Thursday, October 11, 2012

■ SOUTH AFRICA: 1Time to retire two aircraft and shed 15% of workforce as part of cost cutting measures.

1TimeAs part of its fight to remain afloat financially, troubled South African LCC, 1Time (T6), has announced that it is to cut its fleet down from 10 to 8 aircraft with plans to trim its workforce down by 15%.

With a fleet consisting of McDonnell Douglas MD-80/90s, some over 20 years old, and with global oil prices sitting above USD100/barrel, the carrier's CEO, Blackie Komani, has said that the carrier's future plans will necessarily include provision for new, more fuel efficient aircraft: 

1Time's aging Mad Dog fleet
1Time's aging Mad Dog fleet (1Time)
"There is about a 30% cut in our fleet. The fixed course that goes with that has to be proportional to the number of aircraft that we are operating. Part of that involves us exiting routes that are not profitable and maintaining routes that are profitable for the airline," Komani said.

More painfully though, the carrier is also to shed 15% of its workforce countrywide, though the exact number of staff to go has not yet been finalized.
"We’re working with the unions to see what we can do. No-one wants staff cuts but we’re working with 8 planes instead of 10." said Komani
Source [Fin24, South Africa]

Komani did add that, should the airline grow and return to profitability, it will re-employ "some" of the staff.

1Time's creditors, amongst whom the largest is the Airports Company of South Africa (ACSA), will vote on the airline's final business rescue plan, as overseen by Nominated Business Practitioner (NBP) Gerhard Holtzhauzen, CEO of Strategic Turnaround Solutions,  and will do so within the next 14 days.