Comair SAA lawsuit hots up

Arguing in the Pretoria High Court, Comair has claims that auditors would not have signed off on South African Airways’ (SAA) financial statements without the R5bn guarantee from the government. Comair was responding to an argument presented last week by Citibank, Nedbank, Absa and Standard Bank that the R5bn guarantee does not in fact exist since the banks have all given loans to SAA. Comair, the JSE-listed British Airways franchisee that operates kulula.com, wants the R5.006bn guarantee that was granted to SAA — which is also its competitor — in 2013, set aside on the grounds that it is “unlawful”