Comair (South Africa) (CAW, Johannesburg O.R. Tambo) voluntarily suspended all British Airways franchise and Kulula Air flights late on May 31, 2022, after running out of funding.

"The company's business rescue practitioners (BRPs) have advised that the process to raise the necessary capital is in progress and that there is reason to believe such funding may be secured. Once received, the airline will be able to recommence operations, but regrettably, under these circumstances, the practitioners have no choice but to voluntarily suspend all scheduled flights until the funding is confirmed," the airline said in a statement issued late at night.

Ticket sales for both brands have also been suspended with immediate effect.

"Comair, the BRPs and the lenders are working all out to get the funding in place so that we can resume our normal flight schedule as soon as possible," said Chief Executive Officer Glenn Orsmond. "We deeply regret the inconvenience this suspension will cause our customers. We did everything we could to avoid it."

"Comair is inherently a viable business. We have two of the best airline brands in the country. We are on track to carry over four million passengers this year and generate ZAR5.3 billion rands (USD315.8 million) in revenue. We have excellent staff, a modern fleet, good sales and distribution channel, and low operating costs, which is why we believe the funding will be secured," he added.

British Airways customers will be assisted in terms of the airline's flexible booking rules, while Kulula customers on suspended flights can choose a travel credit or request a full refund, Comair said.

Comair has been in voluntary business rescue since May 5, 2020. It restarted operations in December 2020 following a ZAR1.4 billion rand (USD92 million) rescue bid launched by the Comair Rescue Consortium (CRC) consisting of former directors and executives.

Despite setbacks due to four consecutive waves of COVID-19 in South Africa, Orsmond in February said the airline had clawed back 40% domestic market share, resumed most routes, and streamlined its business. About ten unprofitable subsidiaries were closed, and five profitable companies were sold, raising about ZAR270 million (USD17.9 million). Another ZAR20 million (USD1.3 million) was received from South African Airways as part of a historical ZAR1.1 billion (USD72.5 million) anti-trust settlement.

However, in March, the South African Civil Aviation Authority (SACAA) temporarily grounded, the airline and suspended its Air Operator's Certificate (AOC) on procedural grounds. This was followed by a similar temporary suspension of its maintenance provider Lufthansa Technik Maintenance International (LTMI), a subsidiary of Lufthansa Technik.

The airline has also been plagued with labour issues. In May, it was forced to withdraw employee dismissal notices under pressure from labour unions but warned it would need to seek other ways of cost-cutting for the company to remain sustainable.