1Time's Global bid still up in the air

Published Jan 24, 2017

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Johannesburg - Low-cost airline 1Time, which operated flights between 2004 and 2012, on Monday told shareholders there had been no new developments in its planned acquisition of Global Airways.

In 2013, 1Time announced it had entered into a binding agreement with Global Aviation Holdings and Pak Africa Trade Zone to acquire the entire share capital of the British Virgin Islands-based Global Airways for R21.6 million.

The transaction was expected to culminate in 1Time’s resurrection after the airline ceased operations.

1Time was founded in 2003 and operations began in February 2004. Operations ceased in November 2012 and went into liquidation. According to its website, 1Time’s fleet included the McDonnel Douglas MD-82 3 as well as the MD-83 5 and the MD-87 3.

It had flights to Cape Town, Durban, East London, Tanzania, Zambia, and Zimbabwe. At some stage, 1Time had about15 percent of the South African market, carrying 2 million passengers a year.

Linden Birns, managing director of Plane Talking, said on Monday that 1Time was among a number of airlines which failed because of reliance on the use of wrong aircraft. He said the airline was using old planes that were suitable for as long as global oil prices stayed low.

“The aircraft was maintenance intensive. They were not fuel efficient. The older the aircraft, the more expensive it is.

"As soon as the oil prices increased, their profits went out the window,” he said.

He said when it closed, 1Time was ready to buy fuel efficient aircraft.

Read also:  1time passengers out in the cold

“[British airline] EasyJet was changing fleet and was willing to sell them. 1Time's board took long to decide. EasyJet found another buyer. So they were stuck with old aircraft,” he said.

1Time was candid about its problems. In a commentary on results for the six months ended June 30, 2012, the airline said it had continued to struggle financially.

It blamed “cost pressures” pertaining to the oil price, saying these had negatively affected profitability.

“Legacy debts and aircraft lease costs that were incurred in the run-up to 2010, have impacted negatively on the core parts of the business. The operating environment for domestic commercial airlines has also been tough during the period under consideration, with the market still working through an excess capacity overhang that forced low ticket prices on off-peak schedules,” 1Time said at the time.

In that period 1Time reported a net loss of R35.8 million.

CAPE ARGUS

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