Nedbank will provide Comair with $17.6 million in finance for the purchase of four new Boeing 737-800 aircraft to upgrade the airline’s fleet. Two of the aircraft will be going to its low-cost kulula brand, and two to its premium British Airways operation.
Comair operates British Airways in southern Africa.
The aircraft will be delivered between October and November this year.
“A brand new aircraft has the potential to unlock significant operator savings in terms of fuel and maintenance costs, provided there aren’t too many empty seats on most flights,” said Erik Venter, Chief Executive Officer of Comair. “Comair has consistently been filling the majority of its aircraft on all routes across southern Africa, and our purchase of these new 737-800s exemplifies our confidence that this trend is set to continue.”
The deal will take the form of a full installment sale transaction, and will be wholly funded by Nedbank.