Comair drops Star Air acquisition as challenges deepen

South African carrier Comair has agreed to call off its planned acquisition of aircraft leasing specialist Star Air Cargo and Star Air Maintenance as it battles mounting challenges. Comair agreed a deal with sellers Sundrops Investments, Smashing Star Investments and Marcel Liebenberg last summer for the acquisition. Comair was to pay US$5.1m plus a profit-share payment for the acquisition. But in a brief stock market statement today, Comair says: ”Shareholders are now advised that with effect from 31 March 2020, the parties by mutual consent, agreed to terminate the agreement, such that the agreement shall cease to have any further force or effect.” While no reason has been specified for the deal being abandoned, the airline has been dealing with the impact of the coronavirus crisis on top of a series of existing challenges.<br/>