30 Jun 2017 07:00
Fastjet Plc
("fastjet" or the "Company")
(AIM: FJET)
Trading Update
30 June 2017
fastjet, the low-cost African airline, is today providing an update on trading for the period from 1 January 2017 to date, ahead of its Annual General Meeting to be held later today.
The Company has made steady progress in implementing stabilisation efforts, including inter alia, a re-fleeting process, relocation of its headquarters from London to Johannesburg and a right-sizing of its operations in Zimbabwe and Tanzania. These steps are having the desired effect and accordingly fastjet aims to achieve a cashflow break-even position for the final quarter of 2017. The Company, aiming to leverage its relationship with Solenta Aviation Holdings, a strategic investor who acquired a shareholding in fastjet in January 2017 and who has an operational footprint in a number of African countries, is in the process of evaluating expansion options to further geographies and looks forward to making further announcements in due course.
The Company also announces that it has, on 29 June 2017, entered into an agreement with easyGroup Holdings Ltd to acquire all intellectual property rights associated with the fastjet brand for a total consideration of $2.5 million, to be satisfied in cash, resulting in saving to the Company over the next 5 years. This agreement represents a major step forward as the Company continues with its stabilisation efforts under new management.
Sir Stelios Haji-Ioannou, who established the fastjet brand in 2012 and founded easyJet in 1995, stated:
"fastjet is a great brand in all its African markets, making it a highly valuable asset for the company. I have accepted the view of the current board that the company should own its own brand rather than licence it from me. I feel we have agreed a fair price for its transfer - $2.5m - which is less than what the company would have had to pay over the next five years. I still hold shares worth about £1.3m in the company and as such I will be a supportive shareholder, hoping to realise significant upside potential as fastjet grows and prospers. From the decisive actions thus far taken by the new Management and Board, and early indicative outcomes, I am encouraged that fastjet's direction of travel is now on the right course"
Nico Bezuidenhout, CEO of fastjet, appointed in the latter part of 2016, stated:
"Brand development is an integral part of building a successful consumer facing business and represents a substantial investment for any airline - it logically follows that your brand, an asset to be leveraged for the benefit of Shareholders, should be under your full control and ownership. We are happy to have reached agreement with Sir Stelios and appreciate the ongoing confidence he has expressed in the fastjet business and leadership team."
Fastjet, at the airshow held in Paris last week, was awarded the prestigious Skytrax award as Best Low Cost Carrier in Africa.
For more information, contact:
fastjet Plc | Tel: +44 (0) 20 3651 6307 |
Nico Bezuidenhout, Chief Executive Officer Michael Muller, 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 Nick Hayns |
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South African media - Hein Kaiser | Tel: +27 (0) 82 520 0555 |
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For investor enquiries please contact: |
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Liberum Capital Limited - Nominated Adviser and Broker | Tel: +44 (0) 20 3100 2222 |
Clayton Bush |
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Jill Li |
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NOTES TO EDITORS
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 Alternative Investment Market ("AIM").
For more information see www.fastjet.com.