LONDON (Alliance News) - Fastjet PLC Monday said it has signed an agreement to dispose of its interest in airline Fly540 Ghana Ltd, the loss-making investment it had acquired from Lonrho Aviation in 2012.
Fastjet has wound down the Fly540 operations in Ghana and Angola that were the airlines of its predecessor company as it has focused on becoming a low-cost airline based in Tanzania and expanding from there with routes to neighbouring countries such as South Africa and Zambia.
In 2014, Fly540 Ghana recorded a pretax loss of USD11.3 million. Operations in Ghana were suspended in May of that year.
On completion of the agreement, fastjet transferred the shares of Fly540 Ghana to DWG-G Co Ltd for a nominal consideration of USD1 in cash.
"The disposal of Fly540 Ghana is a great step forward in fastjet's restructuring plans for our legacy businesses. Whilst West Africa remains of interest to us as a low-cost market in the future, our current focus is on expanding our footprint in Eastern and Southern Africa. fastjet has retained the right to discuss the introduction of the fastjet brand in West Africa when it considers the economic conditions and infrastructural environment to be more favourable," Chief Executive Ed Winter said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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