Picture: SUNDAY TIMES
Pic­ture: SUN­DAY TIMES

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

Arti­cle Posted On Busi­ness Day Live Click Here to see the article