The former CEO of Comair, Wrenelle Stander, knew she would have to step aside once the business rescue process was concluded and new investors stepped in.
Comair, which operates British Airways domestically and low-cost carrier Kulula.com, went into voluntary business rescue in May after being hit by the global grounding of the Boeing 787 MAX aircraft and the lockdown.
It was announced this week that Stander, who oversaw the business rescue process, would step down and be replaced by Glenn Orsmond, who is part of the consortium that won the bid to buy Comair.
In an interview with Business Times, Stander said she had been made aware that she would have to vacate the CEO position once the business rescue process was concluded because the incoming investors would want their own people.
"The new investors wanted to appoint their own team. It's their money, they get to choose their CEO. These were the terms of their investment from the beginning."
Comair's new investors pumped in R500m for a 99% share in the business while lenders injected R600m in new debt.
Stander said her main concern had been about saving as many jobs as possible.
"Both the decisions to place the company into voluntary business rescue and to step aside for the investor team were about saving as many jobs as possible. On the one hand I am pleased that the airline is flying again and on the other, I am sad I'm no longer leading it," she said.
Comair resumed Kulula flights on December 1 on all domestic routes except the Durban-Cape Town and Lanseria routes. The company said these would be added when more aircraft became available. Its domestic British Airways operation would resume later this month.
Stander described her time at the helm as the "toughest assignment ever", starting with the grounding of the MAX 8 after the crash of an Ethiopian Airlines flight in March 2019 that killed all 149 passengers on board and eight crew members.
Comair had ordered eight MAX 8 aircraft for R9bn as part of its fleet renewal and expansion strategy. Unable to operate them after the crash, the cost of leasing substitute aircraft became exorbitant. It has since demanded compensation from plane-maker Boeing or cancellation of the contract.
The collapse of SAA also meant the national carrier would be unable to pay Comair R790m owed to it as part of a settlement reached over SAA's alleged anti-competitive conduct. Compounded with the Covid-19 lockdown, Stander said this left her with no option but to recommend to the board that the company be placed in business rescue.
The former CEO and her team had to work on attracting potential investors while keeping staff - frustrated at not being paid their salaries - updated on the process and motivated to keep working.
Non-core businesses were closed and excess staff retrenched but the team preserved the core elements of the business, such as the fleet and IT systems.
"From day one to the next the outlook on whether we would fly again changed; one day the outlook was optimistic and the next completely gloomy," said Stander. "A roller-coaster ride for staff and management. Business rescue is a tough process."
Despite the difficulties, she said, "I believe I did my best under these difficult circumstances. There was so much to achieve with so little cash flow. So many stakeholders to engage with and convince that the airline could one day fly again. It was an emotional roller-coaster for staff and management. So many hurdles we needed to cross to get to the first day of flight."
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