Fastjet flags dwindling cash resources, may end Tanzania operations

African budget airline Fastjet Plc is facing a cash crunch. FILE PHOTO | NMG 

In Summary

• The budget airline has offered shares for cash at least twice in the last three months to meet its cash requirements.

By REUTERS
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African airline Fastjet Plc said on Wednesday its available cash resources were minimal and that it was in talks with major shareholders regarding potential fundraising, sending shares down more than 30 per cent.

The company also said it was evaluating its Tanzanian operations and could cease operations in that country.

Fastjet said that changes in the competitive landscape in Tanzania, and the impact on the “Tanzanian airline and local company have been significant”.

“Additional funding will be required by the end of October to enable Fastjet to continue operating”, the company said in Wednesday’s statement.

The company has faced a cash crunch, attempting to raise money a few times over the past few months, including last year to expand in South Africa and Mozambique.

The budget airline has offered shares for cash at least twice in the last three months to meet its cash requirements.

Fastjet was started by Stelios Haji-Ioannou, the son of a shipping magnate and founder of budget airline easyJet.