Troubled local aviation maintenance company to be taken over by American group
US takeover and turnaround specialist American Industrial Acquisition Corporation (AIAC) has, South African trade union Solidarity reported on Tuesday, agreed to buy South African aviation maintenance, repair and overhaul (MRO) company Jetworx. The South African company was the MRO business of low-cost airline 1time, which was placed in provisional liquidation in November.
Jetworx, which itself is currently in a business rescue process, still has some 200 employees. The trade union is hopeful that AIAC’s decision to buy all the extended shares of the local MRO company will save the jobs of Jetworx’s remaining workers.
“Before being placed in a process of business rescue in August 2012, Jetworx had already retrenched about 200 of its nearly 400 employees,” pointed out Soldarity spokesperson Johan Kruger. “While Jetworx was in business rescue, retrenchments were stopped for the time being. After 1time was placed under preliminary liquidation, Jetworx was, however, obliged to consider further retrenchments.”
A new business plan for the South African company is set to be released on January 15. Thereafter, the enterprise’s creditors will vote on whether they will accept the plan or not. Solidarity hopes that not only will the new business plan be accepted and the company saved, but that the workers who were retrenched last year might be re-recruited by it.
Jetworx specialises in the maintenance and repair of Boeing 727 and 737, McDonnell Douglas DC9 and MD80 and Lockheed Martin L382 Hercules aircraft. It can also overhaul a number of components. The company is certified by the South African Civil Aviation Authority, the US Federal Aviation Administration and the European Aviation Safety Agency.
AIAC sums up its business as “turnaround industrial development and management”. It was “founded on the principle of acquiring underperforming companies and helping those companies to survive and thrive.”
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