Fastjet

Fastjet Plc

Type	Public
Industry	Airline
Headquarters	Gatwick Airport, United Kingdom
Key people	Clive Carver (Executive Chairman) Nico Bezuidenhout (CEO) Lisa Mitchell (CFO) Richard Bodin (COO)
Revenue	US$65.1 million (2015)
Operating income	US$ -37.9 million (2013/14)
Subsidiaries	Fastjet Tanzania Fastjet Zimbabwe
Website	fastjet.com

Fastjet Plc (LSE:FJET) is a British-based holding company for a group of low-cost carriers that are, or are expected to be, operating in Africa. The company's stated aim is to become the continent's first low-cost, pan-African airline, and the operation was initially created with the acquisition of Fly540, an airline operating in East Africa; flights in Fastjet's own name commenced in November 2012 in Tanzania.^[1] In order to satisfy local ownership and other requirements, the current strategy is to create locally incorporated airlines to operate services using a common branding, operational standards and sales platform.

The initial operation is now run as Fastjet Tanzania, and Fastjet Zimbabwe commenced flights in October 2015. Although Fastjet Zambia was at an advanced planning stage, in April 2016 it was announced that progress was being deferred until at least the final quarter of 2016.^[2]

History

Initial proposals

While originally thought to be competing with easyJet,^[3] it was later claimed by The Daily Telegraph that Fastjet was planned to be a transatlantic long-haul airline.^[4]

It was eventually revealed that Fastjet was a proposed low-cost African airline, and that an agreement had been signed with Rubicon Investments.^[5]

By June 2012 the plans had become clearer. To start the operations, Rubicon Diversified Investments Plc (later renamed Fastjet Plc) completed the acquisition of Lonrho's airline division for a transaction value of US$85.7m, satisfied by the issue of Rubicon ordinary shares to Lonrho. Key shareholders in the enlarged company would be Lonrho and Sir Stelios Haji-Ioannou, through his easyGroup Holdings Limited (“easyGroup”). The airline division acquired included the African regional airline Fly 540, operating in Kenya, Sudan, Tanzania and Uganda, which would form the platform for the development of a low cost carrier for Africa, branded ‘Fastjet’ under the terms of the easyGroup brand licence agreement.

Commencement of operations

The airline chose Dar es Salaam, Tanzania, as its first operating base in Africa, with flights from Julius Nyerere International Airport commencing on 29 November 2012. Initially flights operated successfully between Dar es Salaam and Kilimanjaro, and between Dar es Salaam and Mwanza. Further routes were to be added quickly, both domestically and to other East African destinations,^[6] and FastJet said it would move its operation office from Tanzania to Kenya, once it has approval to operate in Kenya.^[7] Once established in East Africa, FastJet also had plans to launch in Ghana and Angola, other Fly540 areas of operation, but all these expansion plans appear to have become embroiled in a public dispute between Fastjet and the original Fly540 management regarding outstanding debts and validity of operating licences.^[8] In May 2014 Fly540 Ghana and Fly540 Angola were both shut down as they were incompatible with the Fastjet low cost model.^[9][10]

Expansion of services

As well as expanding services from the base in Tanzania, in October 2015 the company obtained an Air Operator's Certificate (AOC) for Zimbabwe,^[11] and announced its plans to launch fastjet Zimbabwe. The initial flights between its base at Harare International Airport to Victoria Falls commenced on 28 October 2015,^[12] and flights to Johannesburg commenced from 1 February 2016.^[13]

Restructuring

With troubled operations and continued losses, majority shareholder Stelios Haji-Ioannou through his holding in EasyGroup successfully ousted two senior executives from the airline. The two being CEO Ed Winters and general counsel Krista Bates.^[14] Ed Winters was replaced by Nico Bezuidenhout who left rival low cost airline MangoSA and assumed office on 1 August 2016.^[15] The CEO promised to revive the ailing airline by restructuring its fleet and moving the headquarters to Africa.

With many of the A319 leases due by September 2016, Nico Bezuidenhout recommended that the airline switch to using Embraer E190s by the start of October 2016. Bezuidenhout also declared in September 2016 that the headquarters will be moving from London Gatwick Airport to Johannesburg.^[16]

Corporate affairs

Ownership

Fastjet (FJET:LSE) is traded on the London Stock Exchange Alternative Investment Market (AIM). After their initial involvement, Lonrho Plc disposed of their shares in Fastjet by 14 November 2013.^[17] In April 2014 Fastjet completed a successful $25 million Open Offer.^[18] EasyGroup retains a major stake in the company, holding over 10% of shares.

Current disclosable interests (of 3% or more) in ordinary shares (as at December 2015)^[19] were:

Business trends

Fastjet Group results are shown below (as at year ending 31 December). Fastjet began trading under its own name on 29 November 2012, and financial results for 2011 are not relevant as the Fly540 business was not acquired until 29 June 2012; financial results below for 2012 for Fastjet were for the 18-month period ended 31 December 2012. The company and group report in US Dollars.

Because Fastjet ran operations in various countries as Fly540, for comparative purposes the table below also shows separate operational figures for the original businesses, and for the Fastjet activities (in Tanzania and Zimbabwe).

Head office

Fastjet Plc has its registered office and head office at Suite 2C in First Point on the grounds of London Gatwick Airport in Crawley, England.^[24]

References

External links

• Official website (Mobile)