Comair to overhaul fleet

Johannesburg - Buoyed by uninterrupted profits for 64 years, aviation group Comair Holdings has set its sights on a new fleet to replace its ageing Boeing 737-300s.

"We see up to a 40% seat capacity growth in the next five years," Comair joint chief executive Gidon Novick told Fin24.com on Wednesday. "We are negotiating a deal right now and we're close to concluding talks with the major aircraft manufacturers."

These include Boeing and Airbus - Comair said it was looking to acquire aircraft from both.

The fleet currently comprises 22 Boeing aircraft, five of which were bought in the last two financial years.

"The timing is right for us to be buying new aircraft right now," said Novick. "The rand is strong and there's lower demand for aircraft."

He said the company would also look at taking advantage of the cheaper leasing options available, since these have a shorter delivery timeline.

"For us, a fleet upgrade is a long-term issue and we are planning for the future," said Novick when asked if the upgrade was in preparation for next year's Fifa World Cup. "The World Cup is only a short-term thing and we cannot be buying aircraft for it."

He said Comair would take other measures to maximise its fleet during the World Cup. This included operating aircraft for longer periods and ensuring none were grounded for servicing.

In a statement accompanying its financial results for the year to end-June, Comair said in addition to investing in new aircraft, it would continue to invest in business opportunities similar to its financial services and cellphone operations.

Non-aviation businesses contribute 20% to profits, and Novick said this percentage would increase steadily over the next few years.

- Fin24.com