#Fastjet faces another cash crunch

A WEEK AFTER CRUCIAL EXTRAORDINARY GENERAL MEETING IS IT DO OR DIE FOR FASTJET – AGAIN

(Posted 14th December 2018)

Many eyes will be on Fastjet today to find out if the company was able over the past week to resolve pending issues with lessor GECAS vis a vis a lease for two Embraer E190 aircraft, presently flying for the airline’s Tanzanian offspring.
While no specifics could be obtained was the resolution of this apparent dispute key to unlocking hitherto conditional funding offers, much needed to keep the airline in business.
While in Tanzania a buyout of sorts has taken place – no formal announcement on a franchise agreement has been made as yet – are the other two operational units of the self professed pan African LCC, Zimbabwe and Mozambique, nevertheless dependent on resolving the pending issues.
It was also the Tanzanian operation which got hit by mischief when first three ATR72 aircraft were kept out of the skies over – what aviation observers from Dar es Salaam called ‘silly inventions by the local regulators‘ – besides then finding that the airline’s bread and butter route from Dar to Mwanza suddenly saw Air Tanzania fly their B787 Dreamliner in the absence of that aircraft being gainfully employed on long haul flights, none of which has yet materialised however.
Millions of US Dollars are still locked in Zimbabwe from ticket sales, unable to be repatriated due to lack of foreign exchange, and while the Zimbabwe government has made a firm commitment to set aside funds to begin releasing such outstandings to the respective airline’s home locations, this has yet to take off.
Watch this space therefore for updates later today, if Fastjet PLC has turned the corner, something their supporters will no doubt wish to see happen.

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