Fastjet PLC secures first owned aircraft worth 33bn/-

By The guardian reporter

Fastjet Plc

Tanzania-based Africa’s low-cost airline Fastjet Plc. (fastjet) has this week bought its first aircraft, which sectoral analysts said could have cost the carrier over 30bn/- to acquire.

 

The market value of the Airbus A319, which was acquired on Wednesday last week, is put at US$15.5m (nearly 33.6bn/-). The pan-African airline said in a statement on Monday that the aircraft was bought at a discount.

 

Aviation insiders say a brand new A319, the shortened-fuselage version of Airbus’ A320 cornerstone single-aisle jetliner, costs $60m (about 129.9bn/-). The A319 versions have capacity to carry up to 160 passengers.

 

“Fastjet took delivery of its first owned aircraft on September 25, 2015. The intent to purchase this aircraft, the sixth aircraft in the fastjet fleet, was announced on August 26, 2015 and the agreement was signed on September 23, 2015,” the discount carrier said in a statement.

 

The plane was bought from BBAM US LP of San Francisco in the US. It is expected to be delivered in November.

 

“The aircraft was purchased at a discount to the market value with the consideration being satisfied in cash,” the statement further noted.

 

Chief executive officer Ed Winter said it was earmarked to be the first aircraft in the fastjet Zambia fleet, where the carrier expects to start operating in December. According to him, the Airbus will be flown to Lusaka after its reconfiguration and painting.

 

The discount carrier is nearing final licensing in Zimbabwe and Zambia. Operations in Zimbabwe where trial flights have started this week are set for next month.

 

On Monday, CEO Winter said the company anticipates having three bases - Tanzania, Zambia and Zimbabwe - "fully operational by the end of the year”. 

 

Following this week’s acquisition, fastjet now has six aircraft of which five have been leased. During a fundraising event in April, the company said it wanted to create a mixed fleet of leased and purchased aircraft.

 

“This is an exciting moment for fastjet with this aircraft not only being the first that we have purchased but also that it marks a doubling in the size of our fleet over the past few months,” Winter said.

 

“I am particularly pleased that we have purchased this aircraft from BBAM who showed confidence in the company by leasing the first aircraft to fastjet in 2012,” he noted in the statement.

 

Fastjet was advised by SkyWorks Leasing in the purchase of the aircraft.

 

Buoyed by a 56 per cent rise in booked flights during the half-year period to the end of June, fastjet leased its fifth plane last month from SMBC Aviation Capital Limited (SMBC), a global aircraft leasing company.