Comair Ltd., the South African partner of British Airways and owner of low-cost carrier Kulula, is on the brink of collapse after administrators were unable to raise the funds needed to resume flying.

The operator of about 40% of domestic air trips in South Africa has been battling with high fuel prices, the aftermath of coronavirus travel bans and the fallout from a recent grounding by the industry regulator, business rescue specialist Richard Ferguson said in a statement Thursday. 

“We did our utmost to secure the funding, but when we were unable to do so we had no option but to lodge the application” for liquidation, he said. “It is an extremely sad day for the company, its employees, its customers and South African aviation.”

Ferguson said last week he was in talks with a financial backer about a rescue after grounding flights on June 1, though the negotiations fell through. Comair’s existing lenders and investors—a group of wealthy individuals who bailed out the airline in 2020—were not willing to put in more funds.

The imminent collapse is a blow to South Africa’s air-travel market, which was already reeling from the loss of state-owned low-cost carrier Mango during the Covid-19 pandemic. Comair’s grounding in March on safety concerns led to chaos at airports and soaring ticket prices as South Africans sought alternative plans for a long weekend.