Comair Take on 1Time Liquidation

South African aviation company Comair has responded to the news that budget airline 1Time filed for liquidation on Friday.

In the process, Comair pointed out that 10 of the 11 independent, private airlines launched in South Africa since deregulation in 1991, have failed, leaving only kulula.com and British Airways, which are both operated by Comair.

“Due to the less efficient fleet it operated, the ultimate closure of 1Time was inevitable,” said Erik Venter, CEO of Comair.

“However, we are certain that in the absence of state-subsidised Mango, 1Time would have made adequate profits to upgrade its fleet and be sustainable over the long term.

Based on the previously released financial statements of SAA, and recent parliamentary comments, Mango made a loss of half a billion rand since its 2006 launch, due to undercutting the viability of the private low cost carriers.” 1Time announced on Friday that it had applied for business liquidation, and that all of its flights had been grounded.

The firm had about R320-million in short-term debt and had been in negotiations with creditors since March.

Gigaba Clips Wings of SA Express Board

South Africa’s Public Enterprises Minister, Malusi Gigaba, has fired the board of the state-owned regional airline, South African Express, after the airline failed to present audited financial statements.
With the exception of Bridget Ssamula, the entire board was removed, because of its failure to present its 2011-12 financial statements to Gigaba at its annual general meeting.
 This comes after South African Express’s accounts were withdrawn last year, after it emerged that they were unreliable. The auditors cited numerous significant adjustments which were not substantiated with the appropriate audit evidence, reportable irregularities and cast doubt over the future of SA Express.
 A new board has been appointed and the chairperson is Andile Mabizela, who has a background in strategy, aviation and law.
He will be supported by a board of directors and their primary mandate is to turn the airline around. The newly-appointed board is required to address a number of critical issues facing the airline - among those: crisis management, stabilising operations and building brand and reputational confidence.