
The Transnet National Ports Authority (TNPA) welcomed the Ports Regulator of South Africa’s decision to switch to a multiyear tariff methodology, TNPA CFO Mohammed Abdul said on Friday, stating that a lack of certainty in prior years had negatively affected TNPA’s...
The Coega FAW plant
FAW South Africa (FAW SA), a subsidiary of China’s FAW Group, has established a joint venture with the Pamodzi Group, focusing on truck sales in South Africa and other countries in sub-Equatorial Africa. The new company, Pamodzi-FAW, is 51% held by Pamodzi and 49%...
More
 
 
Latest News
The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks