Battling low cost carrier, 1time airlines is expected to retrench up to 15 percent of their staff and cut out existing routes that are not profitable due to a poor financial situation.
Government recently made the unpopular decision of giving South African Airways (SAA) a R5 billion guarantee which the smaller airlines feel gives them an unfair competitive advantage.
1time CEO, Blacky Komani says that the downsizing is vital for keeping costs down.
“There is about a 30% cut in our fleet. The fixed course that goes with that has to be proportional to the number of aircraft that we are operating. Part of that involves us exiting routes that are not profitable and maintaining routes that are profitable for the airline,” Komani said.
It was also mentioned that should the airline return to profitability, some of the staff will be re-employed.