Comair secures US Government-backed finance for new fleet

The credit guarantee, which will cover all eight aircraft, was secured via the Export-Import Bank of the United States (Ex-Im Bank).

Ex-Im Bank is the official export credit agency of the United States federal government.It provides credit guarantees for financing and insuring foreign purchases of United States goods, thereby supporting export companies in that country.

Erik Venter, Joint CEO of Comair, said "We are thrilled to have secured a preliminary commitment from Ex-Im bank to back the financing of our new fleet of Boeing 737-800 aircraft. This provides us with cost-effective financing and increases the attractiveness in the international financing market of funding our fleet acquisition. Ultimately this will ensure that South Africa maintains world class airline services."

Venter added that the company's ability to secure this financing was due mainly to its 65-year profit history.

"The new 737-800's will further enhance our high efficiency, low cost business model and will set the standard for the industry in Southern Africa, while maintaining Comair's leadership position. While the order will increase our gearing, together with our other efficiency initiatives it will position us for a much stronger profit performance in the future," added Venter.

Fred P. Hochberg, chairman and president of Ex-Im Bank said in Johannesburg this week that Comair is the third South African company this week that is expected to receive export financing to buy U.S. goods or services with support from Ex-Im Bank. "These transactions are great examples of Ex-Im Bank's firm commitment to help South Africa meet the country's infrastructure needs and to support purchases by both small and large companies."

Hochberg added,"These investments in infrastructure better position South Africa to continue to grow its economy and improve the lives of its citizens. We are excited to be part of these plans that move South Africa forward."