Showing posts with label Jetworx. Show all posts
Showing posts with label Jetworx. Show all posts

Monday, May 20, 2013

■ SOUTH AFRICA: Pakistan's PAKAfrica Aviation eyes majority stake in 1Time Holdings, including Jetworx.

A new potential buyer for bankrupt LCC 1Time (T4), has emerged in the form of PAKAfrica Aviation, a Pakistani aviation group, who have pitched USD1.6million (ZAR15million) for a "controlling stake" in South African firm, 1Time Holdings, owners of the LCC along with its MRO wing, JetWorx.

Saturday, January 12, 2013

■ SOUTH AFRICA: 1Time's Jetworx MRO to be taken over by the American Industrial Acquisition Corporation.

JetworxIn another promising development following the proposed acquisition of bankrupt South African LCC 1Time (T6) by LCC fastjet (FN), its sister MRO company, Jetworx, has been acquired by the American Industrial Acquisition Corporation (AIAC), thereby giving hope to its remaining 200 employees. The deal however, is still subject to approval by Jetworx creditors.

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.

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.