1TIME HOLDING announced on Tuesday that it had placed its subsidiaries 1time Airline and Jetworx, a maintenance arm, under business rescue
1TIME CEO Blacky Komani gave no guarantees that passengers with prepurchased tickets would reach their destinations on the carrier in three months’ time. But he said they could apply for a refund should their flights be cancelled.
1time Holdings announced on Tuesday that it had placed its subsidiaries 1time Airline and Jetworx, a maintenance arm, under business rescue. 1time was trading at 9c on Friday off a high of 63c in May 2011.
Komani said the business rescue plan would include a review of the airline’s operations and current routes and would concentrate on those that were most profitable.
But soaring fuel prices, salaries and airport taxes — as well as stagnating demand — have hit the entire airline industry, resulting in the closure of a host of other low-cost carriers, Velvet Sky being the most recent.
Business rescue is a temporary measure that gives a company a period of legal protection from creditors in which it can formulate a turnaround plan.
In terms of the process, the distressed company nominates a business practitioner to oversee the turnaround process. Gerhard Holtzhauzen, CEO of Strategic Turnaround Solutions, has been appointed.
For the next three months, Jetworx and 1time Airline will operate under Holtzhauzen’s temporary supervision. Komani said the company had the support of its big creditors.
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.”
*This article was first published in Sunday Times: Business Times
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