Nationwide out of liquidation?
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Nationwide out of liquidation?
Hi guys i got this from avcom.
Nationwide Airlines could soon come out of liquidation and be taken over by a new airline that will begin operating from Durban International Airport in three months.
A proposal to buy the airline is on the table.
If the process to accept and finalise the proposal goes ahead smoothly, the new airline will start operations in a few months, in time for the busy festive season.
Whether the new airline would operate under the Nationwide name or start afresh with a new identity is still being discussed.
This move would come on the back of a recent announcement by Emirates Airlines to abandon plans for direct flights between Durban and Dubai due to high fuel costs.
Haroon Laher, a Johannesburg insolvency attorney representing Nationwide, said he was in the process of drafting legal documents following a successful meeting with the potential buyer this week.
A meeting between the company's attorneys and the liquidators will take place next week before the process goes further.
"We have a very, very good proposal. But it is dependent on the liquidators' input.
"The consequences of an acceptable transaction by the liquidators is that the company will come out of liquidation and a compromise will be sought regarding liabilities to all creditors.
"All employees will be considered for re-employment (by the new company)," he said.
Laher said there was a process to be followed and it was difficult to say when, if the proposal was accepted by the liquidators, the new company would begin operating.
"But if all goes well and there are no hiccups, it could start in about three or four months' time.
"At best, it could be in three months," he said.
He said obstacles to a swift start-up by the new company would be if a creditor was unhappy with the structure of the deal or refused to accept the compromise made in the amount paid to them.
While Laher would not give details regarding the identity of the potential buyer or what kind of airline would be operated, sources said it would operate as a low-cost airline to rival kulula.com, 1Time and Mango.
Laher also confirmed that there were strong indications the company would use Durban as its headquarters.
Nationwide chief executive Vernon Bricknell will not be retained to carry the company forward, but his expertise and knowledge may be used by the company during its launch.
Some members of the airline's management team may also be considered for employment.
Some key employees in Durban have already been contacted to establish their availability should the new airline take off.
Rumours that the interested party was associated with Dubai could not be confirmed.
Nationwide was provisionally liquidated at the end of April after suffering the knocks of losing an engine late last year and the subsequent grounding of its fleet during the festive season.
The final nail in its coffin was when a black economic empowerment deal with African General Equity fell through.
A proposal to buy the airline is on the table.
If the process to accept and finalise the proposal goes ahead smoothly, the new airline will start operations in a few months, in time for the busy festive season.
Whether the new airline would operate under the Nationwide name or start afresh with a new identity is still being discussed.
This move would come on the back of a recent announcement by Emirates Airlines to abandon plans for direct flights between Durban and Dubai due to high fuel costs.
Haroon Laher, a Johannesburg insolvency attorney representing Nationwide, said he was in the process of drafting legal documents following a successful meeting with the potential buyer this week.
A meeting between the company's attorneys and the liquidators will take place next week before the process goes further.
"We have a very, very good proposal. But it is dependent on the liquidators' input.
"The consequences of an acceptable transaction by the liquidators is that the company will come out of liquidation and a compromise will be sought regarding liabilities to all creditors.
"All employees will be considered for re-employment (by the new company)," he said.
Laher said there was a process to be followed and it was difficult to say when, if the proposal was accepted by the liquidators, the new company would begin operating.
"But if all goes well and there are no hiccups, it could start in about three or four months' time.
"At best, it could be in three months," he said.
He said obstacles to a swift start-up by the new company would be if a creditor was unhappy with the structure of the deal or refused to accept the compromise made in the amount paid to them.
While Laher would not give details regarding the identity of the potential buyer or what kind of airline would be operated, sources said it would operate as a low-cost airline to rival kulula.com, 1Time and Mango.
Laher also confirmed that there were strong indications the company would use Durban as its headquarters.
Nationwide chief executive Vernon Bricknell will not be retained to carry the company forward, but his expertise and knowledge may be used by the company during its launch.
Some members of the airline's management team may also be considered for employment.
Some key employees in Durban have already been contacted to establish their availability should the new airline take off.
Rumours that the interested party was associated with Dubai could not be confirmed.
Nationwide was provisionally liquidated at the end of April after suffering the knocks of losing an engine late last year and the subsequent grounding of its fleet during the festive season.
The final nail in its coffin was when a black economic empowerment deal with African General Equity fell through.
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Nationwide
Well it is sort of good news I suppose - too late for a lot of people who have had to move on.
They have a mountain to climb in getting re-established whether or not they use the Nationwide name and livery. Customer loyalty and confidence has taken a huge knock.
Still - there is a lot of money in Dubai which may help. Remember the first lesson in aviation "what makes an aeroplane fly"? "Money"
Good luck. I hope they succeed.
They have a mountain to climb in getting re-established whether or not they use the Nationwide name and livery. Customer loyalty and confidence has taken a huge knock.
Still - there is a lot of money in Dubai which may help. Remember the first lesson in aviation "what makes an aeroplane fly"? "Money"
Good luck. I hope they succeed.
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A LCC (to compete with the other three)....based in Durban (?)....using B732's (I'm assuming, despite the suicidal fuel bill implications)....using VB's 'expertise' (ie pay staff nothing, employ and train to the barest minimum)....and possibly retaining some 'members of the management team' (who did such an awesome job before, and were so well loved by all employees 
)....
.....surely they can't be serious?
Nonetheless, best of luck - I believe they will need it.
).........surely they can't be serious?
Nonetheless, best of luck - I believe they will need it.
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I agree, don't go for a rotten apple, rather buy one or two brand-new AC out of the box, keep low staff numbers = low staff overhead/maintanance costs, good payload, low fuelburn.
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There is no Nationwide to buy, the only things worth any money were the AOC and routes. Both Charter and Airlines AOC's have been revoked by CAA as well as the routes by the Air Licencing Council. A new AOC is at least a 6month excersise so I think thes is all BS from Vermin and Co to kep the wolves at bay in the vain hope that they'll get their money. But I could be wrong.
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It woluld be good if it could happen, but SRT you have the right point.
Worldwide the operators with the 'thristiest' fleets are going to be the ones that struggle the most.
My 5 cents worth. Someone tell me if i'm on the wrong wavelengh.
Keep it tidy.
Worldwide the operators with the 'thristiest' fleets are going to be the ones that struggle the most.
My 5 cents worth. Someone tell me if i'm on the wrong wavelengh.
Keep it tidy.
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Solid Rust Twotter:
Who said anything about using the existing fleet? As far as I could understand, Nationwide the airline does not own any aircraft, they only leased them from an associated company.
Perhaps all the new buyer is purchasing is the AOC?
Current fuel price and an aging, thirsty fleet?
Perhaps all the new buyer is purchasing is the AOC?
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Takes the same amount of time
same amount of time to buy the AOC as it is to issue a new one....(technically, you cannot buy the AOC.......please no arguing on that one, I am merely replying to DeanW).
Goffel.....about to wing his way to the States..
Goffel.....about to wing his way to the States..
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positive climb, gear up
In my experience, until you are in the flight deck and hear the words "positive climb"....."Gear up" they're all rumours. But will be good for the pilots on the street, if there are any from Nationwide. Seems the boys have been absorbed by the industry.... a blessing in disguise for most of them...
