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The airline, 1Time, has filed for business rescue.
The airline's board says it requires business rescue because it is "financially distressed".
Business Day reports that the company has about 320 million rand in short-term debt and has been in negotiations with creditors since March.
The low-cost airline, which was in the news this week following a second engine failure on one of its planes, will continue with its scheduled services.
Earlier this year, another low-cost airline, Velvet Sky, went into liquidation after failing to convince a court that it was a candidate for business rescue.
