Tuesday, October 4, 2016

Fastjet sells only owned aircraft to raise $8million

Dar es Salaam, Monday
STRUGGLING African low cost carrier Fastjet is raising 8 million US dollars by selling its only wholly-owned aircraft.

Fastjet Chief Executive Nico Bezuidenhout said, in a statement that “The sale of our Airbus A319 is an important step in our stabilisation plan and our move towards a more appropriate size of fleet.
“Its early days but the plan is progressing well and the money raised from this sale will be used to drive its continued implementation,” he said. The disposal of the Airbus A319 is part of a fleet reduction plan as it moves to smaller aircraft on short term leases.
“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,” he said.
The cost-cutting restructuring was announced last month after Fastjet revealed a loss of 15 million US dollars for the first half of the year. Changes to the fleet are designed to cut costs by 15 per cent in 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“It is intended that the wet lease arrangements will be superseded by dry leases -aircraft only – in the first half of 2017,” he said. The airline was established in Tanzania four years ago with backing from easyJet founder Sir Stelios Haji-Ioannou.

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