Another one bites the dust!: Nationwide closes for business at 13h00 29April2008 - right before a long weekend!
From their web site: "Our cash-flow has become critical and as a result have decided to voluntarily cease all flight operations until further notice."
Nationwide announced yesterday that it would close for business (see here for more details). Nationwide staff were even calling radio stations (CapeTalk) to check if their reports were true, and if they still had a job! - so they were not told of the closure! Customers were still paying for tickets on the web site on 29April too!
This is hot on the heels of other companies that I have heard of: TicketConnection and LightEdge technologies.
So, times are tough - very tough.... (especially when you lose an engine!).... but what still bugs me, is that another company can glibly file for liquidation and ignore their debt - management can go and start up another company in the same line of business! IT companies are "famous" for this.
What happens to the employees? - they lose their jobs on the spot - no retrenchment packages even!
What happens to the owners? - they probably still drive around in their fancy vehicles, live in their mansions, and start up another similar company next door!
What happens to the employees? - they lose their jobs on the spot - no retrenchment packages even!
What happens to the owners? - they probably still drive around in their fancy vehicles, live in their mansions, and start up another similar company next door!
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According to Cipro database at http://www.cipro.co.za/ccc/EntDet.asp?T1=M1989000997&T2=NATIONWIDE%20AIRLINES&T3=1989/000997/07 if this is the correct company, Nationwide is a Private Company and therefore the directors of that company would be eligible for certain protection against their own private assets.
ReplyDeleteI am not sure what they are however this the the reason that people open up companies in the various ways they do, in order to protect themselves if something ends up going awry.