Comair to challenge SAA bailouts

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17 October 2014 - The Department of Public Enterprises, which controls SAA is adamant the latest round of board resignations will not affect the carrier's operations or its turnaround strategy.

JOHANNESBURG - Comair has launched a court application against SAA&39;s state bailouts.

Comair, which manages British Airways local flights and low cost airline Kulula, said the funding is not in line with Domestic Aviation Transport Policy or the law.

The policy stipulates that SAA must operate on a commercial basis largely because its losses affect the entire industry.

Earlier this year Finance Minister Nhlanhla Nene, granted the cash-strapped national carrier another R6.4 billion guarantee.

In a statement Comair said the bailouts SAA has received since 1999 amount to about R30 billion.

The case will be heard in the North Gauteng High Court on Tuesday.