In November 2007, it was announced that the Malawian government was in talks with Comair of South Africa over a partnership deal with Air Malawi. The deal would have seen Comair acquiring the air traffic rights of Air Malawi, some of the assets including a Boeing 737-300, and the launching of a new airline to be called "Comair Malawi". It was alleged that Comair was only interested in acquiring the 737-300 In the 2007 financial year, Air Malawi posted a profit of K135 million, an improvement on the K854 million loss it posted in 2006. In early 2008, negotiations with Comair broke down in dispute over the terms of the arranged deal; the Malawian government preferring a strategic partnership, whilst Comair wished to take an 80% stake in the airline.