Comair raised ZAR124.5 million (USD15.8 million) through a fully underwritten renounceable rights offer of 69.2 million new Comair ordinary shares of ZAR1 cent each. Rights offer shares were issued at a ratio of 14 for every 100 Comair ordinary shares at a subscription price of ZAR180 cents (USD22.8 cents) per rights offer share. 64.4 million rights offer shares were subscribed for, with 4.5 million shares allocated to BB Investment Company, the offer underwriter. [more]
Comair announces results of rights offer
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Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.