PAK Africa’s plan to purchase 1time Holdings for R15 million has many industry stakeholders scratching their heads.
Media reports recently surfaced stating that PAK Africa Aviation, a consortium of SA-based Pakistani investors, ditched the original idea to buy 1time Airline because of its R450 million debt and instead turned its attention toward the low-cost carrier’s holding company. PAK Africa Aviation plans to acquire its own fleet, initially serving the Harare-Johannesburg route from next month and later expanding to become a regional carrier. In Zimbabwe, the airline has partnered with Central Air Transport Services, which holds domestic and international air rights in that country. PAK Africa Aviation has also applied for an Air Services Licence (ASL) with the South African Department of Transport. 

Business Day reported that PAK Africa Aviation was awaiting regulatory approval from the JSE after presenting its business plan to the exchange. The investors had reportedly received ‘in principle’ agreement and support from the 1time board and shareholders making up 60% of the holding company’s shares. CEO of 1time Holdings, Blacky Komani, declined to comment on the proposed transaction. 

Aviwe Ndyamara of Tshwane Trust, 1time’s liquidator, said the deal would not affect 1time Airline in any way, and that the final liquidation of the LCC was set for October 3. He said Tshwane Trust had a pending application for the liquidation of 1time Holdings but couldn’t provide any further details as this was still at the negotiation stage. Aviwe added that 1time Holdings owed both Jetworx and 1time Airline money, which he believed it would be able to pay should it be bought.
So, why go through all the trouble of setting up a new carrier but use the brand of a failed airline whose reputation with the public and travel trade has been tarnished? 
PAK Africa believes it stands to gain from buying 1time Holdings and using the 1time brand. Tabassum Qadir, Chairwoman of PAK Africa Aviation, said: “The rationale for acquiring 1time Holdings is due to the corporate governance and transparency associated with a listed JSE company. The aviation sector requires huge investment and our parent company will have the necessary comfort levels required in capitalising a JSE-listed company.”
She says 1time has been in the market for over a decade and PAK Africa believes brand awareness and customer loyalty will prevail. She adds that 1time’s employees are the “true heroes who deserve a second chance in life” and that the deal will allow the “valued employees a chance to rebuild their lives”. Tabassum admits that the holding company currently has no assets apart from the cash PAK Africa plans to inject and the assets it intends to bring in.