'1time did not ask for state bailout'

2012-10-08 07:55
1time (File)

1time (File)

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Johannesburg - Embattled low-cost airline 1time says it has proposed better trading conditions for the aviation industry and has not asked for a bailout, following inaccurate reports that it made the request just days after the treasury granted SAA its R5 billion loan to get itself out of hot water.

According to a 1time press release, its business rescue practitioners sent a white paper, entitled Airline Industry Subsidisation, to various ministerial bodies on Tuesday, 2 October 2012.  

The three-page document covered the state of the low-cost industry, the specialised employment opportunities that 1time had created for its 1100+ employees and 500+ service providers, challenges pertaining to costs and revenue structures, as well as the importance of fair competition and choice for consumers. 

The document proposed that government considers subsidising the airline industry as a whole with selected levies and taxes, and not only offer "unfair bail outs to the national carrier, South African Airways."

The low-cost airline's white paper requested assistance for the following:

“A reduction in the fuel levy and taxes to the Aviation industry to reduce the significant cost of fuel.”

“A reduction in statutory levies and taxes the likes of charges by Airports Company of South Africa, Air Traffic Navigation Services, South African Civil Aviation Authority, South African Weather Services and the likes.”

“These reductions in turn flow into the industry as a subsidy and benefit all and achieve the job retentions whilst supporting the consumer needs for travel and tourism.”

The release stated that 1time "has never asked for a hand out and was merely reiterating that the industry is operating under very difficult trading conditions and could do with a hand-up." 

According to 1time, the subsidies from government would benefit the industry as well as the travelling public by keeping fares as low and competitive as possible.

Govenrment has not responded to the request as yet.
Read more on:    1time  |  saa  |  economy  |  travel south africa  |  aviation  |  flights


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