Jasondn
Topic Author
Posts: 111
Joined: Sat Nov 10, 2007 4:13 pm

Velvet Sky In South Africa Faces Liquidation

Sat Feb 25, 2012 12:19 pm

Does not sound like any good news for the newest LCC start up in South Africa. From my understanding, unless additional funding is found by 5 March and the creditor BP is paid, then that will be the end.

http://www.fin24.com/Companies/Trave...n-application-postponed-20120224-2
http://www.eyewitnessnews.co.za/Story.aspx?Id=83403
http://www.iol.co.za/dailynews/fuel-row-grounds-velvet-sky-1.1242056


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BlatantEcho
Posts: 1815
Joined: Wed Sep 27, 2000 10:11 am

RE: Velvet Sky In South Africa Faces Liquidation

Sat Feb 25, 2012 3:27 pm

I flew JNB-CPT yesterday and the Velvet Sky gates were a mess.

People were being told there was a delay every two hours... Some people had been waiting since 6am for their flight and every 2 hours they were told the delay would be two more hours....

Not a lot of happy people there yesterday.
They're not handing trophies out today
 
Jasondn
Topic Author
Posts: 111
Joined: Sat Nov 10, 2007 4:13 pm

RE: Velvet Sky In South Africa Faces Liquidation

Mon Feb 27, 2012 3:44 pm

Velvet Sky has ceased operations until 5 March.

Sad day - thoughts go to all the employees

http://www.news24.com/SouthAfrica/Ne...lvet-Sky-flights-grounded-20120227

I wonder if they will return to the skies.
 
SA7700
Posts: 2940
Joined: Thu Dec 18, 2003 9:38 pm

RE: Velvet Sky In South Africa Faces Liquidation

Mon Feb 27, 2012 4:11 pm

My apologies for being cynical but I knew they would not last. Competition is fierce on the so-called "Golden Triangle" while business people does not seem to realize, IMHO, that there are extremely good opportunities available on secondary routes with the proper air fleet in place.



Rgds

SA7700
When you are doing stuff that nobody has done before, there is no manual – Kevin McCloud (Grand Designs)
 
PezySPU
Posts: 281
Joined: Mon Dec 12, 2011 1:27 pm

RE: Velvet Sky In South Africa Faces Liquidation

Mon Feb 27, 2012 8:07 pm

Quoting Jasondn (Reply 2):

The article is a bit unclear, it says the company ceased ops due to the "unavailability of fuel". I guess it means suppliers were requesting advance payments which Velvet couldn't provide as it ran out of cash?
 
SA7700
Posts: 2940
Joined: Thu Dec 18, 2003 9:38 pm

RE: Velvet Sky In South Africa Faces Liquidation

Mon Feb 27, 2012 9:01 pm

I'm no airline economist, but this should immediately raise red flags:

BP's attorney Thulani Mciwa said in court papers that in view of Velvet Sky's obvious credit difficulties it would not be able to obtain aviation fuel from any major fuel companies in South Africa.

He had heard that Velvet Sky was living from hand to mouth by using credit cards to buy small amounts of fuel from other sources.


Velvet Sky liquidation application postponed


Rgds

SA7700
When you are doing stuff that nobody has done before, there is no manual – Kevin McCloud (Grand Designs)
 
bennett123
Posts: 7425
Joined: Sun Aug 15, 2004 12:49 am

RE: Velvet Sky In South Africa Faces Liquidation

Mon Feb 27, 2012 9:40 pm

Seems that it nearly lasted 1 year.

http://www.airfleets.net/flottecie/Velvet%20Sky-active-b737.htm

All the planes are leased, so it will be RTL.

Seems likely that it will disappear pretty quickly.

Hopefully the staff will soon find new jobs.

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