■ TANZANIA: Air Tanzania streamlines its operations with hefty staff lay-offs.

National carrier, Air Tanzania (TC), has joined the growing list of Tanzanian airlines that have been forced to trim their workforces down with reports that 128 out its original 300-strong staff have now been let go.

■ ZIMBABWE: Five managers sent on forced leave as forensic audit reveals deadwood at Air Zimbabwe.

Air Zimbabwe's (UM) newly appointed board has begun to wield the axe on deadwood found following the preliminary results of an audit which revealed "some" irregularities at the parastatal.

■ TUNISIA: Tunisair gets greenlight to proceed with job cuts but no word yet from unions.

Tunisian national carrier Tunisair (TU) has received the greenlight from government to proceed with the downsizing of the company announced in 2012 which will see the loss of 1'700 jobs, though the airline's all powerful unions have yet to come on board.

► MALAWI: Air Malawi ceases all flights as new foreign investor to be announced in due course.

Malawi's beleaguered national carrier, Air Malawi (QM), has officially ceased flights with 243 employees also having been laid off, as the airline is liquidated in preparation for the founding of a new privatized venture, Air Malawi 2012.

■ KENYA: Hunt on for new Kenya Airways' Commercial Director after Mohan Chandra's contract is not renewed.

Kenya Airways (KQ) has appointed its Head of Network Planning, Jimmy Kebati, as its interim Commercial Director, after previous director, Mohan Chandra's contract was not renewed upon its expiration on 18 January.

■ SOUTH AFRICA: 1Time to retire two aircraft and shed 15% of workforce as part of cost cutting measures.

As part of its fight to remain afloat financially, troubled South African LCC, 1Time (T6), has announced that it is to cut its fleet down from 10 to 8 aircraft with plans to trim its workforce down by 15%.

■ KENYA: Defying Odinga, Kenya Airways completes its redundancy drive.

Defying a directive (or request, depending on whose point of view you take) from Kenya's Prime Minister Raila Odinga, to cease its planned redundancy drive, Kenya Airways (KQ) today announced the successful completion of its Staff Rationalization programme with 126 employees choosing the early retirement option whilst another 454 were made redundant.

►► SOUTH AFRICA: "Business Rescue Specialist" appointed to 1Time earning workforce a reprieve but some routes to face the axe.

Following on from our report last week that South African firm 1Time Holdings had declared its two subsidiaries, LCC 1Time (T6) and maintenance arm JetWorx, to be in financial distress, the South African Companies Intellectual Properties Commission (CIPC), has approved a Nominated Business Practitioner (NBP) to oversee 1Time's business plan reform process over the coming next three months - Gerhard Holtzhauzen, CEO of Strategic Turnaround Solutions, has been appointed.

Holtzhauzen was positive about the company's potential: "We have a head-start because a turnaround strategy for 1time has been contemplated by a proactive management team."

Source [BusinessDay]

During "Business Rescue", a distressed company is given a 3 month long protection period from creditors while the business is (hopefully) turned around - more or less equivalent to filing Chapter 11 in the US. The company will continue to operate normally though there will obviously be a review of the airline's operations and current routes in order to cut away the deadwood and retain the most profitable ones.

Meanwhile, the news given some breathing room to both companies, in particular to Jetworx whose trade union Solidarity, was last week warned the division faced job cuts of up to 25%. The appointment of NBP Gerhard Holtzhauzen has meant the job cuts will be deferred, though not necessarily abandoned.

"During yesterday’s consultation, we were informed that the process had been put off for the time being owing to the appointment of a business rescue specialist. The specialist must draw up a refinancing and restructuring plan for the company. The company will also be given the opportunity to develop and to implement a business rescue plan and to carry on its operations at the same time. 1time Holdings, Jetworx and the business rescue specialist will be requested in a letter to involve Solidarity in the process.” Solidarity spokesperson Marius Croucamp said.

Source [Solidarity]

  

Blacky Komani - 1Time CEO (CP)

In addition, unprofitable routes may also go, with the first rumoured to be 1Time's service to Mombasa, Kenya, though the reason for dropping the route may have more to do with soaring costs and charges in Kenya, than 1Times own internal woes.

"If this is true [1Time's withdrawal from Mombasa], other airlines might follow if charges keep going up. Authorities at times in the past just raised fees with little notice and until fares are adjusted the carriers have to absorb that added cost. Proposals in the new VAT bill spell doom for aviation in Kenya, like moving from an exempt status to a double digit tax figure. Those who drafted the bill are either totally uninformed or else agents of doom for the airline industry in Kenya."

Source [Wolfganghthome]

The next three months are going to be most interesting for 1Time and Jetworx as various painful measures are implemented in order to see the two companies remain afloat.

►[UPDATE 29 AUGUST 2012] 1Time officially cuts Mombasa route as of 17 September 2012.