Comair celebrating an uninterrupted 70 years of profitable operation

Erik Venter

With its roots in a conversation among three South African Air Force pilots in the Egyptian desert after World War Two, Comair has evolved into a JSE-listed regional airline and travel business serving over 5.5 million customers a year. It’s South Africa’s longest-operating airline after the national carrier. It’s also believed to be the only airline in the world to have recorded a profit in every year of its operation.

Recipe for success

Comair CEO Erik Venter says: “Airlines aren’t an easy business and the recipe for long-term success demands innovation, leadership and a commitment to service.”

“An essential ingredient has been on building strong, lasting partnerships, such as our franchise agreement with British Airways Plc., established 20 years ago. It also requires innovation, for example, that of southern Africa’s first low-fares airline and one of South Africa’s biggest online retailers, kulula.com, launched by Comair in 2001. kulula.com has made air travel accessible to many who couldn’t otherwise afford it.”

“Success also requires that you’re willing to grasp opportunities and invest in achieving them. Doing so has led Comair to establish its SLOW Lounge network, the Food Directions catering service, and Comair Travel.”

Image Source: SLOW Lounge

Image Source: SLOW Lounge

Fleet upgrade

Comair is investing R10 billion to replace its current fleet of 737-300 and 737-400 aircraft and recently took delivery of its seventh new Boeing 737-800 Next Generation aircraft, as part of the airline’s ongoing fleet upgrade. The arrival of the eighth and final aircraft of this particular order is scheduled for delivery in November 2016.

In 2014, Comair announced an order for eight Boeing 737 MAX aircraft. The aircraft are scheduled for delivery from 2019 through 2021 and will result in Comair operating South Africa’s newest and most modern and efficient fleet. The new aircraft are fitted with Sabre Airline Solutions technology, which significantly reduce fuel consumption.

Venter adds: “The acquisition of these new aircraft is a strong indicator of our confidence in the region’s leisure and business travel and underpins the customer-centric nature of all aspects of our business, such as the lounges, catering and travel. It’s an approach that’s worked for seven decades and on which we’ll remain focused.

Paul Tyson via Wikimedia Commons - First Comair Boeing 737-800 flight to Saint Helena Airport

A challenging industry

Venter adds that the aviation industry worldwide is recognised for its operating challenges: “It’s an industry that’s capital intensive, has small profit margins and, out of necessity, is highly regulated.

“Poor return on investments, protected competition, low barriers to entry and status associated with owning an airline are a few of the common denominators for airlines internationally. It’s an industry that’s a soft target for taxes, with volatile costs, and labour issues as well as increased regulation.”

“In South Africa, volatile exchange rates and rising fuel prices require airlines to constantly innovate and improve on operating efficiency”, says Venter. He concludes that Comair’s priorities for achieving those objectives include a constant focus on customer service, controlling costs and increasing business efficiencies. “We’ve adopted a similar approach taken by successful airlines worldwide, of acquiring and operating larger but more fuel efficient aircraft as well as implementing new generation Information Technology platforms delivering efficiency and commercial opportunities.”