Monday, 30 April 2012

1Time - Budget Airline, existence threatened as liabilities exceed assets

Does another one of the low cost airlines bite the DUST !!

Moneyweb REF :

"CEO outlines plan to turnaround the airline.


JOHANNESBURG - Airline 1time Holdings has more liabilities than assets, casting “significant doubt” on its existence, 1time’s auditors said.

Liabilities exceed assets by R295 million, Nexia SAB&T said in a statement distributed on Thursday by 1time.

The low-cost airline’s CEO Blacky Komani told the SAfm Market Update with Moneyweb “when you make these losses, they are quite substantial. But what we've done is to approach a South African-based institution to say we need to refinance our fleet, because part of our big loss is based on the leasing costs that are paid in foreign currency. So we make losses on foreign currency conversion, as well as on the interest rate. So we've taken a view that a three-year strategy is what we need to have. Year one, contain the costs; year two, get to break-even point; and year three get to a profitable situation”.

Komani also added that the company would become more flexible in the scheduling of its flights and consider flying to other destinations in southern Africa.



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