29th Apr 2014 10:45
LONDON (Alliance News) - Low-cost African airline Fastjet PLC Tuesday said that it is restructuring two of its loss-making Fly540 businesses, so it can focus on new opportunities in east and southern Africa.
The Fly 540 businesses operate on a traditional airline model and not the Fastjet low cost model.
"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," said Interim Chairman and Chief Executive Officer Ed Winter in a statement.
Fastjet said that as 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.
It said that while a leased aircraft continues to operate in Ghana, it has temporarily suspended Angolan operations, as two leased aircraft are currently in maintenance.
The group said it will announce further details on the restructuring of both Fly540 operations in due course.
"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," Winter added.
Last week, Fastjet said it had signed a strategic partnership deal with online travel firm Expedia Group, which it hopes will boost flight booking to Africa.
Fastjet shares rose 14% to 2.06 pence Tuesday morning, making them one of the biggest gainers on London's AIM market.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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