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Showing posts with label SA Express. Show all posts
Showing posts with label SA Express. Show all posts

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.


Friday, July 6, 2012

► CONGO (KINSHASA): Korongo boosts frequencies/capacity to Kinshasa & Johannesburg.

Korongo Airlines
Lubumbashi-based Congolese carrier Korongo Airlines (ZC) is to increase both capacity and frequency on its routes to Johannesburg, South Africa and Kinshasa, DRC with effect from 1 September 2012.

Korongo 737
Korongo Airlines Boeing 737-300 (Pixstel)
Korongo Airlines: Lubumbashi, DRC – Johannesburg, South Africa
-Frequency increases from 2x to 4x weekly
  • ZC123 FBM0730 – 0945JNB 733 4
  • ZC123 FBM1510 – 1730JNB 733 137
  • ZC124 JNB1130 – 1350FBM 733 5
  • ZC124 JNB1845 – 2105FBM 733 13
  • ZC124 JNB1850 – 2110FBM 733 7
Korongo Airlines: Lubumbashi, DRC – Kinshasa, DRC
-All flights to operate with Boeing 737-300 instead of 3x weekly B737/Bae146.
  • ZC101 FBM0730 – 0850FIH 733 137
  • ZC105 FBM1655 – 1845FIH 733 256
  • ZC102 FIH1020 – 1340FBM 733 137
  • ZC106 FIH1945 – 2305FBM 733 256

Korongo Airlines started operations in April 2012 and is a joint-venture between Brussels Airlines and the Belgian multinational Groupe George Forrest International, with full support from Brussels Airlines' parent company Lufthansa.

Since its inception, Korongo has attempted to carve out a niche for itself in the lucrative, albeit accident and bureaucracy infested quagmire that is the Congolese aviation market. In the past, many foreign based airlines have failed where Korongo is attempting to succeed, the most recent casualty of which was South African Express' Congo subsidiary, Congo Express.

Tuesday, May 15, 2012

► RWANDA: Bombardier's Q400 roadshow ends in Kigali.

BombardierCanadian aircraft manufacturer Bombardier Aerospace has just concluded its tour in Africa showcasing its successful Q400 turboprop aircraft, having started in West Africa, before coming to East and Southern Africa, in hopes of attracting potential customers. 

Monday, May 7, 2012

► SOUTH AFRICA: SA Express to start Durban - Lusaka from July; Zimbabwe, DRC, Malawi to follow.

SA ExpressThe Zambian Government has approved SA Express' (XZ) application to start Durban - Lusaka from July 2012, using a CRJ-200 Regional Jet on a 3x weekly frequency with the possibility of increasing to 6x weekly, given route viability.
"Company communications manager Lulu Bam, however said dates for the inaugural flight will be announced after all is set.She said the new route is an extremely important market for the airline in view of the vast economic growth adding that, “Lusaka is a fastest growing economy with potential for growth since it has a lot of demand and it is a preferable market for SA companies.” Ms Bam said Harare, Democratic Republic of Congo and Malawi will be considered in the near future."
Read More Here[Daily Mail Zambia]