Sunair Going Under?

[Jangys]

Does anyone have any information as to why Sunair gave a aircraft back to Million Air? I believe that they are going through a dificult time.

Cashflow is a problem as their employees only received their December salaries on the 06th January.

Any info?....

[PAXboy]

From an outsiders point of view ... it looks as if their only real PRACTICAL advantage is not using JNB. They have access to the rich northern suburbs via a terminal where they can just float through.

On the negative side, they have competition from SA and Comair and Nationwide for biz pax - all of whom offer corporate discounts based on total annual spend (which includes internal sectors. Also they have Frequent Flyer Schemes that are (or link to) international carriers.

The ability to score FFMs to use for taking the kiddies to Florida or the wife to Paris is something that cannot be ignored.

Also, the journey times in ZA are not that great, two hours? If the company want to save money, then going to CPT in 'Y' is not a big deal. Some companies used to offer to pay the full biz price but if the person went 'Y', then the person got 50% of the saving in their annual bonus. Neat. Hard cash in your pocket means something to most people.

I have to say that, when I heard this proposition, I thought it was bonkers. With Kulula and now 1 Time piling in and dropping the cost? Better to see a prospective client/client four times in two months for 'Y', than once in two months in 'C'.

[Boss Raptor]

28 Jan - Believe Millionair have given Sunair a deadline...days rather than weeks/months

[126,7]

This is whats written in today's press:

Everything "seems" peachy.
Following excerpt from the Mail and Guardian.

Executive airline Sun Air will cap its first year under new ownership with a profit, a new investment partner and expansion plans. General manager Robalt Keselder confirmed that a European investor has bought into the airline, "but would not like to be identified at this stage".

[planecrazi]

Millionair rescues Sun Air
03/02/2004 20:35__-_(SA)__

Cape Town - A listed air-charter company, Millionair, stood in for the debt of business-class airline, Sun Air, to which it rents planes, last week.

Johan Botha, managing director of Millionair, said on Tuesday they had decided to become more active in the management of Sun Air after the airline could not pay part of its monthly expenses.

He did not want to disclose the relevant amount.

Sun Air operates luxury business-class flights between Cape Town and Lanseria Airport in Gauteng.

Botha strongly denied the airline had been liquidated or that Millionair regained control over the company.

Millionair bought a 50% share in Sun Air about a year ago, but resold it to a debt management company, CIRC.

Botha said December and January were difficult months for an airline like Sun Air.

He said the airline was not affected by the current flood of cheaper airline tickets as it did not compete for the same market or operated from the same airport as low-cost operators.

Botha also denied the new low-cost airline, 1time, had a stake in Sun Air.

SunAir (http://www.finance24.co.za/Finance/Companies/0,,1518-24_1478488,00.html)

[orgasmotron]

Mmm.... Heard couple of Millionair/Sunair pilots mumble about not getting salaries yet. Maybe they are working for Sunair only. That would then make sense. Anybody know if Millionair is recruiting again ?. I believe they lost a few guys to 1 Time.

[Jangys]

Million Air is so far in debt themselves i really do not know how they can rescue Sunair.

Sunair employees only got paid their January salaries on the 5th of February. Creditors are standing que at Million Air doors to try and retrieve some cash for services renderred but not paid.

I believe Wesbank want to re-posses two of Million Air aircraft?

Looks like things are not going to well. Wonder what happens to the two hundred thousand bucks they make daily on ticket sales?

Sounds like someone is "washing" money.........

[orgasmotron]

I made some enquiries. All the crew operating Sunair works for Millionair. Spoke to a pilot there and he said that half the pilots left for new airline 1time. Millionair will not be employing any crew in the near future I heard.
Quite a pity. Hopes it all works out. Can only be good for aviation if all companies succeed. But then again, there must be reason for concern if half of the pilots starts leaving .

[Boss Raptor]

At 3 rotations a day, 50 pax (which I understand they arent achieving) and average R2199 $332 approx bucks return they are only taking $50K a day

[Jangys]

Believe Million Air kicked out the Sunair bosses, and is now managing Sunair.

;)

[Jangys]

Sunair lost another two captains from their fleet of DC9 aircraft. They now have a total of 3 captains and 4 first officers to run a 6 flight a day, Sunair schedule.

:confused: :confused: :confused: