Mar 24, 2017 Last Updated 10:30 AM, Mar 24, 2017

Comair challenges SAA government guarantee

ABN – Comair Limited is challenging the validity of the South African government’s guarantee for South African Airways (SAA).

Following the signoff by two cabinet ministers SAA received a R5 billion (US$417.8 million) government guarantee.

Media reports have shown that the airline has received more than R30 billion in government guarantees over the last 16 years.

Comair has challenged this guarantee saying it compromises a level playing field.

Comair CEO Eric Venter told CNBC: “We are looking for a level playing field.

“It’s not much about the raising of finance but more about what you can afford to do commercially as a competitor when you have this unlimited pot of money and other players are constrained by the risk of bankruptcy.

“Most countries have a legislative framework to govern the competitive effect of state funding unlike South Africa where we rely on parliament to look at the factors around funding.

“What we are challenging is that SAA is being funded by guarantees signed by simply two ministers and is not going through parliament.”

@ABNetworkOnline

Four star hotel opens in Bahir Dar

ABN – Bahir Dar in Ethiopia has gained a new four star hotel to help with the country’s growing tourism industry.

A total of US$3.5 million was invested in the new hotel, which has 48 rooms with steam baths, 2 conference halls and a syndicate room.

Bitaniya Hotel Trading PLC own and operate the new BenMas Hotel.

Hotel general manager Merkebu Limenih said: “The number of stat hotels we see opening every year shows the fact that the number of both local and international tourist flows to Bahir Dar is increasing.

“Conference and sport tourism is becoming common in the city thanks to the biggest conference centre in the country, which the city recently inaugurated and the new stadium.”

Hotel owner Mussie Wondim added: “I came to tourism sector because the city is growing fast and the tourist flow is increasing.

“I have been thinking for long what landmark I may leave in this fast growing city. Finally, I decided to build this hotel I have used a loan from Abay Bank Share Company.”

@ABNetworkOnline

Turkish Airlines introduces Maputo flights

ABN – Turkish Airlines has announced that it will introduce new flights between Maputo and Istanbul.

The new flights will be introduced at the end of October and will commence as a thrice weekly service.

Flights will leave Istanbul just after midnight on Thursdays, Fridays and Sundays and return in the evening of the same day.

An hour long stopover in Johannesburg will be included in the flight time.

@ABNetworkOnline

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