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I’ve been a long term critic of the remuneration of both the CEOs at fastjet. It is outrageous that Nico is receiving so much for gambling away shareholders money. He has completely failed in his leadership at fastjet, he doesn’t even have the decency to forgoe some of his remuneration.
All the talk of reducing costs when he arrived - and then he spends a fortune introducing not one, but two new fleets. And without regulatory approvals in place. Talk about failing to lead by example.
B.Schulz, I’m not sure how on one hand you can stick up for Nico claiming TIA and then in the very next sentence blame Ed for getting fastjet into this mess in the first place. Slightly hypocritical.
Yes, Africa is a challenging place. But the cost of a fleet replacement is astronomical. To then try and add a second fleet (and without any assurances that it can be deployed) is unnecessarily bad risk taking. Finally, Nico’s remuneration is outrageous. Yes, if he’d turned it around and he was keeping some of the profit I’m sure shareholders would be more than happy, but that’s just not the case.
Nico has failed in spectacular fashion.
He claimed he would reduce costs. This is how he sold himself to shareholders and also to the ex chairman to achieve the CEO position.
The figures speak for themselves.
Cost per ASK was 13.3 cents in H1 2018 vs 10.88 cents in H12017. A staggering INCREASE of 22%. No sign of a reduction in costs whatsoever.
And what was he thinking with the plan to introduce yet another fleet, what a rediculous idea.
A real shame the remuneration of the board is not available in the accounts, I sincerely hope that Nico has in no way been rewarded for his failings. He would have been rewarded handsomely if he had succeeded as part of his deal with the share options (30p)
Oh, there will be a response from Nico in the next couple of days. He has nowhere to hide, either fastjet’s bankrupt or he HAS to publish the interims. I hold my tongue here, I have zero respect for either Nico or Ed. I would love to know their remunerations. Maybe this is something that the LSE regulators should be looking into.....
It looks like that was a sell. Actually looking at the trades yesterday, it would appear that there were 440,000 shares sold in three trades, I would guess by the same seller.
The trades will show as a buy if the traded price is above the listed price at time of transaction. I base my assumption on the basis that the trades were at 7.1 and 7.2p, the lowest traded values in weeks. If they were buys, I’d expect them to be at a higher price. I could very well be wrong, this is just my strong suspicion.
That they have delayed publishing the Interims until the last possible week is a little disturbing. I hope I’m proved wrong, however I can only imagine that they will not be pleasant reading for shareholders.
I think if this airline is going to be around much longer, Nico needs to regain trust from shareholders. One simple step would be transparency such as publishing monthly traffic stats. I was very critical of Ed Winter when he stopped publishing these - he cited the reason as being that he didn’t want the competition knowing. I think that is rather dubious and more likely that he wanted to withhold poor traffic stats from investors as long as possible.
I guess, next week, we find out one way or another how the finances are holding up.
Still looking in from the sidelines.
Nico will have to reveal most of the issues within the next couple of weeks as the interim results are due out. He sold himself to fastjet by claiming he can reduce costs. It will be interesting to see how H1 2018 compares with H1 2016, giving him the benefit of last year being a transitional year from the old leadership, fleets etc.
Most importantly with cost control I would be comparing Cost per ASK between these two halfs. The figures will speak for themselves, along with RPK, ASK, etc.
I gathered all along that his remuneration will be based on performance unlike his predecessor. I hope this is still the case and that he has not neen receiving remuneration for any failure. I recollect, for him to receive anything significant, a target share price around 30p if memory serves correctly.
PJMInvest, I agree, the timeframe for introducing the three ATRs to service next month seems unrealistic now given that they have not been selling tickets. I hope there have been no costs associated with this fiasco, however I fail to see how this would be the case. What about crew training and retention etc? If crew training has not taken place then I would have expected Nico to have announced the delay to the shareholders. I sold up most of my holding a while back, held onto about 10 per cent of my shares so still look in here every so often to see what’s going on.
Looks like Solenta have the shareholders over a barrel on this. Hard to say if Nico will benefit from all this, however, it looks like he has destroyed fastjet as far as current shareholders are concerned with his disastrous decision to introduce a second new fleet when he was supposed to be reducing costs. Will be interesting to see what the cost has been per revenue kilometer if the results do come out tomorrow.
A “pittance”? What planet is this girl/guy wired to?
Fast jet is currently valued at over £80m and you call it a pittance? Seriously, you’ve been saying repeatedly for almost 4 years (since you lost your money) that fastjet is about to go under. Now you’ve stated that you believe it has 3-6 months left?!?
Well, yes, there’s a chance it will go under, but only a chance. A chance that you’ve been gleefully hoping for. You’ve been wrong EVERY single time so far about the demise of fastjet. Let’s all hope that Nuri123a is wrong yet again!
This would be the game changer that fastjet needs. Seems to slowly but surely getting closer to reality. I see that the Tanzanian government is one of three countries dragging their heels on this to protect their state owned airlines.
Has anyone heard how the meeting went last Friday in Togo? Had a quick search online but didn’t come up with anything.
Buxton1, very true, there was an update with limited financial information, and was bad regarding cash being locked up. There is no excuse for getting into this position, what has their strategy been regarding cash in Zimbabwe. How did they get themselves into this position? Was it just plain ignorance or was there some change in financial regulations in Zimbabwe since they started?
For me, what I’m most interested in financially is Cost Per ASK. Nico has staked his reputation at fastjet, to a great extent, on reducing this. His fleet change was at huge expense in order to reduce costs. I, for one, will be judging his performance mainly on his ability to have significantly reduced this.
“upcoming AGM” - last year it was on 30th June. I couldn’t find a date for this year. Looks like Nico is witholding financial information from shareholders as long as possible so I expected the AGM to have been delayed until after 2017 results are published. Do you have a date for this tear’s AGM?
Thanks G-BOAE, hopefully news on this soon and June deployment will go ahead as planned. There’s always a huge cost when introducing a new aircraft type, if Nico messes this up then I can see it being the end of fastjet. On the other hand, if it runs smoothly, then hopefully fastjet might be in a good position to be bought out for higher than the current price. Pretty much given up hoping for any returns on this share and now hoping for a takeover.
Disappointing that the results are being withheld so long, only a few more weeks to go and the truth will have to be out there.
Disturbing to hear that there are aircraft parked up and not entered into service yet, I seriously hope that fastjet are not paying for this, otherwise Nico will have some serious explaining to do to shareholders! Does anyone know what the financial arrangements are here and if crew have been trained up for these aircraft?
Polar opposite attitude to informing shareholders compared with the Ed Winter regime. Makes Ed look OTT with all his delusional RNSs claiming how rosy things were at fastjet compared with the reality. Would be slightly reassuring to hear something though - can’t see this being too investible to new shareholders if there has been no update for so long - I hope that it’s not going to be a last minute affair with the publication of results again!