Aviation Industry: Precision air vs Air Tanzania vs Fastjet

[h=1]fastjet celebrates its 75,000th Passenger Milestone![/h]27th Feb '13 by fastjet Tanzania


Since jetting off in November 2012, we have received so much love and support from customers and fans that today we can celebrate having our 75,000 passenger!
Mrs Veronica Chuwa of Mwanza was our 75,000[SUP]th[/SUP] passenger. In honour of this milestone and to thank Mrs Chuwa, one of fastjet's Airbus 319 aircrafts will be named after her. Along with this, she was also presented with two complementary fastjet tickets to a destination of her choice.
Commenting on fastjet's great achievement, General Manager Kyle Haywood said:
"This is another great milestone in fastjet's drive to open up air travel to countless Tanzanians who previously could not afford to fly. Since the start of our operations in November last year, the number of passengers booking flights with fastjet has been consistently high, with an average load factor of over 70%. This is testament to the genuine demand for low-cost air travel among the people of Tanzania."
fastjet, which began in November last year, now operate Kilimanjaro and Mwanza flights from Dar-es-Salaam three times a day, seven days a week. We are also proud to announce the launch of 2 new routes which will happen once a day, daily from Kilimanjaro to Mwanza, and Kilimanjaro to Zanzibar!
With thanks to all the support from fans, fastjet are now the most liked airline in East Africa, with over 40,000 likes on Facebook! We have been able to successfully provide low cost travel to East Africa, and have delivered a level of safety and performance in air travel never seen before in the country. 99.7% of fastjet flights depart on time, which has set a new record for reliability in air travel for the country.
fastjet is committed to growing its operations and will continue to serve its customers with reliable, affordable, safe air travel. With constant support from all its customers and the wider Tanzanian community, we are proud to be able to do so and thank you once again.
fastjet celebrates its 75,000th Passenger Milestone! - Blog - Fastjet
 
we bwana acha day dreaming zilikuwa zinajaa at what ticket price? na unajua kwanini zilirudishwa? unajua leasing agreement aliyofanya ndugu yako Chiza? gharama za kuendesha ile aircraft yaani fuel consumption per km? Huyo Chiza kama kweli angekuwa mzalendo basi angeshonesha uniforms hapa TZ na si kupeleka mtu China kushonesha halafu bei ikawa kubwa ya kutupa! unashonesha uniforms wakati huna fedha za mafuta ya kutosha kwanini wasingenunua suit za kawaida tu plain colour! Umeona uniforms za Fastjet?
 
[h=2]FastJet to fly to Nairobi soon[/h][h=3]The pan-Africa budget airline said the Dar-Nairobi frequency would not take long since negotiations have been going on for quite some time.[/h]
Fastjet​
According to chief executive Ed Winter, the flights from Tanzania to Kenya will take off this year. “I hope to be flying to Kenya before long. Negotiations have been going on a long time now and I think there’s a level of activity now that elections are over,” Mr Winter said.The airline believes that by establishing cheap, regular and reliable services, it will stimulate Africa’s aviation market, lowering costs for customers and creating the connectivity that the continent needs.Fastjet currently operates from a base in Tanzania, but will also establish a registered company in Zambia this year, allowing it to create a network of domestic flights within the landlocked southern African country. “In Zambia we have found the government really welcoming.In fact they contacted us originally, so they are the countries who see the opportunity for low-cost aviation,” says Mr Winter, a former pilot who previously held senior positions at easyJet and Go.
Fastjet hopes to become the first continent-wide budget airline, using Tanzania as a springboard into the continent in the same way that easyJet used the UK to launch across Europe in the 1990s.It plans to create bases in countries other than Zambia and Tanzania, and is eyeing operations Angola and Kenya – potentially using the Fly540 brand it acquired from Lonrho.The group registered 20 per cent growth in revenues for December compared to the previous month, thanks to stabilising Tanzanian operations.Earnings climbed to 3.6million US dollars as the number of passengers increased, and yield on each of those individuals reached 97 US dollars compared to 45 US dollars in January 2013.Source Tanzania Daily News
FastJet to fly to Nairobi soon | In2EastAfrica – East African news, Headlines, Business, Tourism, Sports, Health, Entertainment, Education
 
Geza Ulole nilisoma mahali hawa jamaa wanampango wa kuhamishia ofisi zao Nairobi, ni kweli?
 
Chamoto said:
Geza Ulole nilisoma mahali hawa jamaa wanampango wa kuhamishia ofisi zao Nairobi, ni kweli?
Click to expand...
sidhani though that was the plan before! wana mpango wa kuanzisha ofisi Nairobi; the future looks bright if they stay in Dar with tourism, natural resources and energy sectors picking up faster than any other place on the continent!
 
pmwasyoke said:
Lugha ya kubail out ATC inanishangaza. Watakuwa bailed out mara ngapi kwa kodi zetu? Kama ni pride kuna gharama ambapo hiyo pride haiwi worth it - na ATC imeifikia gharama hiyo. Wacha ifilie mbali.
Click to expand...

Mkuu nakubaliana na wewe kabisa. Kwani ni lazima tuwe na shirika la uma kwa usafiri wa anga? Hapa cha msingi tunachohitaji ni huduma bora na ya uhakika kwa bei muafaka. Kama sekta binafsi inaweza na tayari inafanya vizuri kuzidi shirika la uma, basi, hatuna sababu ya kuendelea kutupa kodi za wananchi kwa mashirika ambayo hayana tija. Bora serikali ikajikita kwenye reli..
 
Precision seeks KQ bailout as Dar govt snubs airline


A Precision Air carrier. The airline has been facing cash flow challenges occasioned by an overambitious expansion plan that saw it add new aircraft. FILE

IN SUMMARY

  • Precision Air approached KQ, which owns 41.23 per cent of the airline, for financing, as the Dar es Salaam-based airline seeks ways to shore up its eroded cash position.
  • The airline has been facing cash flow challenges occasioned by an overambitious expansion plan that saw it add new aircraft.
  • Precision Air said apart from KQ, it was also talking to other investors, including other airlines, keen on taking up a stake in the airline.


Kenya Airways (KQ) and Tanzania's Precision Air are in talks over a deal that could see the Nairobi-based carrier raise its stake in the latter, by injecting up to $30 million into it.

The move comes after similar discussions between the Tanzanian government and Precision Air, in which the former was expected to inject $30 million into the struggling company, flopped.

READ: Dar govt pushes for Precision Air shares' valuation before investing

Precision chairman Michael Shirima told The EastAfrican that his airline had approached KQ, which owns 41.23 per cent of the airline, for financing, as the Dar es Salaam-based airline seeks ways to shore up its eroded cash position.

"KQ was waiting for the government's decision…. when the government gave us its final decision on the matter, KQ came up with the idea to increase its stake, over which we are still in discussion. Our aim is it get between $20 million and $30 million through equity," said Mr Shirima.

Late last year, Ernst and Young, Precision's auditors, raised concerns over the viability of the airline in the light of surging debts, saying it must move fast to secure financing if it is to remain afloat.

The company's audit report painted a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).
READ: Precision may not last long in the air, auditors now warn

Also, for several years, it has not remitted its statutory deductions and indirect taxes to the government, amounting to Tsh19 billion ($12 million) as of March 2013, notes the report prepared by Ernst & Young, and tabled at the annual general meeting last November.

"These conditions cast significant doubt on the company's ability to forge ahead," said the auditors.

The airline has been facing cash flow challenges occasioned by an overambitious expansion plan that saw it add new aircraft. This has hurt its competitiveness, especially as it struggled to stave off competition from budget airline Fastjet, whose relatively affordable fares have had a big impact on the local market.

In 2011, KQ reduced its ownership in Precision from 49 per cent to 41.23 per cent through an initial public offerings (IPO) on the Dar es Salaam Securities Exchange.

Over the past few years, a mix of fleet expansion and loss-making also affected KQ's cash flow, and though the carrier raised Ksh14.6 billion ($169 million) through a rights issue, it is expected it will use a good proportion of it as down payment for the new 787 Dreamliners that it is expecting starting March and into 2016.

"KQ experienced problems last year, but currently it has a healthy cash flow, and so we are optimistic it will clinch the deal," said Mr Shirima.

Additional investors

Precision Air said apart from KQ, it was also talking to other investors, including other airlines, keen on taking up a stake in the airline.

"We are currently in talks with three firms whose identity I cannot disclose; the arrangement is for them to expand equity, and once we get it, we are going to consider selling our aircraft and leasing them back," said Mr Shirima.

The company announced a Tsh30 billion ($18.2 million) loss during the first half of this year, and is seeking over Tsh51 billion ($30.9 million) to enable it to get back on its feet. Mr Shirima, who owns 42.91 per cent of Precision is the airline's majority shareholder, followed by KQ.

The remaining Precision shares were sold on the Dar es Salaam Stock Exchange in the IPO that failed to raise the intended capital meant to finance the airline's expansion drive.

Tanzania's biggest airline had sought to raise about Tsh28 billion ($16.5 million) but managed to collect just Tsh11.84 billion.

Industry observers believe that it was during this time that the airline started experiencing difficulties.

"They wouldn't have needed a government bailout or a KQ injection of capital had the IPO gone according to plan," said the source.

The company's CEO, Sauda Rajab, said they were currently finalising budget plans for this year, and expected to have everything in perspective by next month.

"This year's plans include the code sharing partnership between Precision Air and Air Uganda. The agreement is for both the airlines to work together on the Dar es Salaam-Entebbe and Kilimanjaro-Entebbe routes," said Ms Rajab.

She said that the two airlines would both sell tickets and increase passenger numbers of either airline, while offering travellers an increased choice of flights between the two cities.

Additional reporting by Peterson Thiong'o



http://www.theeastafrican.co.ke/business/Precision-seeks-KQ-bailout-as-Dar-govt-snubs-airline/-/2560/2169136/-/view/printVersion/-/rt91qg/-/index.html

MY TAKE
I advised them to sell shares to another airline outside the continent e.g. Qatar Airways or Emirates or Quantas or Chinese Airlines or else sell those aircraft to Fastjet since allowing KQ owning more shares in PW won't help since KQ is a reason for PW failures e.g. having shares in PW one would have imagined KQ would have left profitable routes like Dar-Nrb, Znz-Nrb and Kilimanjaro-Nrb in the region to be under PW but guess what KQ has taken those route and reduced PW to only local routes. As an insult to PW, KQ is starting a budget airline (Jambo airline) in the same market!
 

Fastjet is growing tremendously the total number of fans in facebook is now over 100,000 with the Zambia launch the number is expected to grow bigger.:A S wink:
 
Fastjet's latest metrics show low cost model works in Africa, says Winter


By Giles GwinnettFebruary 14 2014, 3:13pm


All of its flights out of Lusaka have been fully booked, and chief executive Ed Winter said he is confident that this route will "grow substantially."fastjet's (LON:FJET) latest January metrics show it has established the "low cost model" works in Africa, interim chairman and CEO Ed Winter told Proactive.
It came after the budget airline said its operations in Tanzania last month carried 31,241 passengers, achieving a load factor of 60%.
The average yield per passenger was US$88, compared with US$46 in the same month last year.
This gave total revenue in January of US$2.75mln, a 128% year-on-year rise based on a 27% rise increase in capacity.
"I think it's a turning point for fastjet. We've proven the model works," said Winter.
"Over the last year we've really stimulated the market - a lot of people who didn't fly before are now flying with us, and over that period we have dramatically increased the average yield per passenger so those numbers are now coming through.."
On Friday, fastjet also revealed its new Dar es Salaam to Lusaka route is proving particularly popular with the Zambian passengers.
All of its flights out of Lusaka have been fully booked, and chief executive Ed Winter said he is confident that this route will "grow substantially."
Last month the firm said it had started discussions with the Zambian government over creating a new operation based in Lusaka and Winter told Proactive today the company was "very excited" about this opportunity.
"We see Zambia as a new base for us," he said, adding it was a great environment to develop the business .
Looking ahead, Winter said the group, having proven the model and established the reputation, now wanted to capitalise the company and get plans in place to expand and fulfil its aim of beoming Africa's first pan-African low cost carrier.
Shares in the firm eased 3.41% on Friday to stand at 2.125p.



http://www.proactiveinvestors.co.uk...-model-works-in-africa-says-winter-65826.html

MY TAKE
The airline should now strive to fly Kampala-Dar, Kigali-Dar, Bujumbura-Dar and Nairobi-Dar routes
 
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Fastjet to roll out car hire and online parking services




By Giles Gwinnett

March 11 2014, 8:10am

"fastjet will also continue to work in each of the local markets in which it operates to identify uniquely local ancillary products that help promote local commerce and increase customer satisfaction."Fastjet (LON:FJET) customers are set to be able to hire cars and book parking through the budget carrier's services - after it struck two travel agreements.

The joint ventures are with Rentalcars.com parent company, TravelJigsaw and Looking4Parking.com (L4P).

Ellis Cain-Jones, head of commercial, at Fastjet said: "Ancillary revenues are a key element of the low cost model and contribute to the airline's revenues.

"These joint-ventures, together with our rapidly developing on-board retail offering, are the first of a very exciting list of customer-centric products Fastjet expects to roll-out over the coming months.

"Fastjet will also continue to work in each of the local markets in which it operates to identify uniquely local ancillary products that help promote local commerce and increase customer satisfaction."

Ady Guthrie, of Rentalcars.com, said: "We're very excited by the prospect of Fastjet's continued growth within the African market and look forward to being able to offer top quality car hire brands to Fastjet customers.

"The joint venture with Looking4Parking will initially serve Fastjet passengers flying between Johannesburg and Dar es Salaam, offering parking at three sites at O R Tambo International Airport. The service will also be available in Cape Town and Durban, in preparation for Fastjet's expansion in the South Africa."

Opportunities to launch the secure parking service in other African airports where Fastjet has a presence will also be explored, he added.
Fastjet to roll out car hire and online parking services - Proactiveinvestors (UK)

FastJet Teams Up With TravelJigSaw and Looking4Parking to Provide Car Hire Services


​
The travel industry is not what it used to be. More and more customers are opting to travel with low-cost airlines instead of full-service airlines. They also want budget carriers to offer more services than they use to. To keep up with demand, budget airline FastJet has announced two new partnerships that it will use to offer new ancillary products.
FastJet, which is based in Africa, said that it has formed deals with TravelJigSaw, which offers low-cost car rentals in Africa, and Loooking4Parking, a parking service provider. These new partnerships will give FastJet passengers even more choices when they travel with the airline.
The head of commercial business at FastJet, Ellis Cain-Jones, said that ancillary revenue is a very important part of the airline's low-cost model. It wants passengers to get plane tickets that they can afford. However, it also wants customers to have the ability to purchase extra services if they choose.
Cain-Jones added that this is just the start of even bigger things for FastJet. The airline is looking to add even more services in the coming months. To accomplish this, the carrier is going to work with local markets from all over Africa and in other areas to identify local ancillary services that it can use. The end result will hopefully be increased customer satisfaction.
These new services will not be available for purchase on every flight from the beginning. For example, the new partnership with Looking4Parking is not going to be seen on every flight. This new service will only be seen on flights between Johannesburg and Dar es Salaam. If the service turns out to be very successful, the airline will roll out the service on other routes as well.
FastJet was launched in 2011 and has the backing of easyJet. The carrier's goal is to bring low-cost flights to Africa. However, FastJet does not have to be limited to just flying in Africa. It has already been given clearance to be an international airline.
The only reason why FastJet has not gone international yet is because it has been hammered with one problem after another. This includes a number of accounting and legal issues. These problems have led to the airline seeing a nasty 96.62 percent drop in its shares, so shares for the airline can be purchased for just 2p.
This bad luck has not kept FastJet from pushing forward. The airline was still able to carry over 31,000 passengers in Tanzania during January of this year. It is averaging around $88 a passenger, a huge step up from the $46 it was averaging in January of 2013. Only time will tell if FastJet can bounce back and become the international airline that it wants to be.
http://news.carrentals.co.uk/fastje...ng-to-provide-car-hire-services-34266947.html


 
ATCL gets 50-seater jet as part of expansion


ATCL chief executive officer Milton Lazaro disembark from the newly acquired 50-seater Canadian CRJ-200 Jet aircraft at Dar es Salaam's Julius Nyerere International Airport on Thursday. PHOTO | JENNIFER SUMI

IN SUMMARY

  • The airline plans to introduce a number of new destinations including Tabora-Mpanda and Mbeya-Dar es Salaam while increasing frequencies on Mwanza- Dar es Salaam, Dar es Salaam-Comoros, Mtwara and Kigoma routes


Dar es Salaam. Tanzania national flag carrier (Air Tanzania) has acquired a 50-seater Canadian CRJ-200 jet aircraft, as part of implementing its ambitious and aggressive expansion plan.

Air Tanzania Company Limited (ATCL) sees this new development as a step towards achieving its go-green strategy as the aircraft will boost the airline services considerably by opening new routes, increasing flight frequencies to existing routes and assuring reliability to its loyal customers.

Shortly after landing at Julius Nyerere International Airport in Dar es Salaam on Thursday evening, ATCL acting chief executive officer Milton Lazaro said the future of the national flag carrier is bright as it has come up with a workable expansion strategy whose implementation has started.

"This aircraft is part of three aircraft we planned to acquire this year. The other two are expected to arrive between April and May this year. The addition of this aircraft to our fleet will enable us to open new frontiers and add more routes into our footprint," said Mr Lazaro. He said the other two aircraft to be acquired are 78-seater new generation types, which will also be deployed on new national and international routes. Mr Lazaro said the airline plans to introduce a number of new destinations including Tabora-Mpanda and Mbeya-Dar es Salaam while increasing frequencies on Mwanza- Dar es Salaam, Dar es Salaam-Comoros, Mtwara and Kigoma routes.

"We also intend to open up Tabora–Mpanda route soon," he said.

He mentioned that the airline has also waived some penalties imposed on no-show passengers or those seeking change of reservation, saying this will save their passengers from incurring extra costs in case they encounter unforeseen emergencies before travelling.

"In a move to support our guests and showing them that we understand our circumstances and business environment, the airline has decided to waive penalties on passengers who fail to show up at the airport before departure time (No-show penalties) and Reservation alteration penalty," he said.

According to Mr Lazaro, acquisition of this initial aircraft will increase the airline's passenger uplift by 30 to 40 per cent, given that the national flag carrier is considered to have the most competitive and affordable fares in the local airline industry.

Using its Bombardier Dash-8, ATCL is currently plying to over 8 destinations that includes Mtwara, Mwanza, Tabora, Kigoma Dar es Salaam, Bujumbura, Mbeya and Moroni in Comoros.



http://www.thecitizen.co.tz/News/ATCL-gets-50-seater-jet-as-part-of-expansion/-/1840392/2235704/-/view/printVersion/-/jxk1y7z/-/index.html
 
FastJet Teams Up With TravelJigSaw and Looking4Parking to Provide Car Hire Services



The travel industry is not what it used to be. More and more customers are opting to travel with low-cost airlines instead of full-service airlines. They also want budget carriers to offer more services than they use to. To keep up with demand, budget airline FastJet has announced two new partnerships that it will use to offer new ancillary products.

FastJet, which is based in Africa, said that it has formed deals with TravelJigSaw, which offers low-cost car rentals in Africa, and Loooking4Parking, a parking service provider. These new partnerships will give FastJet passengers even more choices when they travel with the airline.

The head of commercial business at FastJet, Ellis Cain-Jones, said that ancillary revenue is a very important part of the airline's low-cost model. It wants passengers to get plane tickets that they can afford. However, it also wants customers to have the ability to purchase extra services if they choose.
Cain-Jones added that this is just the start of even bigger things for FastJet. The airline is looking to add even more services in the coming months. To accomplish this, the carrier is going to work with local markets from all over Africa and in other areas to identify local ancillary services that it can use.

The end result will hopefully be increased customer satisfaction.

These new services will not be available for purchase on every flight from the beginning. For example, the new partnership with Looking4Parking is not going to be seen on every flight. This new service will only be seen on flights between Johannesburg and Dar es Salaam. If the service turns out to be very successful, the airline will roll out the service on other routes as well.

FastJet was launched in 2011 and has the backing of easyJet. The carrier's goal is to bring low-cost flights to Africa. However, FastJet does not have to be limited to just flying in Africa. It has already been given clearance to be an international airline.

The only reason why FastJet has not gone international yet is because it has been hammered with one problem after another. This includes a number of accounting and legal issues. These problems have led to the airline seeing a nasty 96.62 percent drop in its shares, so shares for the airline can be purchased for just 2p.

This bad luck has not kept FastJet from pushing forward. The airline was still able to carry over 31,000 passengers in Tanzania during January of this year. It is averaging around $88 a passenger, a huge step up from the $46 it was averaging in January of 2013. Only time will tell if FastJet can bounce back and become the international airline that it wants to be.

http://news.carrentals.co.uk/fastjet-teams-up-with-traveljigsaw-and-looking4parking-to-provide-car-hire-services-34266947.html
 
[h=1]8 New fastjet Pilots Pass their Professional Pilots Training[/h]10th Mar '14 by CMS Admin


As part of our ongoing focus on recruitment and development, we are delighted to announce that 8 new pilots have successfully passed their pilot training programmes with fastjet!
Each of the pilots had to complete and achieve a Tanzanian Professional Pilots Licence and they also received A319 ratings, meaning that they are now able to fly our fastjet A319 fleet.
A significant part of the training included attending A319 technical ground school. Once the trainees passed this element of the programme, they then went onto complete their aircraft simulator training. From beginning to end, the training takes 4 months to complete so we would like to offer big congratulations to:

  1. Abdulaziz Mandani
  2. Romit Parmar
  3. Arif Jinnah
  4. Abeid Mayoya
  5. Soud S Al-Toky
  6. Donald Msigwa
  7. Pirmohamed Mulla
  8. Maqbul Sange
We are ecstatic to welcome these new pilots to the company. We are entirely dedicated to a long term investment in pilot training, so it’s great to see our new recruits pass their licences with such flying colours!
Seven of the pilots who completed the training were Tanzanian, and one was Kenyan. When interviewed, each of the men said it was a childhood dream to become a pilot and we are very proud to have been able to assist in making that dream come true.
If you are interested in working with fastjet please visit the careers section on our website Careers - Corporate - fastjet where we regularly post new job vacancies as and when they become available.
8 New fastjet Pilots Pass their Professional Pilots Training - Blog - fastjet

 
[h=2]FastJet To Raise GBP10 Million, Including Backing From Stelios[/h]Thu, 10th Apr 2014 15:07


LONDON (Alliance News) - Low-cost African airline FastJet PLC said Thursday that it is planning to raise at least GBP10 million in a share placing, including an investment from billionaire Stelios Haji-Ioannou's easyGroup Holdings Ltd.



easyGroup IP Licensing Ltd has agreed to invest GBP1 million in the placing subject to a minimum total placing of GBP10 million. easyGroup Holdings has also agreed to receive shares worth GBP1.5 million in lieu of revenues of GBP4.3 million over the next eight years from a brand licence agreement.
Fastjet said that it had continued to trade in line with expectations, and expects to report revenue of around USD53 million for 2013. It expects to post an operating pretax loss of around USD47 million, including exceptional items.
Fastjet was founded when Rubicon Diversified Investments bought Fly540, which flies in Kenya, Ghana and Angola, from Lohnro in a reverse takeover in 2012. Haji-Ioannou got a stake as part of a deal that included licensing the FastJet name.
Since then FastJet has been shrinking and restructuring the Fly540 operations in an attempt to make them profitable, while focusing on growing its own-brand operations. Those own-brand operations are mainly within Tanzania, but the airline has recently launched some cross-border routes including to Johannesburg in South Africa and Lusaka in Zambia.
It expects further impairments in relation to its Fly 540 business to be no more than USD25 million for the year. The restructuring of the Fly540 operations is well advanced, Fastjet said, and will be completed shortly.
Shares in Fastjet were trading down 5.6% at 1.70 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; Hanassallnews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
FastJet To Raise GBP10 Million, Including Backing From Stelios - Finance News - London South East
 
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YA WAKENYA





YA KENYA PIA







Delivery of the ATR 72-600 is scheduled for 2014.​
 
[h=2]Fastjet raises a further 11 million UK Pounds in capital[/h]Posted by Prof. Dr. Wolfgang H. Thome in Uncategorized. Leave a Comment
FASTJET ANNOUNCEMENT IN LONDON REVEALS NEED TO RAISE MORE CAPITAL
(Posted 12th April 2014)

Fastjet yesterday, in line with regulatory requirements for listed companies, issued the following statement in London, confirming the airline has raised a further 11 million UK Pounds to finance infrastructure developments worth 3 million UK Pounds, the establishment of new bases to the tune of 2 million UK Pounds – referring to plans to launch Fastjet operations in Zambia and South Africa, the latter inexplicably still in the works, inject an additional 3 million UK Pounds into their hitherto loss making Tanzanian operation and keep some 3 million UK Pounds in reserve for what the airline calls 'general working capital', arguably referring to overhead costs.
The full statement is shown below:
Start quote:
fastjet plc – Placing, Open Offer, EFF, Trading & Brand Licence
11 April 2014 – Fastjet Plc. (AIM:FJET) is pleased to announce a placing with institutional and other investors to raise gross proceeds of £11 million, an amendment to the terms of the Company's brand licence with easyGroup Holdings Ltd. ("easyGroup"), an open offer to shareholders of up to £4 million, an update on current trading, and the termination of the Company's Equity Finance Facility (‘EFF') with Darwin Strategic Limited.
Placing
The placing involves the issue of 687,500,000 new Ordinary Shares (the "Placing Shares"), amounting to approximately 112% of the existing issued share capital of the Company, at a price of 1.6 pence (the "Issue Price") to raise gross proceeds of £11 million. The Issue Price represents a discount of 11.1 per cent. to the closing middle market price of 1.8 pence per Ordinary Shares on 9 April 2014.
Directors & Senior Management Participation
Certain Directors, specifically Mr. Edward Winter and Mr. Angus Saunders, and senior managers of the Company have subscribed in the Placing for Placing Shares with an aggregate value of approximately £1 million, which constitutes both dealing by individuals concerned and in so far as these Directors are concerned a related party transaction for the purposes of the AIM Rules, further details of which are set out in the section headed ‘Directors Dealing & Related Party Transaction' below.
easyGroup
The Company has a Brand Licence agreement with easyGroup for the use of the fastjet brand in return for a royalty payment. easyGroup IP Licensing Limited has agreed to invest £1 million in the Placing. On the closing of the Placing easyGroup has also agreed with the Company to terminate the management consultancy fee under the Brand Licence in exchange for the receipt of 94,287,227 Ordinary Shares in the Company (the "easyGroup Shares") with a value of approximately £1.51 million at the Issue Price, resulting in the cessation of previously agreed cash payments equating to approximately £4.3 million over the next eight years.
Termination of Darwin EFF
The Company announces that is has terminated the Equity Financing Facility (‘EFF') with Darwin Strategic Ltd. which was originally announced on 13th June 2013 and further extended on 12th March 2014. This facility has served the Company well over the past year, providing capital to allow the Company to successfully reach its current position from where it can now expand, but is no longer required to finance further growth.
Current Trading and Prospects
The Company expects to publish its financial statements for the year ended 31 December 2013 in June. The Company had continued to trade in line with management expectations since 30 June 2013. The Company expects, for the full group including the Fly540 operations,revenue for the year ended 31 December 2013 to be approximately $53 million and the operating loss before tax and exceptional items is expected to be approximately $47 million. Further impairments in relation to the Fly 540 businesses during the remainder of the year are not expected to exceed $25 million. The restructuring of the Fly540 operations is very well advanced and will be completed shortly. During 2013 less than $650,000 of fastjet Plc cash was utilised in the legacy Fly540 operations. The proceeds of the fundraising will provide the Company with the necessary capital to expand its low cost airline operation in Africa as outlined in Background to the Fundraising
Open Offer
In order to provide Shareholders an opportunity to participate in an issue of new Ordinary Shares on equivalent terms to the Placing an open offer at the Issue Price of up to 250,000,000 shares raising up to £4 million is intended to be made to qualifying shareholders. A circular to shareholders setting out full details of the Open Offer and the actions to be taken by shareholders in respect of the Open Offer is expected to be published on or around 16 April 2014. The Open Offer is not being underwritten and is not conditional on the Placing. The open offer Circular will be published on the Company's website,www.fastjet.com, and posted to shareholders in due course and a further announcement made at that time.
Ed Winter, CEO and Interim Chairman of fastjet said:
· "I am pleased that this fund-raising has been completed so successfully. It is clear that the low cost airline model is now established in Tanzania, with customer acceptance developing rapidly. Customer feedback is extremely positive, and ancillary revenue streams continue to see steady improvement.
· We now look to move to the next phase of fastjet's expansion with further international routes, additional aircraft and more bases. Securing the funding for management to fulfil that plan is a great step forward.
· We appreciate the support of Sir Stelios Haji-Iannou and easyGroup, demonstrated both in their subscription to the Placing and their agreement to terminate the Management Fee in return for shares. I welcome the fact that the fastjet management team has shown its confidence in the business by joining me in making a very substantial personal cash investment in our company. The Darwin Strategic EFF that we have used for much of our funding to date, vital in bringing us to this point, has been a great partnership.
· In response to many comments from shareholders over past months, I am also pleased that we have been able to offer all shareholders the opportunity of participating in this fund-raising on the same terms as the institutional placing.
· I now look forward to leading the Company through the next phase of its development, to become the leading pan-African low-cost airline."
Sir Stelios Haji-Iannou of easyGroup said:
· "I am delighted that Ed Winter and his team at fastjet managed to get such a successful backing from the City institutions, raising the necessary funds to get the company to the next level. I am happy to have also contributed myself in this effort. I looking forward to seeing the company offer even more people in Africa the same low fares that we all take for granted now in Europe."
Background to the Fundraising
· fastjet plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012 using a fleet of three Airbus A319 aircraft. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at low prices. fastjet's long-term strategy is to become the first low-cost, pan-African airline. fastjet plc is also the holding company of Fly540, which operates in Kenya, Ghana and Angola.
· The fastjet low cost airline was launched in Tanzania on 29 November 2012. fastjet operations in Tanzania carried a total of 31,500 passengers in February 2014 and achieved a load factor of 76 per cent. The average yield per passenger was $82, compared to $47 in February 2013.
· fastjet currently has three domestic routes operating in Tanzania linking Dar es Salaam with Mwanza, Kilimanjaro and Mbeya and two international routes to Johannesburg and Lusaka. During 2013, management successfully secured fastjet's first international route rights and fastjet's first international route, Dar es Salaam to Johannesburg, commenced operations on 18 October 2013 and its second international route from Dar es Salaam to Lusaka, Zambia commenced flights in February 2014. Services between Lusaka's Kenneth Kaunda International Airport and Dar es Salaam's Julius Nyerere International Airport operate twice a week with a third flight scheduled from 15 April 2014. fastjet expects to increase the frequency of flights on this route in line with consumer demand, as more people make use of its safe, affordable and on-time service.
· 38 per cent of fastjet's passengers surveyed six months after the commencement of the fastjet operation were first time fliers and in that period 34,000 seats were sold to those booking early at the base-price of only USD$20, so establishing the low cost model in Tanzania. In June 2013 over 1,200 seats were sold for USD$20 each and, importantly, over 300 seats were sold for USD$200 each or higher. It is clear that the low-cost airline model works in Tanzania and is effective in stimulating and growing the market with customer acceptance of the model developing rapidly. The booking window (days between booking and flight) has increased significantly with customers quickly adopting the "book early for cheapest seats" model. Due to the chronic unreliability of air services prior to the arrival of fastjet, the majority of passengers previously booked tickets on the intended day of travel once they were assured that the flight would take place.
· Feedback on customer satisfaction during the period has been extremely positive, with 98 per cent of fastjet customers surveyed saying that they would fly with fastjet again and 100 per cent saying that they would recommend fastjet to friends and business colleagues.
· In order to offset lower rates of commercial activity on the Internet and low credit card usage in Africa, management continues to develop cutting-edge customer communication and facilitation tools. These include extensive use of social media such as Facebook and Twitter. Mobile phone penetration throughout Africa is very high and the fastjet website is optimised for use on smart phones. fastjet customers increasingly use mobile phone payment methods such as M-Pesa and Tigo to pay for seats. In December 2013, 19 per cent of ticket revenue was paid through mobile money.
· Ancillary revenue streams, predominantly from baggage and flight change fees, continue to see steady improvement, increasing from USD$2.75 per passenger in January 2013 to USD$6.95 per passenger in December 2013. Additional services such as in-flight retail, allocated seating, hotel and travel insurance services will be introduced with the objective that ancillary revenue will continue to rise, both in absolute terms and as a percentage of total revenue.
· fastjet's Tanzanian operation, which comprises a well-recognised brand name and both domestic and international routes, means that it is now well placed to further develop its existing Tanzanian operations. Management plans a controlled expansion, with all three aircraft fully optimised within the schedule by Q3 2014 with further international routes including routes to Kenya introduced by Q3 2014. This will enable fixed overhead costs to be spread over a larger operation, a key factor in turning the fastjet operation profitable. fastjet plans to add additional aircraft in 2015. It also plans to establish bases in Zambia, Kenya and South Africa. The Group is targeting to have 4 fastjet operational bases across Africa by 2016 and by 2018 to operate 24 aircraft, carrying approximately 6 million passengers per year with targeted revenues in excess of $500m.
Future Initiatives
· Based on the Company's experience in Tanzania and Zambia it has confidence it can fulfil the strategy of becoming the pan African Low Cost Airline of choice. The low cost model has stimulated the Tanzanian market in the same way other such markets in other areas of the world were stimulated by its introduction. The Tanzanian consumer has embraced the brand and model with incredible speed and enthusiasm. Lessons learned whilst establishing the current operations will be deployed to our advantage during our expansion into other markets.
· In some countries, developing the fastjet brand will involve direct investment (as is the case in Tanzania), while in other countries it is may be via a licencing agreement. Direct investment is most likely in larger, more mature markets, such as South Africa, Zambia and Kenya, with licencing agreements more likely in smaller, less well-developed markets and those with a difficult investment environment such as Nigeria. fastjet plans to undertake direct investment in a planned and orderly way, such that a material portion of the required investment can be internally funded.
fastjet Airline Management Services
· For countries where fastjet considers a licencing agreement to be the appropriate route to establishing the brand, we have developed an Airline Management Services (AMS) concept. AMS facilitates the delivery of core elements of the fastjet service, such as, safety, brand, revenue management and sales and distribution channels, while other investors provide the capital required to fund the aircraft and start-up costs. In addition, fastjet AMS would offer other optional commercial, operational and management services. Discussions are on-going in a number of African countries, including Nigeria, with a view to launching airlines in this way under the fastjet brand.
Zambia
· fastjet plc is in discussions with the Zambian government with the intention of creating a fastjet operation based in Lusaka. The Board see the business and political environment in Zambia as very progressive and fastjet's discussions to date with the Zambian government, Tourist Board and other stakeholders have been very positive. The Company believes the establishment of a fastjet operation would bring benefits to the country and Zambian people through the expansion of trade and tourism, as well as bringing safety and reliability improvements to the Zambian aviation industry. The new operation, whilst being distributed and marketed as a part of the pan-African fastjet network, would be a Zambian registered company in which fastjet plc will have a substantial stake. fastjet flights linking Lusaka with Dar es Salaam have proved an instant success with customers previously enduring 28 hour torturous road journeys.
Ancillary Revenues
· On 28 February 2014 the Company signed two agreements with partners in the travel industry, marking the launch of partner ancillary products on fastjet.com. The first, with Rentalcars.com parent company, TravelJigsaw Ltd, will offer low-cost car hire in Africa through fastjet.com, and the second will deliver competitively priced online parking services in South Africa in partnership with Looking4Parking.com (L4P). fastjet expect to announce further ancillary revenue opportunities in the near future.
Use of Proceeds
The Placing has raised gross proceeds of £11 million. The Directors intend that the net proceeds of the placing will be used:
o as to approximately £3 million for Central services infrastructure;
o as to approximately £2 million for new base costs;
o as to approximately £3 million Tanzania working capital; and
o as to the balance for general working capital.
Intended Open Offer
· In addition to the Placing, it is intended that a total of up to 250,000,000 new Ordinary Shares at the same price of 1.6 pence per share as the Placing shares will be made available to qualifying Shareholders pursuant to an Open Offer to raise up to £4 million before expenses.
· Not all Shareholders would be qualifying Shareholders. In particular, Shareholders who are located in, or are citizens of, or have a registered office in restricted jurisdictions and certain other overseas jurisdictions would not qualify to participate in the Open Offer. Details of the definitive terms of the Open Offer, including the offer timetable and record date, will be set out in the Circular when it is published.
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Fastjet raises a further 11 million UK Pounds in capital | Wolfgang H. Thome's Blog
 
[h=1]JAMENI GEZA ULOLE SI URINGE NA VYA KWENU MGENI KESHO AWEZA FUNGANYA VIRAGO AKAONDOKA NA VYA KWAKE.HII NI AIR TANZANIA.NDEGE YA KWAKO BONA WAITOROKA KAKA
Tanzania: Eight-Plane Deal for ATCL Nears Fruition[/h] By Christopher Majaliwa, 23 December 2013 NEGOTIATIONS between Tanzania and an investor from Oman to shunt in eight new planes for Air Tanzania are well underway and promising, the airline's Acting Managing Director and CEO Captain Milton Lazaro told the 'Daily News'.

If the talks will bear the expected fruits, the national flag carrier will be put in a better position unlike at present when it possesses only a single aircraft, which operates within and outside the country.
Recently, Air Tanzania launched direct flights to Bujumbura, Burundi, as part of efforts to reposition itself in the competitive aviation industry.
The move, however, was met with criticism from a section of the public, which suggested that it was wise for the company to first secure more planes before embarking on such international trips.
In August, this year, the Chairman of Oman-based firm, Alhayat Development and Investment Company, Sheikh Salim Al Harthy, toured the Julius Nyerere International Airport (JNIA) and promised that his company would bring in four Embraer175 and four Bombardiers, should the talks become fruitful.
In an interview with this newspaper, the ATCL boss said that Tanzania was still in talks with the Omani firm on the joint venture, which would see the duo joining hands in the aviation industry.
Captain Lazaro enthused that there was every sign that the ongoing talks would end positively -- and as soon as they reach a consensus, they would sign the deal right away.
"Talks are in progress. What I can say is that they have shown interest and we believe that at the end of the day we are going to succeed," he said, adding that they have involved all parties concerned.
The ATCL head reported that he would be in a position to describe the stage that has been reached concerning the investment in two weeks' time.
"In two weeks, I mean by January 10, I will tell you the point we have reached in these talks, he emphasised. Transport Minister Harrison Mwakyembe shared Captain Lazaro's observation, saying it was true that talks were underway on the joint venture modality.
"You should have checked with Air Tanzania officials first unless they have failed to comment; then I would have chipped in. But in brief, it is true that negotiations are going well as you have been informed by them," said Dr Mwakyembe.
The Oman firm's willingness to invest in the industry came following a visit to Oman by President Jakaya Kikwete, who asked investors to come and explore the wider range of opportunities available in Tanzania.
In the initial talks, the firm's chairman, Sheikh Al Harthy, was quoted saying that his company would invest 100 million US dollars, to increase gradually, in addition to training 10 youths in aircraft maintenance engineering.
He had also promised that the company would erect a 25-storey building in Dar es Salaam Central Business District in a joint-venture with ATCL.

 

[h=1]FastJet Raises $25 Million in Africa Push as Stelios Lifts Stake[/h]By Kari Lundgren and Chris Jasper - Apr 10, 2014
FastJet Plc (FJET) will raise 15 million pounds ($25 million) from share sales to help fund its African expansion, with EasyJet Plc (EZJ)founder Stelios Haji-Ioannou injecting cash in a deal giving him 10 percent of the business.
The London-based company has placed 687.5 million shares at 1.6 pence apiece, an 11 percent discount, raising 11 million pounds, and is offering 250 million shares to existing investors for a further 4 million pounds, it said today in a statement.
Chief Executive Officer Ed Winter will inject 500,000 pounds via the placing, with Chief Financial Officer Angus Saunders and other senior managers also participating. Stelios, as the EasyGroup head prefers to be known, will invest 1 million pounds and terminate a consultancy contract valued at 4.3 million pounds over eight years in exchange for 94.3 million shares valued at about 1.51 million pounds, FastJet said.
"It's been tough -- Africa is tough -- but we've got there now," Winter said in an interview. "We've established the low-cost model in Tanzania, customer acceptance is developing rapidly and we're stimulating new markets. And the roll-out of our network is gaining real momentum."
FastJet, which has been flying for 16 months, plans to to establish a base in Lusaka in Zambia before the end of this year, adding to its sole hub in Dar es Salaam, Tanzania. Planes may also be based in Johannesburg, the carrier's initial international destination, which it began serving in October.
[h=2]Loss Estimate[/h]The company expects to post an operating loss of $53 million for the year ended Dec. 31, before tax and an impairment charge of as much as $25 million from the Fly540 airline operation on which it was based. Sales totaled about $47 million, with final numbers to be posted by the end of June.
Winter said FastJet is exploring options to add to its fleet of three leased Airbus Group NV (AIR) A319 short-haul planes to provide capacity at new bases and more seats in Dar es Salaam.
FastJet is also negotiating a commercial agreement with Dubai-based Emirates which will allow its tickets to be sold through the larger carrier's booking system, providing onward flights from the Gulf to destinations such as Kilimanjaro. It's possible terms might be reached in a month or two, Winter said.
Low-cost carriers don't typically link up with network airlines and Winter said the "hybrid" deal won't be structured as a full code-share to avoid the complexity and cost of services such as baggage transfers at African airports.
A circular to investors providing details of the share offer will be published on or around April 16. The stock fell 6.9 percent today, giving a market value of 10.3 million pounds.
FastJet has terminated an equity financing facility with Darwin Strategic Ltd. that provided initial growth capital.
To contact the reporters on this story: Kari Lundgren in London at klundgren2@bloomberg.net; Christopher Jasper in London atcjasper@bloomberg.net
To contact the editors responsible for this story: Benedikt Kammel at bkammel@bloomberg.net Christopher Jasper


 
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