The sale of low cost airline 1time fell through at the last minute on Friday and an application to provisionally liquidate the company will be lodged today, according to the Solidarity trade union.
Marius Croucamp, Solidarity’s spokesperson, said British low-cost airline FastJet Plc was interested in buying 1time. “The company pulled out of the transaction at the last minute, however. 1time’s management met with the business rescue practitioner on Friday morning after this setback, after which it was decided to apply for liquidation as a last resort. The court application for provisional liquidation will be lodged today.”
Croucamp said 1time’s estimated 540 employees are now out of work. “This morning during a staff meeting, employees were asked to complete forms according to which they are preferential claimants and could be first in line to get paid should the company be liquidated. Solidarity hopes that a lifeline can still be found for 1time during the process of liquidation.”
According to Croucamp, there is no truth to reports that 1time Holdings’ subsidiary and maintenance arm, Jetworx, has also applied for liquidation. “A large portion of Jetworx’s operations was with 1time and we are concerned about the consequences to Jetworx of the low-cost airline’s application for liquidation. Solidarity is expected to get greater clarity in this regard when it meets with Jetworx tomorrow.”
Jetworx and 1time Airline were placed under business rescue in August due to financial difficulties caused by low demand and high operating costs, especially fuel costs.
1time ceased operating at 3 pm on Friday.
