The airline first announced the decision on Facebook and Twitter on Monday, and later issued a statement via its owners, Excalibur Aerospace.
“As a result of recent events, the negative impact on business, and adverse publicity, Excalibur Aerospace wishes to announce a suspension of all its Velvet Sky flights, from Monday, February 27 until Monday, March 5, 2012,” it said on Facebook.
Next Monday, the airline is expected to oppose an application to be provisionally liquidated, brought by BP Southern Africa which is reportedly owed R29 million by Velvet Sky.
The company also owes money to SAA Technical and, following a commercial spat last week, has changed service providers.
This had resulted in delayed flights on Wednesday and cancelled flights on Thursday.
Further delays were experienced since Friday, when the airline took flight again. But on Monday it suspended all flights.
Excalibur Aerospace chairman Stephen Nthite said the decision to suspend flights had not been taken lightly and was not an indication that the airline was unable to resolve its problems.
“The suspension of flights will allow the company time to reconstitute its board and balance sheet and realign its short-term strategy.
“It will also allow the company time to properly resolve disputes with certain suppliers and service providers… The board is confident that the long-term outlook for Velvet Sky remains positive and that current developments will significantly improve Velvet Sky’s position,” he said.
Velvet Sky was launched amid much fanfare as SA’s only fully operational, 100 percent broad-based black economic empowerment airline.
The airline said it had since made a “significant impact” in the market, carrying more 300 000 passengers in its first year and quadrupling its capacity.
Originally serving Joburg, Durban and Cape Town with a single aircraft, it now has five Boeing 737s.
A group of people gathered at the Velvet Sky offices at King Shaka International airport on Monday as word of the suspended flights spread.
Akile Mamade was due to fly to Joburg with two others on Tuesday. “I asked them (Velvet Sky staff) how they could help me and they said we must book with other airlines.”
Mamade and his relatives were forced to book with another airline, incurring extra costs.
“We all signed application for refund forms and they said we will get the monies back after seven to 10 working days,” he said.
An Umhlanga couple were also upset. They said they had booked in January for a Joburg flight on Friday.
“We planned a trip with our three children and we have to spend more money now,” the man said. “We have no choice… It would have been better if they had refunded us today (Monday).”
The airline said customers holding reservations for dates during the suspension period could choose to change their bookings to a later date, or apply for a refund.
Customers could e-mail reservations@flyvelvetsky.com or call 0861 835 838. - The Mercury
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