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Skywise debt ripples down value chain - Acsa

Skywise debt ripples down value chain - Acsa

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9th December 2015

By: News24Wire

  

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Johannesburg - Airports Company South Africa (Acsa) stands by its conditions for lifting the suspension of low-cost airline Skywise's flights.

In a statement issued late on Tuesday afternoon, Acsa said it maintains that its decision is informed by what is in the best interests and sustainability of its business.

"Acsa wishes to state that it is not the only supplier that is owed money by Skywise amongst multiple stakeholders in the airline’s operational value chain," Acsa pointed out.

"It is regrettable that Acsa’s position on unpaid service fees is being viewed in isolation, despite many stakeholders being instrumental in ensuring an airline’s continued operation."

Earlier on Tuesday Acsa notified Skywise that it is not in a position to accede to the low-cost airline's suggested payment terms for outstanding debt as well as future charges.

Acsa suspended Skywise's flights on December 2 owing to unpaid airport charges for landing, take off, parking of aircraft and related service charges. The Air Services Licensing Council will meet on December 9 in order to determine whether Skywise can resume flights again on December 10.

Skywise has already appealed to President Jacob Zuma, Deputy President Cyril Ramaphosa, Minister of Transport Dipuo Peters, Acsa and South African Airways (SAA) for assistance. It is also looking for investors to come forward by Tuesday.

On Monday, even the airline's brand ambassador Ndileka Mandela, a granddaughter of Nelson Mandela, expressed the wish that the authorities would resolve the issue of Skywise's grounding of flights.

Acsa CEO Bongani Maseko informed Skywise co-chair Tabassum Qadir that granting additional further relaxed terms to Skywise and lifting the temporary suspension may have macroeconomic effects on the organisation.

"Acsa is unable to accommodate such a request, as this may set a precedent which may compromise the organisation in the market and affect our sustainability as an organisation," according to Maseko.

Acsa is, therefore, holding Skywise to payment terms agreed to on September 16. This involves a weekly pre-payment of R931 892.90 to reflect on Mondays by 10:00 as well as a payment of R1.63-million in six monthly instalments from October 1 to March 1, 2016, towards Skywise's arrears of R9.57-million.

Due to a reduced flight schedule by Skywise, Acsa reduced the weekly pre-payments due as from October 28, 2015, to R670 523.68 to reflect by 10:00 on Mondays.

On the other hand, Skywise proposed to Acsa on Monday to pay R500 000 immediately and then go on "pay-as-you-fly" from December 15.

In addition, Skywise proposed to pay off its arrears at R50 000 a day starting from January 15, 2016. The airline said it has obtained bridging finance on condition that Acsa accepts its proposed payment terms.

News24.com

Edited by News24Wire

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