Fastjet shares have already dropped by 55% in 2016 and now the company is embroiled in another disagreement with Stelios Haji-Ioannou.
Stelios Haji-Ioannou, owner of easyGroup Holdings Ltd, said in a letter to the board of Fastjet Plc (FJET.L) that the African budget airline was in breach of two clauses of a license agreement.
Haji-Ioannou, who has been vocal in his opposition of Fastjet's management, said the carrier's Chairman Colin Child had caused the company to be in material breach of the license agreement with easyGroup, which owns the Fastjet brand.
Haji-Ioannou said Fastjet was in breach of two clauses of the agreement, and that it had failed to inform easyGroup about Fastjet's new "accountable manager" after the exit of former Chief Executive Ed Winter.
Fastjet declined to comment on the matter. It had said last week that it was taking legal advice on another letter from Haji-Ioannou
Haji-Ioannou, who owns a 12.6 percent stake in Fastjet through easyGroup, said in that letter that the carrier could go insolvent.
Fastjet may survive, but I don't believe that it will be in its present form if it does.The company is saying nothing to dispel the fears of investors and seems very lacking in transparency. I think there may be a place for a company with the Easyjet business model in the East African market, but now may not be the time and the overspending by management doesn't help