29 April 2008

Nationwide shuts down. Fuel claims first African Airline in the crisis

This is a post from our sister blog. Sorry - I posted it wrong!

Confirmed - Nationwide has shut down
Efforts will be mounted to restart Nationwide which has a large labor force but prospects look bleak at this point.

The South African HVC was unable to compete with the LCCs in its market - 1Time, Mango and Kulula. Despite making a good run. The delay in resolving the BEE (Black Economic Empowerment) element at a time when cashflow was critical finally crushed the carrier.

Of the 3 LCCs - we believe that Fly Mango (supported by Government funds) with the Orange Planes and Kulula with the lime green ones are well positioned with BEE concluded. 1Time with the red planes is also BEE as required by the aviation charter. However without the support of the ZA government, it has found itself hard pressed with a gas guzzler of a fleet. Still strict adherence to the LCC model is sustaining them.

Labels: 1Time, Comair, Kulula, Mango

Fuel Claims Another Victim - Nationwide South Africa Stops Flying
According to reports coming from South Africa - Nationwide Airlines the low cost airline serving Domestic South Africa main markets, Lusaka in Zambia and a 4x a week JNB-LGW service has stopped flying from mid day today.

As yes these reports are not officially confirmed but you cannot reach their call center.

With a largely old fleet the airline has been severely impacted by the fuel price surge. Last year one of their older planes had an interesting mishap when an engine seperated from the aircraft just after takeoff. The airline was grounded for some time until checks were made.

There have been numerous airlines that have shut down in the last 12 months. Fuel cost has been the largest culprit.

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