1Time Files for Bankruptcy

Date: 3 November 2012

8 years after its first flight in 2004, 1time airlines has grounded all of its flights and has filed for liquidation.

 

This comes after the airline's business rescue efforts did not rescue it from bankruptcy after it had incurred massive short-term debt, to the tune of R320 million, to creditors.

 

This move leaves thousands of 1time ticket holders stranded, and at this stage it is unclear what arrangements will be made for ticket holders to reach their destinations.

 

The demise of 1time, shortly after Velvet Sky's demise due to insolvent circumstances earlier in 2012, reduces the levels of competition in the South African airline market, and demonstrates how challenging the South African low cost flight market is.

 

There are concerns that the remaining low cost airlines will exercise market power and raise prices, now that consumers have less alternatives to choose from.

 

1time's liquidation application comes just weeks after it entered into a joint venture with a Zimbabwean airline to offer flights to Livingstone, Victoria Falls.