David Lenigas has resigned as chairman of struggling Tanzanian LCC, fastjet (FN) with immediate effect and has been replaced by Chief Executive Officer, Ed Winter, on an interim basis, until a permanent successor is found.
Wednesday, June 12, 2013
Monday, January 28, 2013
Further to the press comment made by the UK’s Sunday Times newspaper (“EasyJet’s chairman quits after Stelios rows”, Section 3: Business, Page 1), Five Forty Aviation Ltd confirms that it has instructed its lawyers to recover an acknowledged debt of USD6.8million from Lonrho Aviation Ltd.
Friday, June 15, 2012
Following on from this week's acquisition of Lonrho Aviation (t/a Fly540), FastJet Ghana's parent company Rubicon Investments, of which Stelios Haji-Ioannou of EasyJet fame is a 5% shareholder, has outlined its plans and future prospects for the transformation of and integration of Fly540 into a Pan-African LCC giant.
A Low Cost Carrier headquartered in Nairobi, Kenya, Fly540 has franchises in Angola, Ghana, Tanzania and Ghana, and operates ATR 72s, CRJ-100s, DHC 8-100s and McDonnell Douglas DC 9s. Collectively, its route network includes various cities in Kenya, Tanzania, Angola, Burkina Faso, Ghana, Burundi, Liberia, Nigeria, South Sudan and Uganda.
|A FastJet Airbus A319 rendering|
In its beginning stages, FastJet will coexist with Fly540, whilst the former moves to build a fleet using either Airbus A319s, Boeing 737-700s and/or Embraer EMB-190s. Once fleet consolidation is achieved as per the classic LCC model (a uniform fleet keeps maintenance costs down), Fly540's current aircraft leases are to be allowed to expire, before the brand itself is phased out, leaving FastJet as the main driving force.
Ultimately, FastJet aims to carry more than 12 million passengers a year, by focussing on Africa's burgeoning middle class - a phenomenon that is fast becoming a reality in Angola, Kenya and Nigeria, where substantial economic growth in recent years has meant more money in the pocket for the ordinary man on the street.
""If you take the four countries, they have a total population of 100 million people. If you estimate that all our customers come from just those countries alone, you could see three million of them becoming customers with us, flying a couple of times a year. That would generate something like 12.8 million passengers [annually]." "
At the helm of FastJet will be many of Haji-Ioannou's colleagues from his days at EasyJet: Richard Boden, a former Contracts Manager at EasyJet, Ed Winter, FastJet's new CEO and formerly easyJet's Chief Operating Officer, whilst Haji-Ioannou himself, will be a consultant.
Wednesday, June 13, 2012
► UNITED KINGDOM: Stelios Haji-Ioannou acquires Fly540's parent company Lonrho Aviation; FastJet one step closer to reality.
|Stelios Haji-Ioannou (easyGroup)|
As part of the deal, Haji-Ioannou's easyGroup Holdings Limited will own 5% of the ordinary share capital of Rubicon with the option of acquiring a further 10% in addition to receiving royalties equivalent to 0.5% of revenue. Rubicon will also avail its substantial financial resources and experience with its successful Fly540 brand, to allow for the realization of "FastJet", the soon-to-be Ghanaian startup that will service West Africa.
Lonrho Aviation t/a Fly540 is a Nairobi-based LCC with franchises in Kenya, Tanzania, Ghana and Angola, who, as of 31 December 2011 had Total Assets of US$ 83.5 million and in the 15 months to December 2011, made a loss after tax of US$ 19.0 million. The majority of these losses were predominantly due to the start-up and establishment costs of opening the Angola and Ghana operational hubs.
"In addition to the partnership with easyGroup, a key benefit of the Transaction to Lonrho is the substantial cash resources held by Rubicon (£8.8m as at 31 December 2011) which will be available for continued investment in the airline business following Completion.
Fastjet will focus on developing a true low cost airline for Africa based on the existing Lonrho Aviation platform which, in its existing operations as Fly540, had turnover of US$57 million and carried 525,375 passengers in the 15 months to 31st December 2011. Passenger loads continue to increase with Fly540 carrying 53,225 for the month of May 2012."