1time prides itself on the performance of its maintenance division, Aeronexus Technical.
According to the company it is this maintenance subsidiary that sets it apart from its competitors. Aeronexus gives 1time the enviable advantage of servicing its own aircraft, thereby cutting costs and, at the same time, generating cash by providing the same service to other airlines. The revenue generated from third-party aircraft maintenance services increased to R26m for the year.
1time CEO Rodney James partly attributes this performance to "having an anchor client in the form of 1time airline".
"The volume 1time contributes provides the economies of scale that enables Aeronexus Technical to build capacity and support capabilities. These factors, in turn, allow the facility to attract third-party work by offering a quality service, a wide skills base and competitive pricing.
"We have a competitive advantage over overseas facilities by offering rand-based labour rates. We also believe that our open management style and entrepreneurial environment creates a culture that distinguishes us from our contemporaries," says Aeronexus Technical CEO Sven Petersen.
Aeronexus Technical's core maintenance business includes scheduled major and minor checks, as well as aircraft turnaround inspections. Turnaround inspections are those checks performed every time an aircraft departs.
"We performed the equivalent of 20 major overhauls in the 2007 financial year and do about 1 300 turnaround inspections a month," Petersen says.
The company, which employs 260 people, mainly targets McDonnell Douglas DC-9 and MD-80s, Boeing 737-200s and Boeing 727s as customers.
Its local competition is Safair and SAA Technical.
An "aggressive expansion plan" is on the cards for Aeronexus as it expects the demand for maintenance to grow. The programme is "full steam ahead", says Petersen, in spite of the current economic environment.
"With a good mix of rand and dollar-based customers, we believe we are suitably hedged against varying market forces," he says.
Expansion plans have been put in motion with the acquisition of additional hangar space and "integrating backwards into support capabilities", he says.
"We are, for instance, well on our way to establishing an engine-repair facility which will allow us to do most engine repairs locally instead of sending them overseas," Petersen says.
Aeronexus Corporate, which operates and manages a B727 VIP jet, counts among its clients the Djibouti government, for which it provides full flight operations and maintenance services from Johannesburg.
Other clients are corporate and private, mostly from overseas. "We even provided flight operations and the aircraft for Bill Clinton on his Africa tour in 2006," Petersen says.
This clientele, says Petersen, is "seasonal with an increase in summer but we perform regular flights for the Djibouti presidency". The trips last anything from a couple of days to a couple of weeks.
The group plans to expand Aeronexus Corporate's flight operation centre and add another aircraft to expand its operations.
Demand for the service is starting to grow and Aeronexus Corporate hopes to augment capacity to take full advantage of it.
