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Velvet Sky Suspends Flights Due to Financial Trouble

Last week Velvet Sky reported having financial problems, which has led them to suspend a number of flights.  Flights at OR Tambo, King Shaka, and Cape Town International Airports were grounded last week and the airline says that will use this down time to review its balance sheets and come up with a short-term strategy to deal with their poor financial state of affairs.  This will also give them the time needed to resolve disputes the airline has with certain of their suppliers.
Last Friday, BP South Africa filed papers with the Pietermaritzburg High Court calling for the liquidation of Velvet Sky, based on the fact that the airline owes them approximately R29 million.  Last week hundreds of passengers were left stranded as the airline canceled a number of flights and many others were delayed.  Velvet Sky has assured passengers who have flights booked up until next Monday can get a refund or rebook their flight for a later date.

See the original Google News article for more details.

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