Johannesburg - Velvet Sky's future will depend on the
outcome of BP's application to have the low-cost airline provisionally
liquidated, chief operating officer Gary Webb said on Monday.
"It's going to depend on this BP motion... so we are
awaiting that judgment to see what the next move is, but we are hoping for a
positive outcome," he said.
On February 24, BP Southern applied to the Pietermaritzburg
High Court for the provisional liquidation of the airline, which allegedly owes
BP R29m for aviation fuel.
The airline was given until Monday, March 5 to file court
papers in response to BP's application. The court would hear arguments from
both parties on Wednesday.
BP said Velvet Sky had breached its undertaking to pay
arrears by February 17, and had not kept up to date with current payments for
Webb said there were three possible outcomes to the court
application - a postponement, a denial of the application, or the granting of
the application. When asked if the airline would be able to afford to resume
flights, Webb said: "As soon as that motion disappears then our cash
The day before the first court hearing, Velvet Sky cancelled
all flights. Webb at the time said this was due to a dispute with a service
provider, as they were in the process of changing service providers, but this
was not concluded in time to operate.
Last Monday, the airline announced all flights would be
suspended. Flights remained suspended on Monday.
"The suspension 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," the company said in a statement at the time.
Velvet Sky said customers holding reservations for dates
during the suspension could change their bookings to a later date, or apply for
The broad-based black economic empowerment company is based
in Durban and flies between that city, Johannesburg, and Cape Town.