HILKA BIRNS / CAPE TOWN
Comair has taken delivery of the first of five second-hand Boeing 737-400s, enabling it to expand into southern African markets.
The Johannesburg-based British Airways franchise has acquired two aircraft from the UK carrier. The 737-400s have been sold to Safair for 500 million rand ($44 million) and leased to Comair. Lease rentals are being paid in rand to limit the carrier's exposure to the crippling dollar exchange rate. Safair will also maintain the aircraft.
The first 737-400 made its inaugural flight from Johannesburg to Cape Town last week, while the second aircraft will be delivered in April. Three more are to be phased in later this year - some will be added to Comair's balance sheet.
The new 737s will replace six ageing Boeing 727-200s, including two which Comair owns and four which are leased from Safair. The more fuel-efficient 737-400s are expected to bring down fuel costs by 40%, reducing the company's exposure to oil-price and exchange- rate volatility.
"The phase-in pace depends on market response," says Comair managing director Piet van Hoven, who plans to use the new aircraft to expand the regional network to Nairobi (Kenya), Dar es Salaam (Tanzania) and Luanda (Angola).
Meanwhile, Kulula.com, the low-cost carrier launched by Comair last year and in which BA has no stake, is in profit after six months of operations.
Source: Flight International
