irline 1Time Holdings has filed for business rescue, Business Day reported on Wednesday.
The airline’s board said it required business rescue because it was “financially distressed”.
The firm had about R320-million in short-term debt and had been in negotiations with creditors since March.
So, it seems that 1Time Airlines are on the way out as well, after the demise of the short lived Velvet Sky.
1Time chief executive Blacky Komani told newspapers that the airline would continue scheduled services, despite filing for a business rescue plan to bail them out of a whopping R320 million Rand debt.
So who really benefits from all the airlines low prices ? Is it the consumer or the airlines? Well, we know that the airlines certainly dont benefit as almost half of the low cost carriers are now in serious debt or are closing down. What will happen if there are only 1 or 2 low cost carriers in operation ? Simple, monopoly pricing will set in and we will be forced to pay higher prices again. Makes one think a little doesn’t it. All the complaining we do about exorbitant pricing actually ends up coming back and biting us in the proverbial you know what!
So, next time you are looking for cheap flights and there are none – remember where it all began. Perhaps 1Time will manage to bail themselves out of this hole, who really knows.