Home Uncategorized South Africa’s Comair acquires Star Air

South Africa’s Comair acquires Star Air


South African carrier Comair has acquired South African leasing and cargo specialist Star Air, as part of its continuing strategy of diversification.

Comair—which is a British Airways franchisee and has its own LCC brand, Kulula—said in a stock market filing that it had “acquired the assets to extend its diversification strategy into the leasing of aircraft, while also providing Comair with the expertise and systems to establish a base for heavy maintenance checks on its fleet of [Boeing] 737-800 aircraft.”

Star Air SAC is a Part 121 carrier, focusing on the wet, dry or damp leasing on short- to medium-term leases to African airlines. The company also provides aircraft maintenance requirements for its own fleet as well as for third-party aircraft.

Comair said it is paying ZAR75 million ($5.1 million) for Star, plus profit share payments up to a maximum of ZAR250 million.

The deal is scheduled to be finalized July 1, unless Star Air’s board decides otherwise.

Comair has a fleet based on Boeing 737-400s and -800s. It has eight 737 MAX 8s on order, of which one had been delivered before the March worldwide grounding of the type. The MAX 8s are destined to replace the -400s. Star Air has a small fleet of 737-300s, in both passengers and freighter configurations.

Former Star Air CFO Glenn Orsmond was appointed co-CEO of Comair in May 2019, following the resignation of longtime CEO Erik Venter. Orsmond will become responsible for Comair’s non-airline business and financial services, while Wrenelle Stander will look after the airline side of the business. Stander is an executive director of Comair; Venter will stay on until the handover date of July 31.



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