FASTJET CONTINUES TO CHARM INVESTORS FOR MORE MONEY
Reports confirmed by an aviation source in the UK speak of FastJet having secured additional loan funding worth over 24 million US Dollars from the US based Bergen Global Opportunity Fund, injecting more working capital into the company which is faced with potential liabilities as a result of law suits brought by erstwhile partner Fly540 to the tune of millions of US Dollars, should they lose their cases as Fly540 sources insist they will.
It is also understood that FastJet management is once again seeking meetings with the liquidators of South Africa’s grounded and in liquidation 1Time, for which’ acquisition a tentative deal was reached last year, to see if the moribund carrier can be revived and resume operations under the FastJet brand.
Claiming that South African airfares have sky rocketed since 1Time ceased operations, FastJet has suitably dramatized the scenario and is presenting itself as a savior for South Africa’ seemingly exploited passengers, inspite of other low cost carriers like KULULA continuing to serve this market segment effectively.
Another source based in Tanzania and close to FastJet has also passed information that apparently moves are underway to obtain traffic rights between Dar es Salaam and Johannesburg, clearly not paying any attention to Fly540’s demands to cease operations over financial disputes, following which Fly540 withdrew their goodwill and use of operating licenses given to FastJet.
Flights from Dar es Salaam to Nairobi and Entebbe, as FastJet executives have said would be coming soon, are until now not yet available, something apparently blamed on both regulators and competitor airlines working in cahoots to keep unwelcome competition off these routes, restricting FastJet to domestic flights within Tanzania only.
Many aviation observers in the region agree between themselves that FastJet ought to first resolve their legal cases with Fly540 to remove those clouds from their skies and clear any element of doubt about their longer term future in the region. As the saying goes, watch this space.