Kibanga Ampiga Mkoloni
JF-Expert Member
- Aug 9, 2007
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Low cost African airline FastJet has confirmed it will have its first airbase in Tanzania.
The airline will commence flying in November with seats going on sale online a few weeks earlier. Fares will be available from $20 one-way excluding taxes and charges.
The lease for FastJet's first Airbus A319 aircraft has been signed with lessor BBAM and will arrive in Dar es Salaam next month. Recruitment for crew and ground staff is already well advanced, according to a statement released by the company.
FastJet Chief Executive Ed Winter said: "Our initial focus will be on East Africa with the airline's first base at Dar es Salaam, Tanzania, where the A319 aircraft has already been approved by the Tanzania Civil Aviation Authority.
This will be followed by a second base in Nairobi, Kenya, once the A319 is approved there. We look forward to bringing a great, reliable and affordable service to the people of East Africa."
Once established in East Africa, Fast Jet revealed it plans to launch in Accra, Ghana and Luanda Angola
Source: FastJet confirms first airbase in Tanzania
Update from analyst:
ATCL, which resumed flights recently using Boeing 737-200, an older version of B737, is offering competitive fare of around 200,000/- return for Dar-Mwanza. However, industry sources have played down the move that they have described as Fastjet's short-term strategy to capture the market share with no much effect in the market, in the long run.
The airline analyst, who preferred anonymity, said anything below 150,000/- return fare is unrealistic fare since there is no gain on such prices as aviation operational costs are very high. "It will affect other airlines in short-term as passengers will be pulled by the lower price, but not in a long run they'll return as quality of service matters most," he said.
He added: "Current prices at the market are very fair, despite being competitive." The analyst said the prices are unrealistic as flying to and from Kilimanjaro an aircraft like B737 or A319 burns 6,000 litres of fuel, equivalent of 6,000 US dollars (over 9.6m/-) without taking into consideration salaries, landing fees, maintenance and other running costs.
"The FastJet fare will only be sustainable if the airline receives subsidies from elsewhere," he said. "Otherwise it's just a market capturing gimmick in a short life span." The Precision Air Chairman, Mr Michael Shirima, said the airline always puts passengers' comfort and safety before anything and that is why they ordered the new state-of-the-art aircraft.
