Three Boeings operated by the defunct airline, Nationwide, have been sold to an unknown bidder for $1070 000, asset sales and services company the Alliance Group announced on Tuesday.

"Today's auction was the first time in South African history that Boeings were brought to the auction market," the company said in a statement.

The airline went into final liquidation in November, almost a year to the day after an engine fell off a Nationwide 737-200 during take-off for Johannesburg from Cape Town International Airport. The aircraft landed safely half-an-hour later.

The South African Civil Aviation Authority subsequently grounded the airline by suspending its approval of the airline's aircraft maintenance organisation and the certificates of airworthiness of Nationwide's fleet.

The, by then, cash-strapped airline tried to acquire an empowerment partner, but the deal fell through. Nothing came of offers made after its provisional liquidation in April either.

When a potential sale to the Durban-based Blackbird Aerospace failed at the last moment, liquidator Hannes Muller, of Tshwane, had no option but to sell off the airline's assets, said the Alliance Group, which managed the sale.

It said the sale was conducted on Tuesday morning, had no reserve and attracted wide scale interest from international buyers.

Pre-auction interest

"Most of the pre-auction interest came from the Middle East, Pakistan, India and Central African countries," said Alliance Group chief executive officer Rael Levitt.

He said this was because the aircraft were older than 15 years and could not be flown in western Europe or the United States.

"The secured creditors, First National Bank, will have their outstanding aviation bond settled in full, with a balance going to other creditors of the Nationwide liquidation.

"We sold the aircraft on behalf of the secured creditors and thus regard our mandate as having been successfully completed."

Levitt said the global market for older 737 Boeings was oversupplied because there had been several failed airlines globally. The global economic downturn was also not helping buyer demand.

"Under these circumstances we are happy with the price achieved."

The sale was held at the Southern Sun Hotel next to the OR Tambo International Airport, in Kempton Park.

Bidders included Comair, Safair and companies in Dubai, Pakistan and Kenya.

Last month trade union Solidarity said most of the failed airline's employees had found work, but a few less-skilled workers were still struggling.

Sapa

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