More managers have left Comair as it completes the streamlining of its executive team, a move that will save R23m annually and allow the airline to make quick decisions and changes to its business strategy, improve organisational focus and allow the leadership to gain more control over operations, says ceo, Wrenelle Stander.
This comes as Comair’s share price fell by 21% on Thursday after a cautionary announcement to shareholders of its rapidly deteriorating financial position due to the five-week lockdown, leaving it “in a very difficult financial position”. The company already posted a half-year operating loss of R562m ending December. It does not anticipate operating again before October/November because of Government’s COVID-19 risk-mitigating requirements.
The latest departures are Iain Meaker, executive manager commercial distribution; and Brian Kitchin, executive manager sales, marketing and distribution. Earlier departures included airline division chief and former joint-ceo, Glenn Orsmond, and flight operations director, Capt. Martin Louw. The R75m acquisition of Glenn’s company, STAR Air Cargo, has been terminated.
Wrenelle says the restructuring of the executive team concludes the first phase of a Section 189 Labour Relations Act process initiated on March 23. The next phase involves staff retrenchments, facilitated by the CCMA, involving trade unions and employee representatives. The CCMA will determine the timelines.
Comair Travel continues to operate following Iain’s departure, albeit at a scaled-down capacity because of the travel ban. “The Comair travel business is in safe hands,” says Iain. “A strong management team is running the various travel divisions, so I have faith it will grow from strength to strength.” His reasons for leaving are personal, says Iain, and his future plans have not been finalised.
Comair, meanwhile, informed shareholders it was focusing on cash preservation, cost-cutting, disposing of non-performing assets and strengthening its balance sheet. It has closed its SLOW in the City business lounge in Sandton and disposed of Course Restaurant. It is negotiating with banks to secure bridging finance; and supports industry initiatives lobbying for Government aid. It is also negotiating with Boeing to cancel its B737 MAX 8 orders and for compensation for the B737 Max 8 grounding.
