Oh No 1time
 

What is happening at 1time, dropping Lanseria? What next?
To many cooks spoil the broth!:ugh:

Whatever dude. Must they fly with bad loads then? Would that make you happy? Stop panicking about nonsense. Airline is in trouble, just like every other one that isn't state owned.

Sadly its beginning to look unrecoverable. Hopfull they can pull a rabbit out of the hat.

That's not ambigious at all.

Their management is making a genuine attempt to sort their mess out and they need all the support they can get!

Makes sense to consolidate their operations to one airport - reduce costs, ground staff, etc etc etc

Forget consolidating, why did they expand to Lanseria in the first place? They only have only been operating from FALA for 3 months and they are already leaving, and on the Durban route they last only 6 weeks before canning the route. Was any market research done to see if their customer had any interest?

Scheduled routes take time and money to establish. LCC require high load factors to break even. To be the third carrier on a well serviced route and expect to fill the aircraft from the get go is just unrealistic.

There is no plan, its just desperation. Sadly 1time is about outa time.

They expanded to lanseria because that has always been their plan. Remember the 1 time office has been in that terminal at lanseria for 3 years, from what I understand is it was legalities that prevented them from operating out of there years ago, as a certain other low cost carrier was trying to hold the monopoly.....mango's loads are no better than 1 times out of lanseria(have flown with them a couple of times....)Fact of the matter is consolidating is the only way forward, they have to concentrate on their high yield routes, which is exactly what they are doing, their is no money for expansion at this stage. The new management have got things right, acsa's on time departure stats prove this(2nd most on time airline for the past 4 months) whether or not it *is to late I am not sure, only time will tell ......it will be a very sad day for aviation in SA if 1 time does not work out, one step closer to the national carrier having full control of the market, the day that happens, I'll buy myself a fancy car and drive......good luck 1 time!

Few people thought 1Time would survive more than a few months. They've lasted about 8 years, so I would guess they're doing their sums right, as they don't seem to have unlimited backing like the orange lot and the green lot.

I've never flown 1Time as I have reasons for preferring SAA and Mango, but there does need to be competition and I would be very sorry indeed to see 1Time go. Good luck to them.

Expanding to a new route because it "has always been your plan" is stupid, stupid, stupid. Markets and feasability change all the time, just because it was a good idea 3 years ago doesn't mean it's a good idea today. Bad call going there!

I find it amazing that kulula somehow seems to breeze by so well that people believe it has 'unlimited backing'. Nothing could be further from the truth, and they (Comair) are surely feeling the effects of the current economic climate. The only people with 'unlimited backing' are SAA (and thus Mango, however much they may deny).

I really hope 1Time manages to survive, they seem to have carved their own niche. Still, they seem to have gotten a little fixated on Lanseria, having been fighting to use it for quite a while now. I guess they just had to see for themselves? Closing down a lossmaking (I assume) route doesn't mean the end of the world though.

Is 1time selling Jetworx.

The Green Lot
 

As a shareholder of BA/Comair (which includes Kulula) may I also point out that the company does not have unlimited funds! It has produced a profit for 62 consecutive years, something no other airline has ever done, but that record was destroyed by ACSA, thanks to their jacking up airport charges to unreasonable levels.
The share price has gone down, and there has only been one dividend in the last five years or so. I hold on in hope!

redbar0nis 1time selling Jetworx?

I do believe they are sir.;)

That's good to know, but I feel there has to be some sort of cross subsidy, for example preferential tariffs on maintenance, leasing fees, and so on. I don't believe - I may be wrong - that Kulula is a 100% unsupported operation.

That's just a rumour. Who would buy it, and why? You will be liable for the company debt as well. Liquidation is much cheapet and more practical.

Ha ha ha, you clearly do not have any idea what is going on! The cost of setting up an amo in sa the size of jetworks is astronomical! There will be a line of people waiting to buy it!!!its already established, they'll just sell it for nothing as a going concern with its debt and work force. And from a very realiable source that is much more than a rumouir, guess we'll just have to wait and see! Seems there are some big plans on the cards, pilots seem positive, I'm sure everything will come out by the end of this week.

The cost of buying something that is balance sheet and cash flow insolvent happens to be astronomical as well. Please get your facts straight before becoming condescending. The intent is apparently to sell it, but the claim that it is imminent is merely a rumour. I have it from a reliable source (their DFO) that they cannot guarantee paying salaries at the end of this month. Also, third party work for Jetworx is limited, the majority of their revenue stems from the maintenance performed for 1time, which is directly linked to the existence of the airline. So, no, I have a very good idea what is going on, like any person with a brain and functioning senses. Would you like to go do some homework before your next bold little claim?

PS. you cannot sell a section of a holdings company as a going concern if it isn't. Last time I checked current liabilities exceeded current assests, so the new owner would be liable to settle ALL outstanding debts as well as paying the purchase fee. Very, very expensive move for a very risky investment.

I apologize if that came across as condescending. I also wonder if the DFO would agree with what you have written above. Not being able to pay salaries has nothing to do with the company being sold. Disbanding the company is a very viable option. I have a very good understanding of balance sheets, and you are quiet correct, it is not an option( for a south African based company) to buy jetworx. Having been involved with aircraft engineering, I am extremely aware of how much it costs to set up an amo the size of jetworx.....there are many MANY international companies interested in getting involved in the industry in Africa. It would be much cheaper for one of these companies to acquire jetworx as a going concern with it's debt than try and set up an amo taking into account all the red tape that will be involved. As for statement regarding third party work, that is not true at all. There is a huge amount of third party work available. Jetworx hasn't been able to acquire a lot of third party work as there concerntration has been on 1time, and their capacity for handling more than the demands of 1 time is not great. Argument aside, I'm sure we will all know the fate of 1 time in the near future.

Apologies for my overreaction...long day. Look, you do have a point. Either way, hopegully there is some sort of development soon. I can only imagine the level of anxiety experienced by the staff at this point...

At the current share price of 8c the total value of all the shares issued by 1Time Holdings is only a little over R20m. This includes Jetworx, airline charters etc.

So how much of that value is attributable to Jetworx? Considering its a loss making AMO with a debt issue and its only customer is in distress I'm guessing the queue of buyers may be short and the sale price to be modest.