Cash-strapped Nationwide ceases operations
Nationwide Airline has ceased operations until further notice, the airline announced on Tuesday.
“Our cash-flow has become critical and as a result have decided to voluntarily cease all flight operations until further notice,” said chief executive Vernon Bricknell.
“We apologise to our loyal customers for any and all inconveniences experienced.”
In a statement, Bricknell referred to an incident in which an engine fell off one of its planes on its departure from Cape Town International Airport in November last year.
“Subsequent to this, a protracted grounding of our fleet was mandated by the SA Civil Aviation Authority.
“In the months of December and January, we resumed operations and attained a gradual recovery of the business. However, in the months of March and April we faced a 30% increase in fuel costs coupled with a decrease in passenger load factors,” Bricknell said.
“Throughout this period, we continued to work towards securing investment by a black empowerment consortium, which unfortunately has not come to fruition.” - Sapa.