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YOUR STORY
Flights of fancy
30/04/2008 10:24  - (SA)  

  • 'I can't believe it'
  • Nationwide: Rivals step in
  • Q&A: A bleak future for Nationwide?
  • Nationwide: next step unclear
  • Nationwide halts operations
  • Unathi Kondile, News24 User

    Your flight to London is scheduled for 15:00 and you're running late - you gun the accelerator of your rented car, traffic cameras flash, you encounter two near-accident situations and finally you arrive at OR Tambo. You dash to the ticket counter - but no one is at home. It says "Nationwide!'"

    Suddenly your tummy grumbles - something's not right - you look around and all the other airline counters are busy. You check you ticket. It says 29 April 2008. You've been late before but never this late for a plane - so late that even the staff have packed and gone.

    You call Nationwide's call centre, but there's no response. You talk to fellow passengers and no one knows what's happening until you take out your laptop (assuming you have one) and go straight to Nationwide's website. Instead of ticket reservations and other promotional animated web banners, you come across this:

    29 April 2008 - 13h00
    On the 7th November 2007, Nationwide Airlines experienced an engine separation from a Boeing 737-200 on departure from Cape Town. Subsequent to this a protracted grounding of our fleet was mandated by the South African Civil Aviation Authority.

    In the months of December and January we resumed operations and attained a gradual recovery of the business however in the months of March and April we faced a 30% increase in fuel costs coupled with a decrease in passenger load factors.

    Throughout this period we continued to work towards securing investment by a black empowerment consortium which unfortunately has not come to fruition.

    Our cash-flow has become critical and as a result have decided to voluntarily cease all flight operations until further notice. We apologise to our loyal customers for any and all inconveniences experienced.

    At that point you feel heaven coming down. You stare vaguely at the parked/grounded Nationwide planes along the runway. And wonder how on earth an airline jumps ship like that.

    Going AWOL

    Yes, we know it's a two day working week, but that doesn't mean you can just go AWOL on your passengers. And then to top it off you go and blame BEE for your problems! Saying garbage such as a black empowerment deal didn't come to fruition hence you decided to hit the road. Go on Nationwide! Blame it on the blacks!

    But any fool can tell you that when you run something such as an airline business - you usually foresee cash flow problems kilometres away. You usually plan and notify customers, staff and the public of your forthcoming hard times and you eventually stop selling tickets in advance.

    So why did Nationwide continue? It's not like we had a natural disaster last night - they saw this coming. Now there are people lurking around aimlessly in airports, constantly being reminded not to leave their baggage lying around and wondering how on earth they're going to get to their destinations.

    This time Nationwide has dug way beyond 6ft, and I doubt anyone with a proper mind will ever book a flight with them should they ever decide to come back to business.

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    Disclaimer: News24 encourages freedom of speech and the expression of diverse views. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors reserve the right to edit or delete any and all comments received.

     
     

     
         
      Not BEE's fault.
    30/04/2008 10:34
    Nationwide's directors can't even organise a sunday school picnic. A BEE cash injection (or any cash injection) surely would have helped them for a while, but the BEE guys SAW that they'll lose money in the end. It also totally disgusts me that they allow people to book flights and take people's cash when they KNOW that the flights won't take off! Sick! - Juan
     
      Nationwide
    30/04/2008 10:35
    I like your thinking, i chose to boycott Nationwide in November after the engine separation episode. I may have adopted a "forgive and forget" attitude over time but after this little event, i'll certainly not fly them. Fortunately i don't think i'll need to exercise my actions cos i think they have gone for good. Not sure about the BEE reasoning but the $'s of oil is certainly the primary factor. - John Camp
     
      Nationwide
    30/04/2008 10:35
    Booking a ticket with a cheap airline has its risks as people are now learning. Don't let this be a wasted lesson. - frank
     
      Unathi
    30/04/2008 10:39
    if you use your thinking capacity to its minimum you will realise that this is only the beginning of a crisis in South Africa. There are much more surprises in store my friend. High fuel costs, High Interest rates, less people travelling due to high living costs, High food costs, more retrenchements due to high costs, and yes no one is blaming the Black man, it is just that they are doing such a fantastic job in Govt. that we are extremely excited about the future prospects of this country. - navs
     
      Last minute!
    30/04/2008 10:40
    Although airlines go bang, I cannot believe they pulled people off a plane to Cape Town (international tourists) and cancelled their plane. That is just money grabbing to save a tank of fuel. They should have honoured all flights that day, put out alert at lunch and cancelled from the next day onwards (refunding etc). Disgusting. - AJ
     
      Poor, poor service delivery
    30/04/2008 10:47
    We better get used to poor service delivery, it seems its becoming a trend. Last year I got ridicules service from SA Road link. The bus came an hour late, and get this?stopped across the road from the designated waiting area reflected on my ticket. Buy the time I ran across the four lane road with a suit case full of luggage and back pack the bus had already left, despite my ranting, raving and swearing. I thought all was not lost and called the call center?No apology, no sympathy. It was made out to be my fault. After a few minutes they assured me the bus would turn around for me. Three hours (in the rain) and loads of airtime later I decided to call it a day. Still no apology?..I will never take SA road Link again. - Ram
     
      Selective reading on your part Unathi
    30/04/2008 10:48
    They're not blaming BEE. They're closing down due to an increase in costs - 30% increase in fuel costs coupled with a decrease in passengers (brought on by the engine episode last year). On top of all this, they have also spent a lot of money on trying to secure a BEE deal which left them near-bankrupt. BEE deals dont' come cheap - and will be the reason for many more companies to go bankrupt simply because they cannot afford it. "White companies" do not have unlimited resources. - J.O
     
      Reading a bit deep
    30/04/2008 10:49
    Interesting that you are lambasting them for blaming BEE. What closed-mindedness. They put that in saying they were in trouble, and tried to get a cash injection from another company which was BlackEmpowered, but it didn't work out. Their problems started before that. Grow up and get some perspective. What business who is struggling with cash flow will tell its customers, as that is the #1 surefire way of turning customers away. - MJ
     
      cash
    30/04/2008 10:53
    First off: flights are paid for by passengers in advance (so no matter when they canceled the flight it would be last minute for some people). Maybe V tried to keep the company going as long as possible, but has now decided he can't? Second: the airline does not get any money from the ticket until the flights are completed (this is how IATA members can carry other flight's passengers). The money is only transferred once the flight has gone. - pilot
     
      When did they stop..
    30/04/2008 10:55
    selling tickets online, certainly not before they decided to jump ship. Does it not constitute some kind of fraud when you know you are going to close down the next day, but still accepts payments for tickets? Skelms? But you missed the BEE thing, they're not blaming it, they blame the fuel costs, the BEE deal just fell through, no wonder! - Also
     
      Nationwide
    30/04/2008 10:56
    Frank i agree with the risks of booking with cheap ticket airlines. Except Nationwide aren't classified as budget airlines, they fall into the same category as SAA and Comair. Juan i fully agree with your sentiments, it's disgusting that an organisation can continue to take money KNOWING what's coming down the line. At least honour the bookings you have or make provisions for your "loyal customers" with alternate travel. - John Camp
     
      I read your...
    30/04/2008 11:01
    article up until you said they blame the black man. Didn't bother after that. - TruthBeTold
     
      navs
    30/04/2008 11:01
    Do you mean overseas they don't have high interest rates,less people travelling due to high cost of living,high food cost,more retrenchment? Do you ever read or listen to international news? - Godfrey
     
      Blame it on the Blacks!
    30/04/2008 11:03
    I cannot see where Vernon Bricknell of Nationwide blamed the closure on BEE. He simply noted that they had failed to secure BEE funding that would have bailed them out. That is not, unless one is hyper-sensitive, blaming it on BEE, blacks or anyone. It was a simple statement of fact. BEE may have its faults, but rushing too late to the aid of a failing company is stupid in any language. - Xme
     
      Reply to Ram
    30/04/2008 11:06
    Sa Road Link should not be allowed to get away with such bad service. Expose them on Hellopeter.co.za - carol
     
      Reasons
    30/04/2008 11:06
    Number 1. The business was the life of the owner. His lifes work disappears down the drain. Number 2. The employees are scared of unemployment. Number 3. We have no chapter 11 in S.A. - Sentinel
     
      Nationwide
    30/04/2008 11:18
    I agree in part with Unathi. The way Nationwide treated their passengers (ie customers) is disgusting. It says to me that they do not think they will ever fly again. Talk about "burning bridges"! After this behaviour, nobody in their right minds will fly with them - should they, against all odds, resurrect this airline. - Anne
     
      State of affair
    30/04/2008 11:21
    I am pleased that no AA, EE quotas & BEE will be blamed. This company is being managed by the so called "skilled white executives". The last time it was Leisure Net, Saambou and the list is endless. South Africa is full of Arthur Browns & his ilk. It seems that laziness, sheer incompetence & inefficience amongst white personnel is the order of the day. Hence they are prepared to emigrate en masse. I feel pity for Australia and the likes. - Maleshatane
     
      Concur with TruthBeTold
    30/04/2008 11:23
    ........enough said... - Grant7
     
      I see some investors lurking around the corner...
    30/04/2008 11:23
    Who might invest now to uplift the company's image again? mmm... I wonder... - ElectroMan
     
      BEE?
    30/04/2008 11:30
    Why everything in our country has to include race? Unathi grow up dude, no one blamed the BEE dude, learn to read, understand and then you can write your column. Get your facts straight first before commenting, race had nothing to do with Nationwide's disaster, the reason was pure business and not BEE. Stop playing the race card, our country don't need people like you. - Mthimbane
     
      Drive
    30/04/2008 11:32
    I drive! It's more scenic but alas that taxi....! Taxis are BEE aren't they? Bring Emergency Equipment!!! - Win
     
      Godfrey Godfrey Godfrey
    30/04/2008 11:45
    It is pointless going into denial like all your fellow race does. This country is in serious crisis. This airline started the trend an many more companies will follow suite. Admit the crisis and deal with it rather than playing it on a low key and facing a disaster. Good example (electricity) Blacks simply do not know what they are doing in these strategic positions. Hear them on the TV giving a speech and they use impressive words out of context and that is laughable.Educate and then dictate!! - navs
     
      LOL
    30/04/2008 11:53
    "It seems that laziness, sheer incompetence & inefficience amongst white personnel is the order of the day. Hence they are prepared to emigrate en masse. I feel pity for Australia and the likes. - Maleshatane" Best laugh I had the whole day, thanks man. Giving white people black people characters, brilliant. - padkos
     
      nationwide
    30/04/2008 11:55
    Oh, for God's sake, an airline going broke is reduced to racial terms. Have we all gone mad. The airline went broke because they didn't look after their planes correctly. An engine fell off. That's pretty bad in flying terms. But, the engine was neither white nor black (for those who must!) and fell off because, it seemed, that Nationwide was playing a little fast on parts. Well, they deserved to go out of business. Don't play with my life to save money, or any of my fellow South Africans. - Big Mart
     
      Airlines are that way
    30/04/2008 11:57
    Remember Flitestar? Phoenix? They all went out the same way as Nationwide, so don't be surprised at the suddenness of it all. They will sell tickets right up to the last minute. I just hope that 1Time is still OK when I have to fly with them in June (I've booked and paid already)....:] - Dave Robbins
     
      Rattling Planes
    30/04/2008 11:59
    I once flew from London to J'Burg with Nationwide and I was shocked at the condition of the aircraft! It was old and rattled so much that most of the passengers on my side of the plane had a few irish coffees after dinner just to relax a bit. I had 3 very strong ones, prayed, and eventually I fell asleep. Neither me nor any of my friends and family will ever use Nationwide again - EVER! - UKBoertjie
     
      Mthimbane
    30/04/2008 12:03
    What Unathi and Maleshatane are saying is that every problem in SA (including the petrol price, food price increases, etc) is blamed on the ?incompetent blacks? ruling this country. Now these whites are not hammering Nationwide with the same race-based verve they are used to. Why? Some time back most of these whites said that an events company that had brought Celine Dion to SA and which did a shabby job, must have been BEE-black-owned given its name. The truth is it was white-owned-and-run and no word was heard form this self-righteous whites again! - Mkhokheli
     
      Vernon Koekemoer to the rescue
    30/04/2008 12:04
    He can carry the planes to where they need to be. Two at a time even. I've seen it. - Me
     
      @Maleshatane
    30/04/2008 12:08
    I feel you brother. These are the same people who buy copper cables stolen from Eskom & Telkom in order to run their steel factories. Ask yourself what would a black poor man do with a copper cable. They are also the same people who buy stolen cars and sell them at their car dealerships. What hardship the white man has brought to our motherland. - Azania
     
      Alec Erwin
    30/04/2008 12:13
    Dear Mr Erwin where is Nationwides R4 Billion, just like u gave to SAA last year, BTW SAA still making huge losses why are u not indignified about that, seeing as they using out Tax money to keep them going, best of luck to the NTW employee, Comair is hiring I have heard. - Mike
     
      Land of adventurers and raceteers
    30/04/2008 12:15
    The last time it was Leisure Net, Saambou and the list is endless. South Africa is full of Arthur Browns & his ilk. That unfortunately is true. BEE incompetence is accelerating this demise. The white regime at least had a solid backbone which buffered corruption. - Sentinel
     
      sad
    30/04/2008 12:24
    I for one am sad that nationwide has gone under. I have flown with them several times and found them professional and the staff kind and courteous. They were in fact my airline of choice in SA. - frequent flyer
     
      what were they supposed to do?
    30/04/2008 12:29
    ...tell potential customers back in March that they were a bit short of cash and may not be able to guarantee flights in April? I'm no businessman, but if that's what Unathi believed Nationwide should have done, then he's completely lost the plot. The BEE deal would have injected cash into the company to keep it operating. When that deal crashed on Saturday, Nationwide had no option but to pull the plug. I never flew Nationwide anyway....they had the highest prices and crappiest planes. - jeremy
     
      world wide problem
    30/04/2008 12:39
    I was in the US a couple of weeks ago. During 1 week, 3 airlines had to shut down. The other day, a 4th US airline had to shut down. Maybe IATA / ICAO has to seriously investigate and re-invent the entire industry. - Lithium
     
      The end of Nationwide & Refunds
    30/04/2008 13:05
    It is a sad day to see an airline fold, especially in South Africa. However, they are not the only privately-run airline in SA, so THAT can't be the reason they closed. As for refunds, if they don't have cash, how do you expect to get a refund?. Write it off to experience and move on. - Bob
     
      Nationwide
    30/04/2008 13:07
    I live in London and was scheduled (and had paid for) for me and my family to fly out with them in December. I'm getting no information from Aviareps - their UK representative. Any suggestions on who I could speak with? This is obviously devestating news for me and my family. - Matthew
     
      To Maleshatane
    30/04/2008 13:10
    I have stopped commenting on News 24 in general, BUT, your comment must be the best I have read for a while. Dude, you should become a stand-up comedian and go practice your talent in Bloem. W.R.T the Nationwide crises, has anyone concidered why the regulator kept them grounded for such a long time even when they had resolved all issues? Why is it that SAA get a cash injection every time they mess up? Is this fair trade? Maybe the lack of BEE status was to blame after all. - Antelope
     
      <<>>
    30/04/2008 13:12
    I have flow in all the airlines avaialble in South Africa. Below is a listing of some of the shortfalls and qualities: #1 Nationwide: cheap, excellent service #2 1Time: cheap, good service #3 Mango: more expensive, service OK #4 SAA: Expensive, terrible service SAD to see them go....Tough business times ahead. - Mtimkulu frequent flyer
     
      Race!
    30/04/2008 13:17
    I can't believe that an airline closing down has prompted yet another race agrument! Serioulsy, how are we ever going to sort out this country with these attitudes? A deal fell through and a company had no choice but to close because of increasing fuel prices etc!. STOP WITH THE RACE ISSUE ALL THE TIME - IT'S GETING BORING NOW!!! - JC
     
      @Azania
    30/04/2008 13:20
    I would like to fold you up neatly,put you in an envelope (stamped with "DO NOT return to sender" if possible) and post you off to Outer Mongolia (if they will have you).You racist idiot! - The Truth
     
      Nationwide
    30/04/2008 13:21
    No BEE, AA, SAA, Mbeki or Mugabe to blame this time round - the CEO cocked this up all on his own. Guess it's payback time for standing on lots of "little" people in an attempt to get to the top? Well, the wheel has turned, as it inevitably does. Nice one Vernon!!! - Sean
     
      Mkhokheli,...
    30/04/2008 13:23
    You are the man, you are 120% correct. The management of Nationwide should have seen 5 years ago that they needed black investors, but instead they waited until they were bankrupt and then invited BEE partners who were clever enough to turn them down. - Revolver
     
      True, but...
    30/04/2008 13:30
    "And then to top it off you go and blame BEE for your problems!". I suggest you read their notice again, carefully. This is not what they said (or implied) at all. Don't fall into the stereotypical over-sensitive race fight. "Go on Nationwide! Blame it on the blacks!" is a warning sign that you need to step back and think about what you're saying (and why you're saying it). Not run around, arms in the air, shouting such rubbish. - Ryan
     
      Hypocrisy
    30/04/2008 14:01
    During apartheid these white-owned companies were sustained through cheap black labour. Now they are exposed to competition and open environment, they choke one by one (Alexander Forbes, Saambou, LeisureNet, Nationwide, Eskom); but yu still hear whites with the gall to say AA/BEE is to blame for all problems in SA. Pity white self-righteousness ... - Mkhokheli
     
      SA Denialists
    30/04/2008 14:10
    Problems (fuel, inflation, etc) facing Nationwide are not unique to them - they're not the only private airline. The BEE deal never came through - so why do they even mention it as part of the reasons of their fall? The BEE deal's failure is made to seem like the straw that broke their camel's back. Looking for a scapegoat I see? SA Denialists must stop denying this. I'm not playing no race card - just wondering why they had to go and mention black economic empowerment in their mess-up. - Unathi
     
      Unathi - SA's Economic Guru
    30/04/2008 14:22
    Unathi you biscuit. You saw a gap & took maximum advantage of it by using the race/BEE card. Instead of thinking about those losing their jobs, Unathi blames BEE. As much as I would like to explain to you what the BEE deal would have done for Nationwide, & its employees, I think it's going to be beyond your intellectual capability to understand & comprehend. This just the start of companies folding under the current economic climate. Watch this space. - Al
     
      Unathi & all his followers ( Mkhokheli and comrades)
    30/04/2008 15:06
    Al sums it up for you, no need for further explanations : (This is just the start of companies folding under the current economic climate. Watch this space. - Al) We need a miracle to save this country. The Fat Black cats have stashed millions in overseas accounts, and the poorest blacks (masses) are still voting foe these mongrels. - navs
     
      The fewer planes in the air, the better
    30/04/2008 15:24
    The fewer the arilines in the skies, the better for the environment. - WHO-CARES?
     
         
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