1time founders to fly again

2012-11-09 12:08

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1time hopes for a lifeline

2012-11-06 09:28

Embattled low-cost airline 1time is pinning its hopes for a cash injection on British investors. WATCH

Johannesburg - While 1time's liquidation seems imminent, with the final closure court date set for 11 December, former 1time founders have applied to the Air Services Licensing Council (ASLC) for a licence to start a low-cost airline.

Moneyweb reports that an e-mailed statement from the Department of Transport states that Rodney James, the previous CEO of 1Time Airlines Pty Ltd and previous shareholders of 1time Airlines Pty Ltd, had applied for a license.
 
An application by Cobolar Pty Ltd was considered on November 7, and published on October 5 2012 on Government Notice no. 714 of 2012, the department said.

The report said the airline will not be flying under this name but that the model presented to the ALSC was that of a low-cost airline.

Meanwhile, Fin24 reports that Acsa believes reports blaming the company for 1time's demise to be incorrect.

"We were very supportive throughout," said Acsa spokesperson Solomon Makgale.

1time was put under provisional liquidation by the North Gauteng High Court on Wednesday after a failed attempt to rescue the business.

Business rescue allows companies in financial distress to be rehabilitated under supervision and subject to a court order.

A business rescue plan had been submitted for the airline, and then withdrawn.

Acsa had been advised that a new plan would be available this month, but the liquidation had been filed before the new plan was issued.

1time's decision to cancel all flights with immediate effect last Friday had come as a surprise, Makgale said.

1time was a client "and as such Acsa's wish for the airline was for it to find a way out of its financial difficulties", he said.

But Acsa had had no option but to balance its interest with those of the broader aviation industry.

An agreement had been reached to put 1time on cash terms.

"This was a way of ensuring that the overall debt did not escalate further," Makgale said.

"The decision by 1time to file for liquidation was solely theirs."

Earlier, 1time's business rescue practitioner castigated Acsa's "overall negative attitude".

"Acsa was only interested in recovering all its debts without considering the ripple effect this might have on the airline's operations," said Gerhard Holtzhauzen.

Acsa was the airline's largest creditor, claiming R147m.
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