fastjet to restructure African approach
Travel Business
fastjet has made the announcement of restructuring two of its Fly540 business ventures in order to increase shareholder value.
Given that the Fly 540 businesses operate on the traditional airline
model instead of the fastjet low cost one, the company has been registering loss in this sector.
This translates into a restructuring of the Ghana and Angola, with fastjet reaching the conclusion that despite the long-term potential for this route, the airline can no longer operate them under the current conditions, stating their intention of focusing more on the east and southern African portfolio and strategy.
A major part of the restructuring process is represented by the selling of the two group-owned ATR aircrafts which have been traveling to Angola and Ghana.
If a leased aircraft is still operating in Ghana, the Angolan operation has been temporarily suspended. The company will announce further details on the restructuring of these two 540 businesses.
“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.” - Fastjet interim chairman Ed Winter
Given that the Fly 540 businesses operate on the traditional airline
model instead of the fastjet low cost one, the company has been registering loss in this sector.This translates into a restructuring of the Ghana and Angola, with fastjet reaching the conclusion that despite the long-term potential for this route, the airline can no longer operate them under the current conditions, stating their intention of focusing more on the east and southern African portfolio and strategy.
A major part of the restructuring process is represented by the selling of the two group-owned ATR aircrafts which have been traveling to Angola and Ghana.
If a leased aircraft is still operating in Ghana, the Angolan operation has been temporarily suspended. The company will announce further details on the restructuring of these two 540 businesses.
“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.” - Fastjet interim chairman Ed Winter
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