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Showing posts with label 1Time. Show all posts
Showing posts with label 1Time. Show all posts

Friday, November 2, 2012

■ SOUTH AFRICA: Knives out for SAA as 1Time goes under.

Embattled South African LCC, 1Time (T6), has filed for liquidation and has subsequently ceased operations as of 3pm this afternoon, 2 November 2012.

Monday, October 29, 2012

■ SOUTH AFRICA: 1Time Holdings announces $5million loss for interim period ended 30 June; plans rights issue.

South Africa's 1time Holdings Ltd, the parent company of LCC 1Time (T6) and its sister company, Jetworx, has posted a USD5.02million loss according to its unaudited results for the interim period ended 30 June 2012, with "higher fuel costs, airport taxes and an excess of capacity in the market" continuing to take their toll.

Wednesday, October 17, 2012

► ZIMBABWE: FreshAir to start Vic Falls - Joburg in November, just as 1Time pulls out of Livingstone.

FreshAir logoZimbabwean LCC startup, FreshAir, the 51/49 joint venture between Nu.Com (Pvt) Ltd of Zimbabwe and 1Time Holdings Ltd of South Africa, are set to launch operations on 2 November 2012 with Victoria Falls - Johannesburg (ORTIA), South Africa as their initial route.
 

Thursday, October 11, 2012

Sunday, October 7, 2012

■ SOUTH AFRICA: 1Time wants reductions in fuel levy, taxes as private airlines react angrily to SAA bailout.

1Time
1Time (T6), the South African LCC, has clarified the air over reports in the press that it had written to the South African government seeking a bail out (akin to what national carrier South African Airways (SA) secured last week), stating that their proposal centred around the South African government subsidising the airline industry as a whole with selected levies and taxes, and not to only offer unfair bail outs to South African Airways and its affiliate SAExpress (XZ).

Sunday, September 9, 2012

► ZIMBABWE: FreshAir unveils logo, begins offering flights from USD$50 up.

FreshAir logoZimbabwean aviation blog, Harare Airport Blogger, reports that private Zimbabwean start-up LCC, FreshAir, a 51/49 joint venture between Nu.Com (Pvt) Ltd of Zimbabwe and 1Time Holdings Ltd of South Africa, has unveiled its logo and has begun to advertise for routes between Harare, Bulawayo, Johannesburg and Victoria Falls with flights costing from USD50. Its website however - http://www.fly-fresh.com - is still under construction.

Wednesday, August 29, 2012

►► SOUTH AFRICA: "Business Rescue Specialist" appointed to 1Time earning workforce a reprieve but some routes to face the axe.

1TimeFollowing on from our report last week that South African firm 1Time Holdings had declared its two subsidiaries, LCC 1Time (T6) and maintenance arm JetWorx, to be in financial distress, the South African Companies Intellectual Properties Commission (CIPC), has approved a Nominated Business Practitioner (NBP) to oversee 1Time's business plan reform process over the coming next three months - Gerhard Holtzhauzen, CEO of Strategic Turnaround Solutions, has been appointed.
Holtzhauzen was positive about the company's potential: "We have a head-start because a turnaround strategy for 1time has been contemplated by a proactive management team."

During "Business Rescue", a distressed company is given a 3 month long protection period from creditors while the business is (hopefully) turned around - more or less equivalent to filing Chapter 11 in the US. The company will continue to operate normally though there will obviously be a review of the airline's operations and current routes in order to cut away the deadwood and retain the most profitable ones.

Meanwhile, the news given some breathing room to both companies, in particular to Jetworx whose trade union Solidarity, was last week warned the division faced job cuts of up to 25%. The appointment of NBP Gerhard Holtzhauzen has meant the job cuts will be deferred, though not necessarily abandoned.
"During yesterday’s consultation, we were informed that the process had been put off for the time being owing to the appointment of a business rescue specialist. The specialist must draw up a refinancing and restructuring plan for the company. The company will also be given the opportunity to develop and to implement a business rescue plan and to carry on its operations at the same time. 1time Holdings, Jetworx and the business rescue specialist will be requested in a letter to involve Solidarity in the process.” Solidarity spokesperson Marius Croucamp said.
  
Blacky Komani - 1Time CEO
Blacky Komani - 1Time CEO (CP)
In addition, unprofitable routes may also go, with the first rumoured to be 1Time's service to Mombasa, Kenya, though the reason for dropping the route may have more to do with soaring costs and charges in Kenya, than 1Times own internal woes.
"If this is true [1Time's withdrawal from Mombasa], other airlines might follow if charges keep going up. Authorities at times in the past just raised fees with little notice and until fares are adjusted the carriers have to absorb that added cost. Proposals in the new VAT bill spell doom for aviation in Kenya, like moving from an exempt status to a double digit tax figure. Those who drafted the bill are either totally uninformed or else agents of doom for the airline industry in Kenya."

The next three months are going to be most interesting for 1Time and Jetworx as various painful measures are implemented in order to see the two companies remain afloat.

►[UPDATE 29 AUGUST 2012] 1Time officially cuts Mombasa route as of 17 September 2012.

Wednesday, August 22, 2012

► SOUTH AFRICA: Financial vultures gather around a defiant 1Time as USD40million debt millstone takes its toll.

1Time
Financial news-wires were today abuzz with reports that following an urgent board meeting, 1Time Holdings, parent company to South African LCC 1Time (T6) and Jetworx Aircraft Services, had filed for "Business Rescue" for the two companies (essentially a 3 month long protection period from creditors that may want to file for liquidation while you are turning the business around, more or less equivalent to filing Chapter 11 in the US) as revelations came out that the company has nearly USD40million worth of short term debt to settle with creditors by 31 August, amongst whom are the South African Air Traffic and Navigation Services and various fuel suppliers. Unsurprisingly, by the end of trading today on the Johannesburg Stock Exchange, 1Time shares had plunged by 50%.

Under South African Law, 1Time should now pass into the hands of The South African Companies Intellectual Properties Commission (CIPC) who are responsible for approving a Nominated Business Practitioner who in turn will oversee 1Time's business plan reform process over the coming next three months.  How this will impact the airline's Zimbabwean LCC venture - Fresh Air - only recently launched, is uncertain.

An announcement by the CIPC on whether or not 1Time is eligible for "Business Rescue" will be made on Thursday 23 August.

1Time at Harare Airport, Zimbabwe
1Time in Zimbabwe. (Luck Brown)
The filing for "Business Rescue" comes after a very tumultuous first 6 months of the year for the South African carrier in which its previous CEO (Rod James) resigned following a disastrous record USD$18million loss for 2011 blamed on "high fuel prices, fierce competition, weak demand and steep spikes in airport and navigation taxes." In recent weeks, the airlines image has also been damaged as two of its McDonnell Douglas MD83s suffered engine shut downs inflight.

However, despite the bleak outlook, 1Time has managed to retain some prestige as the most punctual airline in South Africa for June and July. CEO Blacky Komani, too, has remained resolute stating:
"It is business as usual and passengers have nothing to fear."

This storm of events and their resultant dire consequences for 1Time are in stark contrast to that of Government run SAExpress (SAX), whose inability to produce audited financial results for their 2010/2011 Financial Year and a subsequent USD120million accounting hole, simply resulted in the dismissal of the board with no apparent legal action brought against anyone. Ah, such is life in the world of parastatals.

We here at The Tribune wish 1Time all the best, as this year so far has proven to be lethal for the South African aviation scene in general: LCC VelvetSky bit the dust in February after only 12 months in the air, whilst traditionally strong Comair Holdings (Kulula and BA Comair's parent company) also took heavy losses, and with global fuel prices set to remain above USD100 per barrel it seems we could be in for an even more interesting Q3 and Q4 for 2012.

Lets just hope that the path to financial solvency is conquered with spirit and innovation, not government handouts and mediocrity.


Sunday, July 8, 2012

► ZIMBABWE: 1Time to start Joburg to Harare and Vic Falls?

1TimeThe aviation rumour-mill here in Zimbabwe is awash with word that South African LCC 1Time (T6) has just completed a trial Johannesburg - Harare, Zimbabwe flight and will shortly commence service, though no official confirmation has yet been given by either 1Time or the Civil Aviation Authority of Zimbabwe (CAAZ).


1Time Route
1Time's Route Network.
In the recent past, Kulula, 1Time and the now-defunct LCC VelvetSky had battled to no avail, enormous red tape and CAAZ protective measures to acquire rights to service the very lucrative routes of Johannesburg - Harare, and Johannesburg - Victoria Falls where the average price for a return ticket from Harare to Joburg can cost anywhere from USD$440 to USD$600 using either South African Airways or BA Comair.

Until now these routes have been dominated by South African Airways, BA Comair and even Air Zimbabwe though with Air Zimbabwe facing possible liquidation, it seems likely that the Zimbabwean authorities would want to free up the route seeing as the only competitors on it, are now exclusively South African.
 
As mentioned above, 1Time is also looking at starting a service to Victoria Falls which, in theory, it does already serve, albeit on the Zambian side of the Falls - Livingstone.

Watch This Space.


Wednesday, May 30, 2012

► SOUTH AFRICA: 1Time drops Lanseria Airport hub.

1TimeSouth African LCC 1Time (T6) has announced that it is to cease its Lanseria Airport operations with effect from 2 June 2012, in order to better focus and consolidate its domestic and regional services out of Oliver Tambo International Airport, Johannesburg's largest airport.
1Time MD83
1Time McDonnell Douglas MD-83 at Johannesburg.
1time Airline CEO, Blacky Komani says that the retraction of the Lanseria routes was motivated by a decision to optimise its overall operations.
“We have taken the decision to consolidate all our local and regional flights from OR Tambo International Airport and concentrate on our African projects that are currently underway. Pending seasonal demand, and commercial viability of the airport, we may look at reviewing our Lanseria services in the future.”

The axing of Lanseria comes at a difficult financial time for 1Time, who recently went through a particularly rough patch whereby it posted losses amounting to USD$17million for 2011, followed by the resignation of its then CEO Rodney James.

Saturday, May 5, 2012

► SOUTH AFRICA: After heavy losses, new 1Time CEO outlines plans to turn around airline.

1TimeFollowing the resignation of Rodney James from both his posts as CEO and executive director of South African Low Cost Carrier 1Time (T6) after the airline posted a record USD$18million loss for 2011, new CEO Blacky Komani along with his managerial staff have, since the last quarter of 2011, adjusted airline scheduling, and  restructured 1time's Jetworx maintenance subsidiary to achieve higher operational efficiencies.
"It is continuing with plans to expand its route network into other parts of Africa. Chief executive Blacky Komani said it was considering three new destinations and expected to launch the first of its new services by June. 1Time was preparing to overcome protectionism that had been preventing cross-border services in Africa by forming partnerships with indigenous airlines in the three countries." 

Losses, mostly blamed on sharp increases in fuel and airport charges, and the weakening South African Rand, have been the primary factors that have hampered the industry for the year 2011. Passenger numbers were lower than budgeted for and average ticket prices were under pressure due to fierce competition from airlines like Comair BA, Kulula, Mango, SAA and the now grounded LCC Velvet Sky. 

Both 1time & Comair (who fly under Kulula & British Airways brands in South Africa) will be outcompeted by SAA, Mango & South African Express; if the SA government continues to underwrite their losses.