Tag Archives: Fastjet

Is Fastjet facing reorganization?

Fastjet (Johannesburg) warned on Friday, December 7, it is facing a financial crisis and could be facing administration (bankruptcy) and a reorganization if its cash flow does not improve. The airline warned it is down to just enough capital to fly for another seven days according to the Standard.

Fastjet began flight operations in Tanzania in November 2012, flying passengers from Dar es Salaam to just two domestic destinations – Kilimanjaro and Mwanza.

Since then, Fastjet’s route network now includes Tanzanian domestic routes from its Dar es Salaam base to Kilimanjaro, Mbeya, and Mwanza with international routes to Tanzania from Lusaka in Zambia and Harare in Zimbabwe.

Fastjet began branded domestic flights in Mozambique (operated by Solenta Aviation Mozambique) between Maputo and Beira, Nampula and Tete on November 3, 2017 and celebrated its second year of operations in Zimbabwe in 2017.

The carrier operates between Harare and Bulawayo, Harare and Victoria Falls, from both Harare and Victoria Falls to Johannesburg in South Africa. The airline has flown over 3.5 million passengers with an impressive aggregate on-time performance, establishing itself as a punctual, reliable, and affordable value airline.

Originally operating Airbus A319 aircraft, the airline now operates two Embraer 190 and three Embraer ERJ 145 aircraft.

Route Map:

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LAM and fastjet sign memorandum of understanding to explore wide-ranging commercial cooperation

LAM-Linhas Aereas de Mocambique Embraer ERJ 190-100 IGW C9-EMA (msn 19000301) JNB (Michael Stappen). Image: 906763.

LAM and fastjet on March 20 entered into a Memorandum of Understanding (MOU) to explore long-term commercial cooperation. The Memorandum was signed in LAM headquarter in Maputo. The intent of the memorandum includes wide-ranging areas of cooperation expected to significantly enhance commercial aviation in the country.

The memorandum covers code-share and interline agreements between the two carriers, optimized network synergies to accommodate same as well as cooperation on other commercial systems, cargo, engineering and maintenance. LAM chief executive Mr. Pinto commented that the “areas of cooperation will not only further strengthen Mozambique’s flag carrier as a regional air-services provider but contribute significantly to initiatives that promote tourism, economic development and trade.”

“This is an exciting and industry-leading public-private partnership initiative,” adds Mr. Pinto. “It not only supports Mozambique’s greater economic growth objectives in terms of the efficient and affordable movement of people and goods, but also the notion of a longer-term Whole of State Aviation strategy.” Mozambique is a signatory to the Yamoussoukro Decision and one of the early nation-adopters on the Continent.

“The approach to commercial cooperation is the first of its kind on the African continent,” says Fastjet Chief Executive Nico Bezuidenhout. “There is significant opportunity in stimulating not only commercial aviation but also up and downstream economic growth through key cooperative initiatives. Fastjet is committed to exploring and leveraging the agreement to the best-benefit of both companies and, ultimately the people of Mozambique.” The African Development Bank recently reported on a high medium-term growth forecast for Mozambique. “This memorandum of understanding lays the foundation for full economic leverage of a very bright future and fulfilment of the Government of Mozambique’s Whole of State aviation objectives.”

Fastjet CEO Nico Bezuidenhout and LAM CEO Antonio Pinto seal the Memorandum of Understanding deal.

The CEOs of fastjet and LAM airline finalise the paperwork for the Memorandum of Understanding agreement.

Top Copyright Photo: LAM-Linhas Aereas de Mocambique Embraer ERJ 190-100 IGW C9-EMA (msn 19000301) JNB (Michael Stappen). Image: 906763.

LAM aircraft slide show:

Fastjet aircraft slide show:

Bottom Copyright Photo: Fastjet.com Airbus A319-112 5H-FJG (msn 2891) EGBP (Antony J. Best). Image: 936095.

Fastjet.com Airbus A319-112 5H-FJG (msn 2891) EGBP (Antony J. Best). Image: 936095.

 

Fastjet’s first half loss widens to $30.5 million

Fastjet (Fastjet.com) (Dar es Salaam) reported today (September 29) its first half loss (through June 30) widened to $30.5 million (USD), including $13.9 million in losses in the associated Tanzanian operation. Fly540 Ghana and Angola had a $13.5 million adverse effect on the first half financial results. According to the carrier, “Fly540 Ghana and Fly540 Angola loss-making services remain suspended, with restructuring activity underway.”

Despite this loss, the low-fare airline has been expanding. Flights from Dar es Salaam, Tanzania to Lusaka, Zambia were launched in February 2014, from Dar es Salaam to Harare, Zimbabwe in August 2014 and from Dar es Salaam to Entebbe, Uganda on September 16, 2014.

The airline is filling a void left by the closure of Air Uganda.

Read the full financial report: CLICK HERE

Copyright Photo: Paul Denton/AirlinersGallery.com. Airbus A319-112 5H-FJC (msn 1145) taxies at Johannesburg (all others by Fastjet).

Fastjet: AG Slide Show

Fastjet crew

Expanding Route Map:

Fastjet 9.2014 Route Map

Fastjet launches its first international route to Johannesburg

Fastjet A319-100 (12)(Ldg)(Fastjet)(LR)

Fastjet (Dar es Salaam) on October 18 launched its first international route to Johannesburg. The new route will be operated three days a week initially.

Copyright Photo: Fastjet.

Updated Route Map:

Fastjet 10:2013 Route Map

Fastjet receives international authority from Tanzania, will create a new airline in Nigeria and shelves plans for a South African airline

Fastjet (Fastjet.com) (Dar es Salaam) has been granted permission to launch international flights from Tanzania to South Africa, Zambia and Rwanda marking a major step towards establishing the first-ever pan-African low-cost network. 

These route approvals have been granted by the relevant governments under the Bilateral Air Services Agreements (BASAs) between Tanzania and the other countries.

Fastjet has also signed a Memorandum of Understanding (MOU) with Nigeria’s Red 1 Airways Ltd to create a low-cost airline operating within Nigeria and to destinations across Africa.

The Fastjet Board has taken the decision to put the launch of Fastjet-branded domestic routes in South Africa temporarily on hold so that it can direct all its efforts and resources to starting its international services as soon as possible.

Copyright Photo: Duncan Kirk/AirlinersGallery.com. Airbus A319-112 5H-FJC (msn 1145) poses for the camera at Lusaka.

Fastjet to enter the South African market via Federal Airlines, drops its fight with Don Smith of Five Forty Aviation

Fastjet (Fastjet.com) (Dar es Salaam), Africa’s low-cost airline, has announced the signing of a Memorandum of Understanding (MOU) with local South African investment company Blockbuster, with the objective of Fastjet operating services in South Africa by the end of May 2013.

Blockbuster is associated with a number of high profile South Africans including,  Mr Edward Zuma and Mr Yusuf Kajee. It is anticipated that the new entity will be 75% owned by Blockbuster, in compliance with South African law, and 25% owned by Fastjet.  Tickets could go on sale within a few weeks and Fastjet is targeting May 31 to launch the initial Johannesburg to Cape Town route.

A commercial arrangement has been struck between Blockbuster and local operator Federal Airlines, a company with a 20 year history in South Africa, which will allow Fastjet to leverage Federal Airlines’ existing licensing infrastructure and deliver its low-cost airline model to the South African public.

In recent months, Fastjet has been in discussions with a number of South Africa-based entities to support its market entry strategy, including negotiations regarding a potential purchase of liquidated airline 1time.  In the opinion of the Directors, the value of the 1time has diminished over time.As there is still no indication that 1time creditors will accept the Fastjet offer, the Company has therefore chosen to invest in the Blockbuster/Federal Airlines venture to pursue its entry into an important African market and a country well-suited to Fastjet’s low-cost operating model

Fastjet is also pleased to announce that it has raised additional working capital to assist with the South Africa launch though a successful placing with an institutional investor who is committed to low cost air travel in Africa.

The Company has received legally binding commitments to raise £2,000,000 by way of the issue of 160 million new ordinary shares (the “Placing Shares”) at a price of 1.25 pence per share (the “Placing Price”). These shares will rank pari passu in all respects with existing ordinary shares of fastjet.   Following completion of the Placing the Company will announce the issue of the Placing Shares and the date of their admission to AIM, expected by 1 May 2013.  The Placing Shares carry one attaching warrant for every two allocated Placing Shares subscribed, with each warrant entitling the holder to subscribe for one ordinary share in the Company at the Placing Price with an exercise period of one month.

In South Africa, the airline intends to initially operate flights along the Johannesburg – Cape Town route twice a day, seven days a week in the prime business travel morning and afternoon slots.  Flights to other key destinations will be launched once the Cape Town route is established.”

Earlier this week, Fastjet announced the signing of a MOU with Don Smith, CEO of Five Forty Aviation Limited which trades in Kenya as Fly 540 to resolve issues that have concerned the media in particular. The signing of this MOU provides a positive platform for Fastjet to strengthen its East African hub.

The MOU includes, among other provisions, an agreement by both parties to stop legal proceedings in order that mutually beneficial and constructive resolutions are discussed and implemented.

Fastjet plc is the holding company for African airline Fly540, which operates in Tanzania, Kenya, Ghana and Angola. Flights under the Fastjet brand commenced in Tanzania in November 2012. The airline has introduced Airbus A319s into its fleet and by adhering to international standards of safety, quality, security and reliability, Fastjet has brought a new flying experience to the African market at unprecedented low prices . Fastjet is implementing the low-cost model across Africa and its long-term strategy is to become the continent’s first low-cost, pan-African airline.

Copyright Photo: Duncan Kirk. Airbus A319-112 5H-FJC (msn 1145) of Fastjet is pictured parked at Lusaka.

Fastjet South Africa Coming Soon Ad

 

Fastjet and Five Forty Aviation continue their public dispute over ownership and the use of the Fly540 brand

Fastjet (Dar es Salaam) and Five Forty Aviation (Fly540) (Nairobi) continue to trade statements in their on-going very public dispute. Yesterday (February 7) Fastjet issued this statement for their side of the dispute:

Fastjet logo

“In response to recent misleading press reports, David Lenigas, Chairman of Fastjet plc and Chairman of Five Forty Aviation Limited (Kenya) (“Fly540 Kenya”), confirms that there is no valid Brand Licence Agreements, Franchise Agreements or Management Agreements between Fly540 Kenya and Fastjet or any other Fly540 associated companies in Africa.

Statements made by Don Smith from Kenya, a director of Fly540 Kenya, suggesting he has the right to withdraw the brand are absolutely wrong and without foundation. The Board of Directors of Fly540 Kenya has never met to even consider this issue.

Fastjet wishes to advise the media and our passengers who fly with us throughout Africa in either a Fastjet plane, Fly540 plane or Fly540 Africa plane, that we are looking forward to expanding our low cost airline throughout the African Continent.”

Five Forty Aviation has responded back with their counter argument of the facts:

Fly540 logo

“Five Forty Aviation Limited (“Five Forty Aviation” or “the Company”) provides the following update to correct the factual inaccuracies contained in the statement issued by FastJet on February 7, 2013.

Rights to Fly540 brand

The Company asserts that licencing agreements exist between Five Forty Aviation Limited and FastJet’s Africa Operations: Fly 540 Angola – Sociedade de Aviação Civil SARL (“Fly540 Angola”), 540 Ghana Limited (“Fly540 Ghana”) and Fly540 (T) Limited (“Fly540 Tanzania”), and that these agreements are in writing and are evidenced in various confirmed financial statements. Lonrho Aviation (BVI) Ltd cannot produce written proof that it has held the sole and exclusive rights to the Fly540 brand, and its claim to have held these rights “for a number of years” is a complete falsehood.

FastJet’s Africa Operations, previously Lonrho Aviation (BVI) Ltd, have been licencing the Fly540 brand from Five Forty Aviation since 2008. FastJet’s Africa Operations now fly three Fly540 branded planes in Angola and two in Ghana. It flew two planes using the Fly540 brand in Tanzania until November 2012.

Control of Five Forty Aviation Limited

The latest returns from the Registrar of Companies in Nairobi, as supplied by Anjarwalla and Khanna, the lawyers acting on behalf of Fastjet, on January 30, 2013, show that the shareholders of Five Forty Aviation Limited comprise 530 Investments Ltd (the investment vehicle of Don E. Smith), owning 1,999 shares (representing 51% of the Company), and Lonrho Africa (holdings) Limited, owning 1,923 shares (representing 49% of the Company).

Fastjet’s statement is incorrect in claiming that it acquired Five Forty Aviation through its acquisition of Lonrho Aviation (BVI) Ltd. Interested parties are invited to read Fastjet’s listing document (available from Fastjet’s website), which clearly states that it was to acquire only a 99% economic interest in Five Forty Aviation. It was never to acquire control of Five Forty Aviation.

As all the conditions of the acquisition were not met, Fastjet did not gain a 99% economic interest in the Company. Five Forty Aviation remains majority owned by 530 Investments Ltd and maintains its independence from FastJet. Copies of all licence agreements and returns of the Registrar of Companies in Nairobi are available on request.”