Comair looking at launching its own UK-SA flights
#1
Original Poster
Join Date: Mar 2004
Location: London, UK
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Comair looking at launching its own UK-SA flights
An interesting development from BA's South African franchisee.
(Bloomberg) -- Comair Ltd., British Airways Plc's franchise operator in southern Africa, applied to the International Air Services Licensing Council to begin flying between South Africa and London.
Comair is ``investigating various options to acquire wide-body aircraft that would be required to operate the long-haul route,'' the Johannesburg-based carrier said in an e-mailed statement today.
(Bloomberg) -- Comair Ltd., British Airways Plc's franchise operator in southern Africa, applied to the International Air Services Licensing Council to begin flying between South Africa and London.
Comair is ``investigating various options to acquire wide-body aircraft that would be required to operate the long-haul route,'' the Johannesburg-based carrier said in an e-mailed statement today.
Last edited by aristoph; Aug 20, 2007 at 11:00 am
#2
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An interesting development from BA's South African franchisee.
(Bloomberg) -- Comair Ltd., British Airways Plc's franchise operator in southern Africa, applied to the International Air Services Licensing Council to begin flying between South Africa and London.
Comair is ``investigating various options to acquire wide-body aircraft that would be required to operate the long-haul route,'' the Johannesburg-based carrier said in an e-mailed statement today.
(Bloomberg) -- Comair Ltd., British Airways Plc's franchise operator in southern Africa, applied to the International Air Services Licensing Council to begin flying between South Africa and London.
Comair is ``investigating various options to acquire wide-body aircraft that would be required to operate the long-haul route,'' the Johannesburg-based carrier said in an e-mailed statement today.
#3
Join Date: Apr 2007
Location: Tallinn / Isle of Man
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That would be nice.
Another nice thing Comair does is upgrade the Golds from Y to J if there is availability. I probably run at a rate of 60% of upgrades when I go to SA and have to fly domestic. South African seat pitch would be also nice.
Another nice thing Comair does is upgrade the Golds from Y to J if there is availability. I probably run at a rate of 60% of upgrades when I go to SA and have to fly domestic. South African seat pitch would be also nice.
#4
#5
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IIRC BA regards its investment in Comair as non-strategic, unlike its lower (percentage) share of Iberia. Perhaps a sale of the Comair stake is on the cards, like its former share of Qantas?
#6
Join Date: Jun 2004
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If I were Comair, I would go for the Lagos route first. The passengers on the SA route apparently hemorhage money, and it is pure profit. It would probably be much easier to get rights than trying to pry slots away from someone else at LHR (unless BA cooperates with them of course).
Would BA end the franchise agreement if Comair goes after the lucratice SA routes?
#7
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Page 76 of the BA annual report:
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?
#8
Join Date: Jun 2004
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Page 76 of the BA annual report:
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?
The Group accounts for its investments in Iberia as an associate although the Group holds less than 20% of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the the Group's voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia.
and
On June 9, 2006, the Group's shareholding in Comair Ltd, was reduced from 18.3% to 12.9%. Due to the Group's ability to exercise significant influence
the investment in Comair Ltd was accounted for by the equity method. In September 2006, the Group's shareholding in Comair Ltd decreased to 10.92%
and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.
I for one was surprised to learn that SA loses money hand over fist on its European routes, especially in view of their prices virtually matching BA and VS ex LHR. It's because its planes sit on the tarmac for half a day at LHR, FRA, JNB, CPT etc and is the reason why 747s are out of the window.
I understood that JNB/CPT were the most profitable routes for BA and VS after Nigeria. Is this still the case?
The SA 747s are out of the picture also because their lease costs soared, making them unprofitable on the route because of the issue you mention: sitting around for so long in London. But BA flights also sit around all day in JNB...? (they arrive in the morning and depart in the evening) KLM apparently is among the most effective at exploiting the JNB route, as it has both daytime and night-time flights to minimise downtime.
Surprised to hear about Comair getting less important and possibly up for sale. It also seemed as though, from conversations with local BA staff, that BA was pretty much here to stay.
#9
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