When the Magufuli government came into office did airlines feel the pinch the hardest when a ‘travel ban‘ imposed on civil servants impacted on the load factors of local carriers like Fastjet and Precision Air.
Phonewind,I can only agree with you totally. Recruitment of managers at Fastjet seemed to be on " one of us" basis. Winter bought into the " white man in Africa" fallacy hence the disastrous corporate ties up with Lohnro etc.
I am also on the same wavelength with you on Magafuli whose ultra popularist approach is starting to have noticeable negative repercussions. The sugar debacle and the recent decision to unilaterally ban unrefined copper and gold exports being only a couple of strange political actions.I have commented previously on the preferred focus on Southern African routes but now.with the caveat that politics in South Africa seem to be deteriorating with the prospect of greater state capture by corrupt elements.
I am 65 so no antiagism intended; merely an observation that while age may be revered in Africa it is less appreciated in business. Regulatory bodies esp. Central Banks are imposing age limits on financial institutions and quoted companies.
Overall I think it is too early to make a call on FJET's renaissance although I am influenced by what Solenta may do and the volatile political/investment climate in RSA. On Nico, I agree he is good news.
I would not be so quick to write off Rashid Wally. I'm also pushing mid-70s and I'm by no means brain dead yet. I have more than 50 years in aviation (more than 30,000 hours as a pilot) and by now from experience and qualification, know a little about operations, safety management and data monitoring (though nothing about finance - although my wife is a financial consultant). When FJ started, I was working in Tanzania and as a leap of faith invested (being a big fan in every way of Eay Jet). I despaired when I met many of the new FJ managers in Tz and sold most of my shares because it was totally obvious they were incompetent freeloaders - the same as so many of the management staff I met when working for BCal in the 1970s. However, I'm finally feeling something positive about the future of FJ. I feel Nico is moving well away from its Tanzanian origins - a sound move as Magufuli is moving the economy backward toward the Nyerere days - and toward a more Pan-African model, based in SA. I plan to re-invest soon, once I see some action following the move away from Gatwick and see how things pan out with Solenta
Rashid Wally has a compelling CV but he is pushing mid 70s and.I would not have thought he is a long term appointment.
While applauding the involvement of Solenta as beneficial to ensuring a future for FJET, I would be wary on how the relationship plays out for investors. I do not think they would want to share too much of the cream with other parties and an opportunistic bid could entice the institutions and give them a London listing, which might be attractive in the light of developments in RSA.. I think standing on the sidelines may be the position to be.
In passing another huge loss forecast for SAA today of just under ZAR 7 billon.
Just VERY occasionally, you’ll spot some very positive vibes here from existing investors who’ve been around since just months after fastjet’s inauguration! So much so that some of them were even branded as “rampers” by a few individuals (one now banned for good) who didn’t really know the meaning of the word!
However, I’d join you in encouraging and welcoming any new investors, joining us hopefully with impeccable timing, just in time to see the share price to, once again, begin another trajectory in a northerly direction! [That ‘positive’ enough for you? :-) ]
"we look forward to pursuing fastjet's medium to long-term objective of becoming the first truly pan-African low-cost airline"
From the RNS I found Nico's' statement above reassuring. The long (and medium) term aim hasn't changed. Shame about the previous management or they could be much further down the road to achieving this by now, given the vast sums of money made available to them.
Looking forward to hearing about how the venture with Solenta will develop, I'm sure there is plenty going on behind the scenes.
The cash burn has been reduced substantially and there are now no longer the worries of how the next funding round will be achieved. Hopefully, funding will be a thing of the past but will have to wait and see.
As Shylock has stated, let's hope that the new management will dig deep and buy some shares!
I would think that once the move to Jburg is complete and the new operating costs are fully known they will set a blue print for the future running of the company and fully "divorce" itself from the past.
At least its fair to guess that the new BOD salaries will be more inline with the local economy than previously.
Being a listed company is not cheap in terms of the requirements and procedures and they are going to have had to put a chunk of money just to get the move completed in full.
The half year results will give a clearer picture.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.