Another small airline (Sun Air of South Africa) has been liquidated ... another dreadful example of many to come... hopefully not more!
How long does small airlines survive as small airlines? (persuming they don't grow)
Heres the article from www.sabcnews.com:
Sun Air liquidated
March 02, 2004, 07:54 PM
Sun Air, a domestic airline operating between Johannesburg and Cape Town, has been liquidated and all flights have been cancelled until further notice. Rowald Kresfelder, Sun Air's managing director, says the airline was liquidated at 5pm after suffering losses and developing a cash flow problem during the past four months. "We had a bad December, January and February and that caused the problem."
All flights had been cancelled and the airline would remain dormant until a new investor could be found. It was the second time Sun Air went belly up. The first time was in 1999 when it was run by British Airways/Comair. At that stage South African Airways (SAA) wanted to buy a 75% stake in the airline. The other 25% would have been owned by British Airways/Comair. SAA, however, withdrew its offer for the majority stake and Sun Air died a quiet death.
In March 2002 it was revived with two aircraft and two flights a day between Johannesburg and Cape Town. The new Sun Air catered for business executives and operated from the much quieter Lanseria airport north of Johannesburg, as opposed to Johannesburg International Airport in Kempton Park.
Sun Air tried to establish a niche market, according to Johan Botha, the then managing director. Sun Air's trade mark was its red leather seats on the two DC 9-32 planes and Botha was confident that the airline would prosper. Its owners were Airquarius Contracts (Pty) Ltd and Million Air Charter Limited. Earlier Kresfelder said the liquidation was "devastating" for the airline's 40 employees. - Sapa