Fly 540 and FastJet set to end court cases for a negotiated settlement of claims


Information has reached from Nairobi, that the two combatants Fly 540 and FastJet seem to have dropped their mutual court action, which reflected widely different understandings and perceptions on the state of their erstwhile agreements of cooperation and sale of shares. Sources close to FastJet in fact spoke of a statement issued by them today – though not seen in person – that the apparent agreement to drop legal action was aimed to accomplish a: ‘mutually beneficial and constructive solution’.

After weeks of exchanging harsh words and leaving the FastJet team, which was supposed to have done due diligence prior to entering into agreements with Fly 540 in a precarious situation, when the deal blew up in their principals’ faces, apparently cooler heads prevailed, or the financial circumstances dictated as some other source from the UK suggested, that a negotiated settlement should be reached.

Knowing both sides though, nothing is done until the proverbial Fat Lady sings in this case and all hymn sheets read the same script and melodies, and this situation will hence be monitored until a conclusion, either way, has been reached.

FastJet was desperate to enter the Kenyan market but owing to the claims laid at their door steps by the Fly 540 CEO Don Smith some weeks ago, failed to make headway, prompting them to even start discussions with other potential partners, namely Jetlink of Nairobi / Kenya. Those talks too showed no immediate signs of getting FastJet into the Kenyan skies on the trot, perhaps making the company realize that either they seek amends with Fly 540’s Don Smith or else see their dreams for Kenya evaporate.

Only two weeks ago did news break that FastJet had to suspend two routes in Tanzania not long after launching them with great fanfare, a further sign that their local expatriate management team has still to come to terms with seasonalities and the peculiarities of Tanzania’s domestic aviation market. There is intense speculation among aviation observers if or when, one or more of them, may have to pay the price for such misfortunes and be asked to leave, more so as one of their expatriates faces a case in a Dar es Salaam court over the alleged use of abusive language towards a local Tanzanian employee.

Watch this space for breaking and regular news from East Africa’s vibrant aviation scene.

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