FASTJET TO SET UP OWN KENYA OPERATION AS FLY 540 SHARES ARE SOLD
(Posted 25th June 2014)
In breaking news it was just confirmed that Fastjet PLC has disposed of its Fly540 shares in Kenya and announced their intent to set up their own branded airline with an operational base in Nairobi.
From comments obtained through sources close to the airline it became clear over the past months and weeks that Fastjet was no longer ready to tolerate what one source called ‘that thorn in their side’, which effectively prevented the airline to get into the skies over Kenya and begin truly regional operations.
It was confirmed earlier today that Fastjet had sold their shares in Fly540 Kenya to Don Smith who now once again holds the vast majority of Fly540 Kenya’s stock, leaving Fastjet to apply to the Kenya Civil Aviation Authority to set up their own airline in East Africa’s largest aviation market.
It was pointed out that the transaction includes mutual indemnities of any further future claims from one party against the other,
Fastjet remains the owner of Fly540 in Angola and Ghana where the two airlines are presently awaiting major restructuring from Fly 540’s former hybrid to a straight low cost model as in place in Tanzania.
Ed Winter, CEO of Fastjet and Interim Chairman of the Board, had this to say when asked to comment on the ending of the relationship with Fly540 Kenya: ‘Following a period of complex negotiations, we are delighted to have achieved a successful outcome for all parties. After a thorough and lengthy evaluation of Fly540 Kenya, we concluded that converting the business into the Fastjet low-cost model would not be economically viable.Disposing of our investment in Fly540 Kenya allows us to pursue our priority objective of creating Fastjet Kenya as a new entity which will operate to the same low-cost model, international standards of safety, reliability and punctuality as Fastjet Tanzania and utilize the same commercial strategy and distribution platforms. Further information on the Company’s plans to launch Fastjet Kenya will be announced in due course’.
This concludes an at times highly charged if not outright hostile relationship between the two parties, marked by legal disputes in Kenya and in the UK, all preventing Fastjet from their primary objective they had when coming to East Africa, to start operating on domestic and regional routes from Nairobi.
Fastjet today operates from Dar es Salaam to three domestic destinations in Tanzania, Mwanza, Kilimanjaro and Mbeya. In addition does the airline fly to Johannesburg and Lusaka and has only yesterday announced plans to fly to Harare twice a week from early August. Fastjet is in the process to setting up a Zambian subsidiary and has been trying to launch Fastjet in South Africa, the latter however still in the making.
Watch this space for breaking and regular aviation news from the entire region.
