1time reports "poor" financial performance
2012-10-30 08:48
Cape Town - Troubled budget airline company, 1time Holdings has reported a loss of R43,5 million in the first six months of the year. Announcing its interim financial results for the period ending on June 30, 2012, they declared their performance poor compared with the R33,9 million loss for the same period last year.
Tourism Update reports that 1time CEO Blacky Komani said that the incurred loss of the airline was due to new route developments, namely Lanseria and Mombasa - both launched in the early part of 2012. The financial results show that the Lanseria and Mombasa routes resulted in losses of R16,8 million and R8 million respectively over a six month period. Both routes have since been put on hold, until the core business returns to profitability.
The group continued to say that fuel, airport charges and ground handling costs constituted 80% of the airline's operating cost, which increased 30% year-on-year. According to the group, this drove up the overall operating cost base by 25%, which was only partially offset by an increase of 11% in revenue in the airline.
BDLive reports that under the proposed business rescue plan - if it gets the nod from creditors who hold at least 75% of its short-term debt - the company will seek support from its shareholders to follow their rights in a rights issue which the rescue plan estimates could raise R60m to R80m.
This cash will be used for working capital and also to settle payments to be paid to staff who will have to be retrenched following a downsizing of the business.
