Time called on low-cost SA airline

Low-cost South African Airline 1time has been granted provisional liquidation by the high court in Pretoria after a failed attempt to rescue the business.

On Tuesday Dr Gerhard Holtzhauzen, 1time’s business rescue practitioner filed an application for the termination of the Business Rescue proceedings and for the airline to be placed under provisional liquidation.

The North Gauteng High Court subsequently issued a provisional liquidation order on Wednesday November 7 2012, and decreed that the return date for the order would be December 11 2012, at which time the court will rule on the final closure of the business.

In a statement, 1Time chief executive officer Blacky Komani said: “The business rescue practitioner has advised that there are no reasonable prospects of survival as a potential financier notified us this afternoon that they are no longer able to invest in our airline.

''It is therefore with the utmost regret, disappointment and heartfelt disbelief that we have to file for liquidation, which means the end of a dream and an era for all of us.”

The Pan African News Agency, PANAPRESS, reported that the airline has about $40 million in short-term debt and had been in negotiations with creditors since March.

“1Time's filing for business liquidation is a major setback for the local and regional domestic tourism market," the chairman of the Tourism Business Council of South Africa (TBCSA), Mavuso Msimang told PANAPRESS.

''And as the country heads towards the festive season, the impending liquidation process is a major blow for customers and the broader tourism business community,” said the chief executive officer of the Airline Association of South Africa (AASA), Chris Zweigenthal told the news agency.