WHEN SKYWISE ceased operations on 2 December 2015, it led to a panic as many customers had already paid for their tickets. This reminded me of a Premier Soccer League coach who once said, “I have seen this movie before”.
I have seen this movie before with the demise of 1Time. In my journal article, The demise of 1Time Airline and the reaction of various interest groups, I detailed the history of the demise of this low cost airline, which shut down on 2 November 2012.
The airline industry is very competitive and 2015 was possibly one of the most difficult trading years in South Africa, due to the rand’s depreciation, the hike in interest rates, and a general poor trading environment. Furthermore, the costs of operating an airline were higher because of the dollar/rand exchange rate.