27th Aug 2014 10:28
LONDON (Alliance News) - Low-cost African airline fastjet PLC Wednesday said it has incorporated a company in Kenya and submitted its Air Service Licence application in the country, a move that comes two months after it sold its legacy Fly 540 operation in the country.
"This is an important step for fastjet," said Chief Executive Ed Winter in a statement, "We are excited at the prospect of extending the footprint of the fastjet operation through greater penetration of the African market with a Kenyan-based airline.
Fastjet was founded when Rubicon Diversified Investments bought Fly540, which flew in Kenya, Ghana and Angola, from Lohnro in a reverse takeover in 2012. FastJet then shrank and restructured the Fly540 operations in an attempt to make them profitable, while focusing on growing its own-brand operations out of Tanzania. It sold Fly 540 Kenya in late June to one of that unit's directors.
Fastjet said it is also applying for its Tanzanian operation to be able to operate from that country into Kenya.
The Air Service Licence is a significant step toward obtaining a full Air Operating Certificate, which will allow the start of operations domestically within and internationally from Kenya. The ASL application process requires all airlines to formally submit a detailed business plan including its proposed operation, network, aircraft specification, operational plan and commercial strategy.
Fastjet said that in order to comply with local airline ownership rules in Kenya, 51% of the equity of fastjet Kenya is owned by a Kenyan national, while fastjet holds the remaining 49% stake.
The African airline said that while it is monitoring the outbreak of Ebola, which is spreading across West Africa, there have been no reported cases in any of the fastjet destinations.
"The fastjet business has not been affected by the epidemic. fastjet extends its condolences to all those affected by Ebola," it said in a statement.
fastjet shares were trading 1.5% higher at 1.22 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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