Fleet Changes Imminent in FastJet
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Source: Annual Report.
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Fastjet Stopping Funding for Tanzanian Operation
According to ATC News by Prof. Dr. Wolfgang H Thome, Fastjet are pulling the plug on funding for their Tanzanian operations because of unfair and obstructive actions by TCAA and the Tanzanian government.
For sure, fares will rise if they leave as the government tries to force out all competitors to the heavily subsidized state carrier (and I wonder how long before that goes back to its previous moribund state, mired in all the debts for all its new aircraft acquisitions?
Disturbing news are emerging from Fastjet’s head office that the airline apparently decided to halt funding for their Tanzanian franchise, the first in the group to take to the skies and for many years faithfully serving Tanzanian with low fares and reliable connections.
It appears, and notably has management not responded at this time to enquiries, that the airline’s top management simply decided that enough was enough, after aviation regulators in Dar es Salaam continued their wait until forever game they played over the airline’s new fleet of ATR72 aircraft.
As said before have the Tanzanian authorities heavily tilted the playing field in favour of their own national airline, with no hesitation over the impact on the industry and the country’s standing as an investment destination – in any case falling apart over the decision to prohibit arbitration and forcing the use of a local court system which is seen abroad as far from independent and allegedly often ready to implement political decisions from the bench.
It remains now to be seen what steps will follow next but with funding from abroad halted is it now anyone’s guess for how long the airline can continue to operate, given the hostile market environment unleashed upon them.
Operations in Zimbabwe and Mozambique however will continue as usual and Fastjet there is fully supported by Solenta, one of the airline’s major shareholders, based in South Africa.
There is growing speculation when Fastjet will announce the launch of operations in South Africa, where Solenta has ready to fly operator permits available, as they incidentally do in several other countries.
Said a regular aviation source in Dar es Salaam when contacted earlier in the afternoon: ‘The writing was on the wall. Our aviation officials delayed delayed and delayed them, which can be seen as obstruction, probably aiming to please their political masters. With Fastjet out of the way will fares no doubt rise and the Tanzanian traveling public will pay the price. Other private airlines should not jubilate, because they too may well be in the cross hairs of those people who want a monopoly again for Air Tanzania which will let them set fares at will. This is a sad day for Tanzanian aviation, for investors in Tanzania, should your story be confirmed‘.
It appears, and notably has management not responded at this time to enquiries, that the airline’s top management simply decided that enough was enough, after aviation regulators in Dar es Salaam continued their wait until forever game they played over the airline’s new fleet of ATR72 aircraft.
As said before have the Tanzanian authorities heavily tilted the playing field in favour of their own national airline, with no hesitation over the impact on the industry and the country’s standing as an investment destination – in any case falling apart over the decision to prohibit arbitration and forcing the use of a local court system which is seen abroad as far from independent and allegedly often ready to implement political decisions from the bench.
It remains now to be seen what steps will follow next but with funding from abroad halted is it now anyone’s guess for how long the airline can continue to operate, given the hostile market environment unleashed upon them.
Operations in Zimbabwe and Mozambique however will continue as usual and Fastjet there is fully supported by Solenta, one of the airline’s major shareholders, based in South Africa.
There is growing speculation when Fastjet will announce the launch of operations in South Africa, where Solenta has ready to fly operator permits available, as they incidentally do in several other countries.
Said a regular aviation source in Dar es Salaam when contacted earlier in the afternoon: ‘The writing was on the wall. Our aviation officials delayed delayed and delayed them, which can be seen as obstruction, probably aiming to please their political masters. With Fastjet out of the way will fares no doubt rise and the Tanzanian traveling public will pay the price. Other private airlines should not jubilate, because they too may well be in the cross hairs of those people who want a monopoly again for Air Tanzania which will let them set fares at will. This is a sad day for Tanzanian aviation, for investors in Tanzania, should your story be confirmed‘.
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Fastjet to Stop Funding to Tanzania
https://www.ippmedia.com/en/business...-plc-departure
It is being reported that Fastjet Tanzania is seeking funds to keep the airline going and local management is trying to buy the airline. With shares now having slumped to below £0.03 about all that’s left to buy is the airline name.
The only ones to have made any money from this are the overpaid board of directors
It is being reported that Fastjet Tanzania is seeking funds to keep the airline going and local management is trying to buy the airline. With shares now having slumped to below £0.03 about all that’s left to buy is the airline name.
The only ones to have made any money from this are the overpaid board of directors
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Fastjet Tanzania Slump Continues
Fastjet shares slumped to 1.81 pence today as the company’s RNS announcement highlights that they only have sufficient funding for a few more days operating:
Fastjet Funding Update
Basically, it is able to continue operating beyond the end of October due to some improvement in trading and cash generation. As at 24 October 2018, the Group had cash balances of US$ 3.4m, of which US$ 2.7m is restricted cash held inside Zimbabwe.
Whilst discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome. If the Company is unable to carry out an equity fundraise and/or reach an agreement with its key creditors in the coming days, the Group would be unable to continue trading as a going concern.
Further announcements will be made as appropriate.
It’s not looking good. I just feel sorry for all the employees who have no idea what the future holds for them
Fastjet Funding Update
Basically, it is able to continue operating beyond the end of October due to some improvement in trading and cash generation. As at 24 October 2018, the Group had cash balances of US$ 3.4m, of which US$ 2.7m is restricted cash held inside Zimbabwe.
Whilst discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome. If the Company is unable to carry out an equity fundraise and/or reach an agreement with its key creditors in the coming days, the Group would be unable to continue trading as a going concern.
Further announcements will be made as appropriate.
It’s not looking good. I just feel sorry for all the employees who have no idea what the future holds for them
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Local Management Buyout of Fastjet Tanzania
There is now an attempt by a group of Tanzanian businesses to buy out Fastjet PLC’s share in Fastjet Tanzania in order to turn the Tanzanian company into a franchise, retaining the right to use the airline’s brand name and benefitting from the association with Fastjet airlines in Southern Africa.
The buyout is anticipated following the election of Lawrence Mwasha to the position of Executive Chairman.He is a former ruling party senior cabinet minister and the airline hopes that his appointment will put relations with regulatory bodies on level keel again, though given President Magafuli’s treatment of many companies since his election, almost like a return to the old days of command economy, I wouldn’t bet on it
The buyout is anticipated following the election of Lawrence Mwasha to the position of Executive Chairman.He is a former ruling party senior cabinet minister and the airline hopes that his appointment will put relations with regulatory bodies on level keel again, though given President Magafuli’s treatment of many companies since his election, almost like a return to the old days of command economy, I wouldn’t bet on it
