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Happy clapper read this .....
The company’s managing director is Paul Hurst who went to school at St Georges College in Harare and worked for AirZim and other companies before joining Solenta. His brother Mark Hurst is group managing director.
The operation manager is Sharon Gray who also lived in Zimbabwe before moving to South Africa.
Aviation sources say government authorities felt the agreement was a rip-off as it was too expensive for AirZim.
While Solenta was charging the national flag carrier exorbitant fees amounting to over US$200 000 per month, similar aircraft could be leased from elsewhere for as low as US$50 000.
“Solenta Aviation was paid over US$3 million during the subsistence of the contract and is currently owed US$1,1 million by AirZim,” an aviation source said.
“This shows how expensive the contract was.”
The termination of the contract and anticipated re-tendering for new wet leases today has caused serious clashes in government and Zanu PF circles.
Sources close to the deal said on Wednesday Kaukonde and Khaya Moyo had a heated meeting in Harare with Mpofu where the two accused the Transport minister of interfering with the Solenta contract because of political considerations.
Khaya Moyo and Kaukonde belong to the Mujuru faction.
According to AirZim, the decision to enter into an agreement with Solenta was made on the basis that it was more economical to do that than use the much bigger AirZim’s Boeing 737 and 767 which are costly to run.
Sources said Mpofu’s ministry was now investigating the Solenta deal.
“This is a factional fight with a business dimension in which senior Zanu PF officials are at each other’s throats over a deal which went sour,” said the aviation source.
“Kaukonde is involved in the deal on Solenta’s side and Mpofu terminated the contract which was issued under his predecessor, Nicholas Goche, a Mujuru loyalist.”
However, Mpofu told the Independent yesterday the lease had already expired and that its termination had nothing to do with who is currently running the ministry and AirZim. “The tender had expired and in any case it is not the minister who deals with the tendering processes,” Mpofu briefly said, before the line cut.
Think people need to be worried?
Just thinking that’s the most idiotic statement this week Fastjet tell you of imminent failure, if you were solenta would you keep ploughing money into a dead duck. Solenta have everything to gain if it does go bust. M&G have bailed out , course your theory is they don’t want to make a profit. I think you should start printing guarantees for everyone’s investment here These will trickle down then people could take a punt but don’t see why they should support the happy clappers
Absolutely nothing your saying is fact or of any substance ironic chairman of fastjet is ceo of consortium
It's obvious this will not go bust, Solenta own 60 percent of the company already and I don't see them offloading like m&g do you.
They buy-out fjet Zimbabwe in their position just like anyone of us in their financial position.
Don't be fooled buy other's here that are bringing doubt on the weak and gullible.
Remember that their in talks with an investor consortium and I wonder who's part of that lol.
Thus company is a multi award winning company and wouldn't be in Solenta's interest for it to go under, as it wouldn't sit well to be acquired that way in passengers eye's or investors eyes for the sake of a 5m mkcap. So let's be realistic here, cut the crap and the bullsh*t as Breakfree is here for his own benefit not yours, remember that when you press the sell button at a loss. No problem as I'm buying up a available stock anyway, I just hope you dyor.
Fastjet own FedAir which taxi tourists. Those planes are charted and leased. When lockdown hit they were all cancelled and most staff made redundant or serious pay cut. That’s the problem with this outfit they just don’t have a pot to pee in. I think they are just to close to solenta to care about us shareholders. ulterior Motives at play here now. It stinks. What I want to know is how the share price managed to rattle up recently. Even the happy clappers couldn’t do that and while M&G were selling as well that’s another stink !
May be a new approach could be leasing in aircraft and crew. Lease in extra during the high tourist season and a reduced amount of flights during the winter. However having worked in South Africa on several occasions, the tourist trade is always there it just varies by amount. With Solenta holding major shares, they will not want to see aircraft being leased from other parties.
No their no longer a big customer the last jet has gone they only now have the two Embraer aircraft which solenta have a charge on. I don’t know about you but it’s a poor doo when they can’t even be accurate when they are going bust.
Think we all forget as well this is South Africa and people don’t manage business the same as the western world. A lot of money can just vanish. Even the government is not offering any bailout money due to covid. I can’t understand what they plan to do if they get the deal through ?? Best parts would go to SOLENTA like the jet in April.
I also believe there's a good possibility that this will merge with flybe in the near future, strength in numbers ; P
Fastjet is claiming to go bust in june then july now august but somehow manages to find funds for another month.
More likely tactics by Fastjet to put pressure on governments to allow flying again and looking for some financial support to the aviation industry.
Fastjet is also a big customer to Solentas maintenance business worth millions annually who would want to loose a big customer like that.
Fastjet is worth alot more alive than dead to Solenta ie 33m plus.
If Solenta wanted to they could have pulled the plug on fastjet months ago but instead they are cutting them deals ie " Management remains in discussions with certain creditors and has identified additional discounts of between US$1.0
million and US$3.0 million (the “Additional Creditor Discounts)"
I am not convinced. There not jumping to a deal. What your saying is solenta should by rights support the deal because of its holding. But under the deal it takes assets and the best part of the business as part of a de investment. In other words solenta are fastjet biggest creditor. So being the biggest creditor it clears the debt to fastjet gets the meat on the bone and fundamentally not a lot left other than a debt free shell. If the deal doesn’t go through fastjet we likely fold and solenta with all its first charges get the lot. Alternatively fastjet go into further debt with someone else and solenta still have overall control and probably could not play ball in getting that further expensive funding. It’s a mess and stinks. Its all loaded in Solentas direction.
Solenta stake in fastjet last year was valued at 33 million sterling on stock market thats a big incentive for Solenta to support Fastjet and maintain its stock market listing.
The Tourism Business Council of South Africa (TBCSA) released a statement implying that resumption of flights by September is crucial for people in the inbound tourism industry to preserve their jobs, as during the period from September to March inbound tourism makes up 60% of its overall annual revenues.
That’s a good govt incentive to start flights! They cannot support their economy without tourism, that’s clear from the above.
Likeliness = lifeline ( fat finger on iPhone)
I personally do not think creditors will want Fjet to fold as all sectors worldwide are having financial crisis and the least creditors want us to loose customers permanently. Every business is trying hard to retain customers and build on their business in this testing time. Same situation for Fjet creditors, they will do everything it takes to retain customers and business to ensure Quick recovery. Fjet has two months cash resources but the going concern declaration is common practice and am fairly confident we should get back to negotiation with creditors and the consortium by end of July 2020. So am seeing a likeliness will be thrown at Fjet and we should be back to normality beginning August 2020. IMHO
I'm in agreement with Borson on this one. I have held this for a while now and this is certainly not bad news, more like transparency which is good. If some news about lockdowns easing comes and the disposal gets sorted then we have a shot. Im holding for a little while longer, 8 weeks can do a lot, 8 weeks ago we were in full lockdown, now we have lots of options and in EA short flights are essential for the wider economy (Having lived and worked in TZ). GLA
To be fair the end of August is a long time from now, the main issue is source of funding beyond as they weren't exactly raking it in before. Definitely a coin flip but short term its weighted toward the positive side....
Good post Tex.
This share remains high risk/high reward.
However at least we have +1 month to get some flights going.
Tourism looks to be a key factor to zimababwes economic recovery, starting to ease lockdown.
I think it is a clear and honest RNS and should be easy to make an investment decision on your greed / fear ratio. My glass is half full and believe the Govt will ease restrictions by end of July. If so, then the SP will rocket very quickly with a lot of people banking their initial investment on the way up. If no news by early Aug then I see a massive sell off of PIs trying to limit their losses.
I'm taking no notice of rampers, de-rampers, chartists, conspiracy theorists, evangelists etc.
Pits up to you to decide if it’s good or bad.
I think it is good. Previously we were going out of business at the end of July. Now we can survive till the end of August without raising additional funds.
What is key now is local communication of lockdown easing and flights starting.. this will allow flights to start again and income to be generated and also (most importantly) it will allow the disposal to start to be negotiated.
So in a nutshell 7 weeks to get things back on track.
Let’s hope for govt news on flights starting again! Once that notification comes then we will be in a strong position.
Remember, this share is currently priced to fail. Loads of upside if we have some luck.
So is this rns good or bad
Worth a punt in this with Solenta owning 60% of stock and also their biggest creditor no chance Solenta going to pull the plug on fastjet or big dilution.