Aviation industry analysts are torn over whether there is money to be made for those who dare to tread on the runway.
Low-cost airline 1Time says its scheduled services will go ahead despite filing for business rescue to dig it out of R320-million of debt.
The troubled Velvet Sky airline, which owes R100-million to creditors, has been liquidated by the Pietermaritzburg High Court.
Velvet Sky's licence agreement has a clause that stipulates it must set aside sufficient funds to pay back cash clients should it go out of business.
The two beleaguered companies have a number of business consultants and associates in common.
Velvet Sky's attorney has withdrawn from its liquidation case, citing personal reasons -- after being implicated in a mining-related fraud case.
Troubled low-cost airline Velvet Sky stands accused by petrol giant BP of resorting to "desperate cash-raising measures to stave off bankruptcy".
When big airline operators are losing money it is no wonder that the smaller guys are cautious writes Phillip de Wet.
All Velvet Sky flights have been suspended until March 5, while the airline reconstitutes its board and balance sheet and realigns its strategy.
The new airline Velvet Sky hired a director and advisers of failed mining company Aurora Empowerment Systems to help "grow the company".