Though the commercial aviation industry in most parts of the world is buckling under economic pressures - such as skyrocketing fuel prices - 1time Airline's saving grace is its other income stream, maintenance.
The airline derives most of its profit from its ability to service and maintain its own and competitors' craft. The other ace up its sleeve is its charter service.
In an interview on Summit TV conducted early last month, subsequently published on Business Day's website, 1time holdings CEO Glenn Orsmond said: "We struggled with higher fuel prices, but those were fully recouped and we are happy with the results. It's not an easy industry. We are fighting oil prices, exchange rates, unfair competition. It's not for sissies as we say.
"We have three businesses. The airline makes just less than half the profit and the maintenance company just less than half. The charter company contributes about 10% of the profit.
"We need to grow the charter and maintenance businesses. What is nice is that they earn all their income in dollars, so as the rand weakens, we will grow those businesses."
Gavin Harrison is CEO of 1time Charters, which has performed exceptionally well in the past financial year. It has managed to perform this well because 1time owns and operates its aircraft.
Most charter services sublease aircraft, adding to their costs. Though it is a niche market, Harrison says demand for the service continues to grow.
Much of the demand is in response to the growing links between SA and the rest of the African continent. SA, the company says, has become a sought-after destination for leisure and sport as well as for political reasons.
"The African market has opened up to SA and the business and tourism potential is huge. We are finding more and more large touring groups coming into the country," Harrison says.
1time Charters operates four aircraft: a DC9-15 that seats 85 passengers and three DC9-32s seating 110 passengers.
1time Charters also has access to the 1time Airline fleet of MD aircraft, which can carry 130-157 passengers. The company, which caters to groups of between 20 and 400 passengers, lists as its main clients large tourist groups, government and corporate travel, sports teams and school tours.
Until recently, aircraft were shared by the low-cost airline and the charter business. Orsmond says this was due mainly to the fast growth of the airline business.
"We are through that now, and this year the full charter fleet will be dedicated to the charter business."
With the 2010 soccer World Cup approaching fast, 1time Charters expects to get busy.
"Operators have approached us to book out our whole fleet for the duration of the World Cup, but we are not too keen on that idea. We believe we can do better on an ad hoc charter basis nearer the time."
Flight schedules currently vary dramatically, says Harrison.
"Some charters go away for a week to two weeks at a time, and on other days you fly eight legs a day."
