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1 Yes, there is more FJET visibility in both Lusaka nd Dar 2 An apolgy: revenues are growing faster than CPI in TZ and I am afraid I got my country stats mixed up
Thanks Johnbri4. Such graphic observations can be of such interest to we UK-bound investors.
I have just been on the N3 to Pretoria and passed a massive billboard. In large letters it says : FASTJET 4X A DAY TO HARARE. With the upbeat optimism coming out of Zim this could become a busy route.
Actually the cost of the loan is nearer 8.7% and 10.7% given that that would seem to have to settle interset on a quarterly basis.
The share price suggests the market is not that impressed by the RNS 1 Despite all the gloss on rising load factors in TZ revenues up 7% merely seem to have met inflation 2 The non-dollars in Zimbabwe 3 "tradingbroadly in line in line" = "just short of expectations" 4 ATR costs 5 The cost of the loan: 30 day LIBOR has been rising sharply and is now over 1% for the first time in 7 years and is now just short of 2% and contiuing its climb: the benchmark interest rates ar enow 8.33% and 10.33% respectively with a further rise likely. Various structural changes in the EuroDollar market could under-pin further increases. I think Nico and his team have done a commendable job and it is unfortunate that liqudity and funding costs are being compromised by exogenous factors. .
The problem is that there are no USD funds in Zimbabwe; the $5 million is merely a ledger entry on Fastjet's bank account. The severe shortage of US Dollars in what is a 90% dollar based economy means that there is nowhere near enough USD currency to meet myriad demand and banks cannot fund their NOSTRO accounts outside Zimbabwe nor release USD for internal demand as there is very little to release. Zimbabwe cannot print USD bills. There are 4 or 5 piroty areas such as the military, educaton ( most children of the elite are educated abroad), medicines,fuel and imported staple foodstuffs and certainly FJET would not qualify for any of these categories. The solution would be a political settlement with major donor countries and the resumption of aid and supranational funding by the IMF, EIB etc. But this will no doubt have to wait the outcome of the election and some agreement that it was "free and fair" no matter by how much observers stretch that definition.Any decision by CAAZ is irrelevant in these circumstances..Until some sort of political solution is in sight FJET will have to wait for a currency allocation in what is along queue or hope that transport gets redesignated as a priority industry.
Pj , lets do that , IMO I reckon three months
Would be interesting doing the same comparison for 2 weeks time and also for a months time to see how that compares.
Of the three , today the winner was ATCL �� https://twitter.com/saidiabdal/status/981890022822547456?s=21
PJ , Our board could argue with the funds available in Zimbabwe they are ready to rock and roll with expansion if given the green light by CAAZ, agree it�s not ideal not being able to use the funds for liquidity, I would be more concerned were it not for the fact there is a new Zimbabwe regime banging on foreign investors doors claiming Zimbabwe is open for business, I can not imagine Nico would commit to three ATR,s if he has no use for them in Tanzania, our TZ market is getting tougher by the day and with the introduction soon of ATCL Boeing 787 I would hope this will generate domestic traffic and connections which will obviously be fed onto ATCL but hopefully enough for all three TZ carriers to prosper, for now it�s certainly Zimbabwe that is the shining star.
Broker Forecast - Liberum Capital issues a broker note on Fastjet PLC BFN Liberum Capital today reaffirms its buy investment rating on Fastjet PLC (LON:FJET) and cut its price target to 22p (from 25p). Story provided by StockMarketWire.com Broker Forecasts data provided by www.sharesmagazine.co
1. It would not be prudent to invest more money in route expansion in Zimbabwe until we are sure we can repatriate funds for overall liquidity. 2. I am worried that Regulators/Countries will deliberately hamper, delay, refuse routes etc to deliberately stymie our expansion plans in the knowledge that the longer the pre start route costs go on before route revenue starts, the more we will be damaged to the benefit of State Airlines.
Hmm....and in the price. Still a long road ahead.
I would prefer aquisition in Fed Air rather than just a marketing arrangement
The only positive I am getting is we are not paying for 3ATRs just yet, the engine event has cost a lot less than I imagined, I�m wary of the increased load factor in TZ as this was achieved on a ONE E190 operation for a considerable time. With regards to the other points you raise I�ve not had time to digest, of concern is the six million cash which we can�t get our mits on just yet in Zimbabwe but I�m sure this will be resolved with new regime in place,overall, disappointing but heading in the right direction, no suprises.
fjc, I can't decide if this is broadly positive or not! I guess it does show confidence in the future with the commitment to the 3 ATR (even if the loan is quite expensive) roll on June! The other curious thing in the RNS was reference to shares (that FJET may acquire) in FedAir as part of the security for the loan. This caught my eye as I thought the deal was a marketing / brand licence agreement as in Mozambique! Talking of FedAir the other curious thing was the realisation of $250k cash from this arrangement - what does that mean???
Turbos delayed until June � 10 Mill cash of which six mill stuck in Zimbabwe �- Engine event cost us very dearly A319 �- Plus side cash positive expected 2018
http://allafrica.com/stories/201804030666.html https://www.youtube.com/watch?v=4Viye_mwLSc
http://anacgabon.org/is-this-a-new-dawn-for-africas-airlines.html
Last known information was the picture 22nd February 2018 http://www.piclizard.com/media/1720265527594347796_2100134092 Which showed them still at Toulouse
Do we know these remain at Toulouse ? http://www.airliners.net/photo/Fastjet/ATR-ATR-72-600-ATR-72-212A/4815711/L
Is this Solenra? I didn't think Solenta had any 737s. My understanding is that DHL in Zambia have leased the 737 from SAFAir. I think this adds to the difficulty of getting into Zambia
PJM, indeed, and as the originally stated 6 month window for their deployment has now passed let's hope something happens soon!!