South African domestic carrier Sun Air has become a casualty of the country's air fares price war and weak currency (Flight International, 11-17 August). The top-end carrier ceased operations on 13 August and is to be put into liquidation by shareholders Comair and South African Airways.
SAA agreed to buy a 75% stake in Sun immediately before its closure, and will assume the bulk of its debts. In return, it hopes to capture most of Sun's market share - about 10% of domestic traffic. The flag carrier had discussed possible co-operation with Sun for weeks, but decided it was not viable.
SAA bought its stake from black empowerment groups (70%) and airline staff (5%). The remaining 25% is held by Comair, a British Airways franchisee and competitor carrier which controversially acquired the stake after Sun's privatisation last year.
Source: Flight International
