Friday, August 23, 2013

► TANZANIA: fastjet to embark on a staff-cutting exercise in bid to ease financial pressure.

fastjetStruggling LCC fastjet (FN), is set to become the second major Tanzanian carrier to embark on a redundancy drive following reports that it is in consultations with its employees regarding pending staff cuts aimed at trimming its head-count by 12%. 

fastjet A319
Tanzania's Daily News says that fastjet is set to meet its cabin crew today (August 23) "to communicate the reasons for the intended retrenchment and discuss possible measures to minimise the number of lay offs." Thus far, the airline is believed to have already retrenched nine employees from its Operations and Commercial ground-based departments in Arusha, Mwanza and Dar es Salaam.

The move comes as the LCC's shareholders recently gave the go-ahead for a reorganization of the carrier aimed at strengthening its weak share price which has struggled to remain above the critical price of 1p (GBP0.01)/share. The low prices consequently blocked the airline from issuing new shares to fund growth.

Fellow Tanzanian carrier Precision Air (PW) recently asked government for a USD32million cash injection to help stave off bankruptcy. As part of its own drastic measures, it too has announced plans to trim its workforce down from its current 700-strong.