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3 Oct 2016 07:00
fastjet Plc
("fastjet" or the "Company")
(AIM: FJET)
Operational Fleet Update
03 October 2016
fastjet (AIM:FJET), Africa's low-cost airline, announces that it has entered into a binding sale agreement with Avtrade Limited, of its sole owned Airbus A319 (Manufacturer's Serial number 2891). The consideration is being satisfied in cash for USD8.0 million with a 10% deposit payable on signature of the agreement and the balance on delivery. The agreement is subject to industry standard conditions precedent. Included in the agreement is an option to continue to operate the aircraft from Oct 3 to Oct 17 2016 with a reduction in proceeds of $200,000 for a usage of up to 100 cycles. The use of proceeds will be utilised as working capital for the implementation of fastjet's Stabilisation Plan as outlined in the Company's interim results announcement.
As previously announced, fastjet is reducing the size of its fleet and is transitioning its fleet from the existing A319 aircraft to smaller aircraft, a move which is expected to yield an approximately 15% cost reduction for fuel, maintenance, handling and navigation charges. The transition from the existing aircraft to the replacement fleet will initially be arranged through short term wet leases (aircraft, crew, maintenance and insurance). It is intended that the wet lease arrangements will be superseded by dry leases (aircraft only) in H1 2017.
Nico Bezuidenhout, Chief Executive Officer, commented:
"The sale of our Airbus A319 is an important step in our Stabilisation Plan and our move towards a more appropriate size of fleet. It's early days but the Plan is progressing well and the money raised from this sale will be used to drive its continued implementation."
For more information, contact:
fastjet Plc | Tel: +44 (0) 20 3651 6307 |
Nico Bezuidenhout, Chief Executive Officer Lisa Mitchell, Chief Financial Officer |
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UK media - Citigate Dewe Rogerson | Tel: +44 (0) 20 7638 9571 |
Eleni Menikou |
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Toby Moore |
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Nick Hayns |
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South African media - Tribeca Public Relations | Tel: +27 (0) 11 208 5500 |
Cian Mac Eochaidh |
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Kelly Webster |
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For investor enquiries please contact: |
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Liberum Capital Limited - Nominated Adviser and Joint Broker | Tel: +44 (0) 20 3100 2222 |
Clayton Bush |
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Christopher Britton Jill Li |
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W.H. Ireland Ltd.- Joint Broker | Tel: +44 (0) 20 7220 1666 |
James Joyce |
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Mark Leonard |
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NOTES TO EDITORS
About fastjet Plc
About fastjet Plc
fastjet Plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at unprecedented low prices. Utilising a fleet of modern jet aircraft, fastjet has a long term strategy to implement the low-cost carrier model across Africa to become the continent's first low-cost, pan-Africa airline.
The results of the second quarter 2016 customer satisfaction surveys showed that an average of 73% of customers were likely to recommend fastjet to a friend. In developing its strong brand and identity, fastjet has won and been nominated for a number of awards, including Africa's Leading Low-Cost Airline 2016 at the 23rd World Travel Awards, winning three Transform awards for the rebrand and launch of fastjet, the award for "Brand Strategy of the Year" at 2014's Drum Marketing Awards in London, and the Transport Innovator Award at the 8th Transport Africa Awards 2015 in Johannesburg.
This announcement contains inside information for the purposes of the Market Abuse Regulation.
fastjet Plc is quoted on the London Stock Exchange's AIM Market.
For more information see www.fastjet.com
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