LONDON (Alliance News) - Fastjet PLC shares rose Wednesday morning after the company said it received an Air Service Permit from Zimbabwe authorities, a big step towards getting an air operating certificate in the country allowing the low-cost African airline to start a Zimbabwe service.
The airline, which is backed by easyJet PLC founder Stelios Haji-Ioannou, has been expanding out of its Tanzanian base, launching services to Uganda and South Africa and starting the approval process for services to Gambia. It made its first profit before interest and tax in December, as revenue and passenger yield soared due to strong demand over the holiday season and its fuel costs fell.
It said Wednesday that the Ministry of Transport and Infrastructural Development of the Government of Zimbabwe responsible for administering the Civil Aviation Authority of Zimbabwe, had awarded it an Air Service Permit, a "significant step" towards it obtaining an Air Operating Certificate.
"We recognised the real potential in Zimbabwe some time ago and as such have been working with the authorities both to build fastjet Zimbabwe and obtain permission to commence operations to various domestic and international destinations from the country," said Ed Winter, Fastjet's Chief Executive and interim Chairman.
"The granting of the ASP demonstrates the ever-increasing reputation that fastjet has built across the region and marks a significant step forward for our business," Winter added.
Fastjet shares were up 8.7% to 1.277 pence early Wednesday, one of the best performers in the AIM All-Share index.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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