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17.12.2018 - 19:58 UTC
Fastjet (FN, Dar-es-Salaam) has suspended all flight operations until the end of January after the Tanzanian Civil Aviation Authority (TCAA) ordered it to cease ticket sales and submit a suitable turnaround plan within 28 days.
In a statement, the TCAA said the low-fare airline did not possess any aircraft of its own and therefore did not comply with the terms of its Air Operator's Certificate (AOC). Fastjet Airlines Tanzania relinquished its two E190s to lessor GECAS last week as part of fastjet plc's exit from the low-fare airline. Since December 7, it has been wet-leasing a B737-500 from Africa Charter Airline (FSK, Johannesburg O.R. Tambo) to run domestic Tanzanian flights exclusively.
"The Directors of fastjet Tanzania are in discussions with the authorities regarding the continued operations of the airline," fastjet plc said in a statement while highlighting that fastjet Airlines Tanzania is a separate entity, independently owned and operated, from fastjet plc Group.
As previously reported, Tanzania's former Home Affairs minister, Lawrence Masha, raised his stake in Fastjet Tanzania from the previous 4% to 68% after he bought 47% of the company's shares owned by locals and 17% owned by fastjet plc. The remaining 32% is held by South African Hein Kaiser.
According to The Citizen, the TCAA has also called on service providers to submit claims to Fastjet Tanzania. The regulator said it itself was owed TZS1.4 billion Tanzanian shillings (USD606,000) for the provision of services, including security.
Break free, I agree that FJet has cut the cancer buy selling FJet TZ FOR $1 and dumping The buyer Mashable with the debts. However, FJet UK is still in very poor shape. Nico is culpable for buying the 3 ATRs before getting approval and the having a fire sale to get rid of them. Furthermore he has money trapped in Zimbabwe and can only get to it by trading/bartering with other companies and banks to convert it to $ At a huge discount. He need $ to pay the bills.
When FJet UK run out of cash Solenta will buy it for 1$ I believe. IMHO nut I will leave other to make up their own minds, I just blame myself for having wastes 30k on a dream that has turned into a nightmare.
I hope this helps!
Solenta Aviation Holdings Limited (SAHL) has taken control of fastjet plc after acquiring an additional 24.5% stake in the UK-listed African low-fare airline.
The move comes after fastjet entered into multiple transactions which increased its equity base by at least USD40.0 million following warnings over the past 4 weeks that its weak cash position threatened its viability.
A filing with the London Stock Exchange (LSE) on Friday, November 16, said the South Africa-based aviation holding had agreed to subscribe to 316.7 million fastjet shares for a total of USD4.1 million. Solenta’s stake in the company subsequently rose from 29.8% to 54.3% while its voting shares have risen from 29.8% to 60.2%.
fastjet plc also issued 1.9 billion shares valued at USD24.4 million to acquire four E145s from Solenta and to settle other fees and charges due to the firm.
fastjet plc also issued 898.4 million new ordinary shares to raise USD11.5 million. It will also hold an open offer with qualifying shareholders of up to 411,440,871 Open Offer Shares aimed at raising up to USD5.3 million.
As previously reported, fastjet plc will indeed exit its Fastjet Tanzania unit having entered into a conditional share sale agreement with local management in Tanzania, regarding the sale of its interest in Fastjet Tanzania's holding company, fastjet Air TZ (BVI). Following the sale, valued at USD1, the Tanzanian carrier will operate as a fastjet-branded carrier.
As a consequence of fastjet plc's decision to cease funding its Tanzanian operation in September, plans to induct three ATR72-600s have now been abandoned resulting in the company incurring an early termination liability. According to the LSE filing, along with other settlements, the firm will spend up to USD3.7 million to cover major creditor settlements associated with the decision to stop funding Fastjet Tanzania.
In terms of its Fastjet Zimbabwe operations, fastjet plc said it has also moved to exercise its existing option to acquire the 51% stake held by a local Zimbabwean holding and transfer the shares to a Zimbabwean company in consultation with Solenta. In addition, the decision to acquire the four E145s from Solenta will help generate lease savings of around USD220,000 per month in hard currency outflows for its Zimbabwean operations.
"By owning the existing leased assets (as opposed to fixed monthly lease cash outflows), along with utilising the Solenta infrastructure in Mozambique (e.g. no fixed cost), fastjet has flexibility to scale operations down materially in the event of aggressive new competitor market-entry," it said. "Similarly, the four Embraer 145s represent an effective increase in available aircraft capacity (previously three Embraer 145s used in active service and one as backup), which will support the additional route rights received by fastjet Zimbabwe allowing it to operate double-daily frequencies between Harare Int'l and Bulawayo (previous authori
Solenta seem to have a strategy for African airline ownership and have played their hand successfully pre and post FJet takeover. You can't blame them for stepping in to buy out FJet and they will make a success of it. It sad that we have had to take the pain for them to reap the gain.
I am thinking ....... Is it possible for UK nationals to invest in Solenta? Does anyone know the answer?
I supported FJet because I wanted Tanzania to succeeed as a country with a worthy airline, but the incompetence of the Tanzanian government has overwhelmed FJet and the benefits have been lost to the country.
I was thinking of holidaying there and would have spent money there but now I am thinking screw the,m I will spend it in Kenya. I am not bitter but so disappointed with the lack of vision in Tanzania.
Bye the way , buying three ATR aircraft without first getting the route licences was idiotic.
Z-FJE Scrapped 11/2017
Lsd From Icbc ---- It was leased therefore it was not owned by FJET THEREFORE NO CAPITAL LOST.
However it is always a shame to see an aircraft being scrapped even if the real owner will recover and resell engines, components, and parts.
Fjetcrazy, it is good to hear we are only paying retainers on the ATRs until we get the route licences, and that we haven't bought them outright. I believe FJET have said they will be operational In September so they must have trained crews ready and available and on the payroll?
Fjetcrazy, I was querying the logic of getting any aircraft before getting route licences and Kigoma licence was not not issued first time and may not be issued by an authority that is protecting the route for the nationalised airline. We have three ATR ON THE BOOKS AND AS YET NO ROUTES APPROVED as far as I know. Asssts sitting around is never good practice.
Nico apparently said in an interview "A) The ATR’s are a key addition to our fleet as it allows for the operation of routes that are not suitable for jet aircraft. The aircraft will be deployed in Tanzania, we have just received approval on registration of the fleet, and presently engaging with the relevant regulatory bodies to acquire relevant route rights."
With Kigoma route licence denied by Tanzania authorities and bearing this in mind why do we invest in aircraft months before we apply for a route licence. Surely this is the wrong way round and hugely risky. Is there a plan B if these Tan domestic route licences are denied?
You are absolutely right PMJINVEST. Nico has made a major cockpit and then covered it up with these 3 ATRs.
There is no hope of flying them in Tanzania, as the government won't allow it. Same goes for Zambia and Uganda. South Africa is out too as finding a local partner is not going to happen soon. Flying them in Zimbabwe is possible but is the point if you cannot recover earnings. Mozambique seems the only possibility, but there is no mention of that.
Best option is to sell them and do nothing but build load factor on the routes we have with the aircraft we have. No options e it's except slow steady growth. This airline if it survives will take a decade to achieve meaniful stature.
Slow to approve everything, protecting the interests of national carriers or the prospect of national carriers, their foriegn currency controls don't allow revenues earned to be repatriated to pay fuel, spares etc. FJet U.K. $ bank account was being emptied to pay for set-up and operating costs and revenues were stuck in African currenciy bank accounts. In 2013 I gambled Fly540 was a good deal it turned out to be a con jod that we fell for. I gambled Africa would change its attitude. It didn't. I have lost a packet and have been burnt badly. Thank goodness EasyJet, Ryanair and Dart Group have paid off handsomely.
The real problems is that management's hands are tied and always have been. African governments either protect their national carriers or they are hamstrung by foriegn exchange restrictions and so refuse FJet repatriation of foreign currency earnings out of the country it has been earned in.
FJet's only hope it can stay solvent until the las test crop of ,emerging nationtional carriers go bust as they surely will.