Restructuring of Fly 540 Angola and Ghana

RNS Number : 7144F

Fastjet PLC

29 April 2014

 



fastjet plc

("fastjet" or the "Company")

29 April 2014

Restructuring of Fly 540 Angola and Ghana

fastjet, Africa's low cost airline, today confirms that as previously announced, two of its loss-making Fly540 businesses are being restructured with the objective of increasing shareholder value.  The Fly 540 businesses operate on a traditional airline model and not the fastjet low cost model.

After a detailed evaluation of the potential of Fly540 in both Ghana and Angola, fastjet has concluded that, although these countries present very significant long-term opportunities for the fastjet low cost model, in the short term fastjet intends to fully focus on the considerable potential of opportunities in East and Southern Africa.  As a key part of the restructuring, two group-owned ATR aircraft previously operating in Ghana and Angola have been taken out of service and are currently in the process of being sold.  While a leased aircraft continues to operate in Ghana, the Angolan operation has been temporarily suspended, pending the return to service of two leased aircraft on completion of required maintenance.  Further details on the restructuring of both 540 operations will be announced in due course.

Fastjet interim chairman and CEO, Ed Winter, said: "Management has been carefully considering how best to restructure the Fly540 business which we inherited and this is a highly significant and very positive development in that process.

"We are currently focused on expanding the low cost fastjet network in East and Southern Africa by establishing bases in Zambia, Kenya and South Africa and these plans are progressing well.  However, our overall vision is to create a pan-African low-cost network and, as such, launching the low cost fastjet model in both Angola and Ghana remains firmly part of the Company's long-term plans."

For further information, please contact:

fastjet Plc                                                                   Tel: [phone]

Ed Winter

Angus Saunders

W.H. Ireland Ltd.                                                        Tel: [phone]

James Joyce

Nick Field

UK media - Citigate Dewe Rogerson                         Tel: [phone]

Toby Moore

Eleni Menikou

South African media - Tribeca Public Relations        Tel: [phone]

Cian Mac Eochaidh

Kelly Webster

About fastjet plc

fastjet plc is the holding company of the low-cost airline fastjet which commenced flight operations in Tanzania in November 2012.  The airline operates a fleet of distinctively branded Airbus A319s and since its launch has grown to encompass the key domestic routes within Tanzania and a rapidly increasing number of international destinations.  By adhering to international standards of safety, quality, security and reliability, fastjet has brought a new flying experience to the African market at unprecedented low prices.

fastjet is implementing the low-cost carrier model across Africa and its long-term strategy is to become the continent's first low-cost, pan-African airline.  fastjet plc is also the holding company of airline Fly540, which operates in Kenya, Ghana and Angola.

By offering one way fares from as low as $20, fastjet has stimulated a new customer base; the results of a customer survey showed that 38% of fastjet passengers had never flown before.  This democratisation of air travel is expected to gather momentum across the final continent to experience the low-cost airline revolution.

fastjet is committed to communicating effectively with its existing and potential customers and has, to date, won a number of marketing awards.  With over 140,000 social media followers, it occupies a unique position in African aviation.

fastjet plc is quoted on the London Stock Exchange's AIM market.

For more information see www.fastjet.com 

 

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