John Mashaka
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My best guess is that, maybe the country is trying to revive its airline.....
Why should Tanzania replicate the protectionism attitude on Kenya's airlines
Why should Tanzania replicate the protectionism attitude on Kenya's airlines
- Thread starter Geza Ulole
- Start date
Geza Ulole
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But Mashaka, what is the essence of a country reviving her airline and ending up making flying not affordable to many? Can the benefits of offering many travelers affordable access to air services be superseded by protectionism that is not affordable and in the name of reviving ailing airline (for this case KQ that has license to fly to other countries' airports)? Who pays for this wastage of economic opportunities that come across easy movement of people? And how sustainable can that be? How about consumer's protection rights that insists on affordability?
Geza Ulole
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9th February 13
FastJet at dilemma as partner demands further $7m
Aisia Rweyemamu
The future of the low-carrier airline, FastJet, is at the crossroads following its simmering wrangle between the UK-based aviation company and Kenyas Fly 540 -- a long-standing bill of $7m/- (Sh11.2 billion).
But as FastJet moved quickly to assure its customers and the general public that its operations wouldnt be halted, its partner from Kenya, Fly 540 insisted that it has withdrawn the operation licence effective Wednesday pending the more pays from the UK based airline.
On Wednesday this week, Fly 540 authorities announced that the firm would withdraw the leniences it had granted to FastJet Africa to operate in Tanzania, Angola and Ghana due to the unpaid fees for the purchase of its interest in Fly 540.
The legal dispute between the two air lines -- FastJet and Fly 540 -- has all ready been committed to the Tanzania Civil Aviation Authority of which it received the copies from these firms.
Details of the dispute emerged a few days ago after Fly 540 said it was lodging legal action over a $6.78 million debt which FastJet is alleged to have failed to settled
However, FastJet has since denied the allegation.
Briefing reporters in Dar es Salaam yesterday, the FastJet Commercial Manager, Jean Uku said in response to recent reports by David Lenigas, Chairman of FastJet and Chairman of Fly 540 Aviation Limited confirmed that there was no valid brand or management agreement between these two airlines, nor any other Fly 540 association Companies in Africa.
According to FastJet, the Board of Directors of Fly540 Kenya has never met to even consider this issue, and this has since been confirmed by other directors.
It has been widely recognized by the public of Tanzania that this is nothing but an attempt to undermine our business credibility and reputation. We have at this time received much welcome public support, Jean elaborated
Uku told reporters that FastJet had already paid 49 percent of LonRhos shares and that it would settle the rest soon.
She insisted that the company would not close down, and that they are not going to let anyone sabotage their business. She added that the fate of the commercial manager would be made public soon.
During the first three months of operation in Tanzania, the low cost carrier transported about 30,000 passengers, which is 70 percent occupancy per seat; and 40 percent of these passengers paid a low fair of $20, according to the companys Chief Executive Officer, Ed Winter
She added that Fast Jet is operating on time with no cancelled or rescheduled of flight due to technical problem, and many of their flight arriving early than it scheduled.
David Lenigas, the FastJet Chairman, was quoted as saying that FastJet had paid Don Smith and his partners well in excess of US$6m/- for their interest in Fly540 for their interest and associated brands but are now aggressively seeking to have their purchase contract enforced.
In June, 2012, FastJets parent company, a UK-based investment firm, Rubicon, paid $86m to secure 49% of Lonrhos aviation business Fly540. Following the deal, FastJet became the holding company of Fly540, allowing it to use Fly540s existing infrastructure, hubs and airline licences in Kenya, Tanzania, Angola and Ghana to operate. The low carrier airline deployed two Airbus A319s it has leased from Volito Aviation to begin its operations in Africa.
A year after its launch, FastJet expects to have 15 aircraft operating in the continent, five of which will be Airbus A319s. Another projection that FastJet is banking on is doubling Fly540s current record of carrying 750,000 passengers in its first year of operations.
THE GUARDIAN
FastJet at dilemma as partner demands further $7m
FastJet at dilemma as partner demands further $7m
Aisia Rweyemamu
The future of the low-carrier airline, FastJet, is at the crossroads following its simmering wrangle between the UK-based aviation company and Kenyas Fly 540 -- a long-standing bill of $7m/- (Sh11.2 billion).
But as FastJet moved quickly to assure its customers and the general public that its operations wouldnt be halted, its partner from Kenya, Fly 540 insisted that it has withdrawn the operation licence effective Wednesday pending the more pays from the UK based airline.
On Wednesday this week, Fly 540 authorities announced that the firm would withdraw the leniences it had granted to FastJet Africa to operate in Tanzania, Angola and Ghana due to the unpaid fees for the purchase of its interest in Fly 540.
The legal dispute between the two air lines -- FastJet and Fly 540 -- has all ready been committed to the Tanzania Civil Aviation Authority of which it received the copies from these firms.
Details of the dispute emerged a few days ago after Fly 540 said it was lodging legal action over a $6.78 million debt which FastJet is alleged to have failed to settled
However, FastJet has since denied the allegation.
Briefing reporters in Dar es Salaam yesterday, the FastJet Commercial Manager, Jean Uku said in response to recent reports by David Lenigas, Chairman of FastJet and Chairman of Fly 540 Aviation Limited confirmed that there was no valid brand or management agreement between these two airlines, nor any other Fly 540 association Companies in Africa.
According to FastJet, the Board of Directors of Fly540 Kenya has never met to even consider this issue, and this has since been confirmed by other directors.
It has been widely recognized by the public of Tanzania that this is nothing but an attempt to undermine our business credibility and reputation. We have at this time received much welcome public support, Jean elaborated
Uku told reporters that FastJet had already paid 49 percent of LonRhos shares and that it would settle the rest soon.
She insisted that the company would not close down, and that they are not going to let anyone sabotage their business. She added that the fate of the commercial manager would be made public soon.
During the first three months of operation in Tanzania, the low cost carrier transported about 30,000 passengers, which is 70 percent occupancy per seat; and 40 percent of these passengers paid a low fair of $20, according to the companys Chief Executive Officer, Ed Winter
She added that Fast Jet is operating on time with no cancelled or rescheduled of flight due to technical problem, and many of their flight arriving early than it scheduled.
David Lenigas, the FastJet Chairman, was quoted as saying that FastJet had paid Don Smith and his partners well in excess of US$6m/- for their interest in Fly540 for their interest and associated brands but are now aggressively seeking to have their purchase contract enforced.
In June, 2012, FastJets parent company, a UK-based investment firm, Rubicon, paid $86m to secure 49% of Lonrhos aviation business Fly540. Following the deal, FastJet became the holding company of Fly540, allowing it to use Fly540s existing infrastructure, hubs and airline licences in Kenya, Tanzania, Angola and Ghana to operate. The low carrier airline deployed two Airbus A319s it has leased from Volito Aviation to begin its operations in Africa.
A year after its launch, FastJet expects to have 15 aircraft operating in the continent, five of which will be Airbus A319s. Another projection that FastJet is banking on is doubling Fly540s current record of carrying 750,000 passengers in its first year of operations.
THE GUARDIAN
FastJet at dilemma as partner demands further $7m
Geza Ulole
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FastJet Sues African Airline Ally Over Kenyan Market Access
By Robert Wall on March 07, 2013
FastJet Sues African Airline Ally Over Kenyan Market Access - Businessweek
FastJet Plc (FJET), seeking to become the first pan-African discount airline, is suing the chief executive officer of its sister carrier in the U.K. courts over access to the licenses it needs to expand flights into Kenya.
FastJet, which currently operates only in Tanzania, filed the suit against Donald Smith, head and partial owner of Five Forty Aviation Ltd. That's after Smith last month withdrew the right to use the Fly540 brand, saying he was owed $7 million in unpaid bills and hadn't received required safety information.
London-based FastJet, which began commercial flights Nov. 27, combined with Five Forty Aviation of Nairobi in June to gain access rights in Ghana, Kenya, Tanzania and Angola. The all- share deal was brokered by mining group Lonrho Plc (LAF), which now owns 56 percent of FastJet, and backed by Stelios Haji-Ionnou, founder of EasyJet Plc (EZJ), Europe's No. 2 discount airline.
"FastJet is adamant that Mr Smith has been paid his full consideration and we will now ask the High Court of Justice to rule on this," Chairman David Lenigas said today. "We sincerely hope that the process will be dealt with speedily so that the unnecessary and apparently contrived confusion surrounding control of the Kenyan operations can finally be put to rest."
Obligations Unfulfilled
While FastJet says it controls 99 percent of Fly540 Kenya, Smith contends that it reneged on the deal and that no ownership change took place, leaving him with a near 51 percent stake.
"Not all obligations of the deal have been fulfilled," he said in an e-mail. "Aspects such as the payment of intra-company debt as well as the issuance of my shares remain outstanding."
FastJet said yesterday it will add two more routes to its network, lifting capacity by 50 percent, with flights from the Tanzanian tourist hub of Kilimanjaro to the island of Zanzibar and to Mwanza on Lake Victoria, starting March 18. The services will be operated by its fleet of three leased Airbus SAS A319s.
The airline filled 81 percent of seats last month, carrying 26,387 people on its initial two routes from Dar es Salaam to Mwanza and Kilimanjaro.
FastJet rose as much as 7.9 percent before closing 5.9 percent higher at 2.68 pence in London, valuing the company at 55.5 million pounds ($83 million). The stock has declined 30 percent this year.
To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
FastJet Sues African Airline Ally Over Kenyan Market Access - Businessweek
By Robert Wall on March 07, 2013
FastJet Sues African Airline Ally Over Kenyan Market Access - Businessweek
FastJet Plc (FJET), seeking to become the first pan-African discount airline, is suing the chief executive officer of its sister carrier in the U.K. courts over access to the licenses it needs to expand flights into Kenya.
FastJet, which currently operates only in Tanzania, filed the suit against Donald Smith, head and partial owner of Five Forty Aviation Ltd. That's after Smith last month withdrew the right to use the Fly540 brand, saying he was owed $7 million in unpaid bills and hadn't received required safety information.
London-based FastJet, which began commercial flights Nov. 27, combined with Five Forty Aviation of Nairobi in June to gain access rights in Ghana, Kenya, Tanzania and Angola. The all- share deal was brokered by mining group Lonrho Plc (LAF), which now owns 56 percent of FastJet, and backed by Stelios Haji-Ionnou, founder of EasyJet Plc (EZJ), Europe's No. 2 discount airline.
"FastJet is adamant that Mr Smith has been paid his full consideration and we will now ask the High Court of Justice to rule on this," Chairman David Lenigas said today. "We sincerely hope that the process will be dealt with speedily so that the unnecessary and apparently contrived confusion surrounding control of the Kenyan operations can finally be put to rest."
Obligations Unfulfilled
While FastJet says it controls 99 percent of Fly540 Kenya, Smith contends that it reneged on the deal and that no ownership change took place, leaving him with a near 51 percent stake.
"Not all obligations of the deal have been fulfilled," he said in an e-mail. "Aspects such as the payment of intra-company debt as well as the issuance of my shares remain outstanding."
FastJet said yesterday it will add two more routes to its network, lifting capacity by 50 percent, with flights from the Tanzanian tourist hub of Kilimanjaro to the island of Zanzibar and to Mwanza on Lake Victoria, starting March 18. The services will be operated by its fleet of three leased Airbus SAS A319s.
The airline filled 81 percent of seats last month, carrying 26,387 people on its initial two routes from Dar es Salaam to Mwanza and Kilimanjaro.
FastJet rose as much as 7.9 percent before closing 5.9 percent higher at 2.68 pence in London, valuing the company at 55.5 million pounds ($83 million). The stock has declined 30 percent this year.
To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
FastJet Sues African Airline Ally Over Kenyan Market Access - Businessweek
Geza Ulole
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[TD="colspan: 2"] Fastjet secures funding to expand in Africa
[/TD]
[TD="colspan: 2"] Fri 08 Mar 2013 [/TD]
[TD="colspan: 2"]To further working capital and plan for its expansion in Africa.
The £15.68m zero coupon convertible securities will be provided by Bergen Global Opportunity Fund, and will mitigate the effect of potential dilution to existing shareholders.
fastJet's Chief Executive Officer, Ed Winter, said: "This agreement with Bergen gives us access to very significant funding over the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa.
"The investment structure potentially reduces the dilution to existing shareholders and gives us the opportunity to restructure parts of the business and adapt our business model in the light of our experience so far in Africa.
"Securing this funding will assist us in our core objective of making fastJet the first pan-African low-cost airline and meeting the growing demand for air travel across the continent."
The securities will be issued in six tranches, the first of which will have the nominal value of around £2.56m and a term of 18 months. The remaining five will have a value of £2.625m. The subsequent convertible securities will have a term ending 15 months after the date of issuance of the second convertible security.
The company will have the right to repurchase the securities for cash at their nominal value (and without a fee or penalty) within a certain redemption period, it said.
fastJet will also issue Bergen with 44m ordinary shares of £0.01 at par, which will be admitted for trading on or around March 13th.
Bergen may be required to make a further payment to fastJet once all of the obligations of the agreement have been finally met and no security remains outstanding, depending on the price of shares at the time.
fastJet's share price rose 7.48% to 2.88p in opening trade.
NR
ShareCast - News you can use [/TD]
Geza Ulole
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sasa kama Wakenya wana-act kama Baboons hawajui rule of law and fair trade, tufanye nini? hujiulizi mbona kila siku ni Kenya tuu...mara Kenya and Uganda sugar row mara Kenya and Zambia sugar row mara Kenya and Tanzania grain importation row!
Kiranga
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Ndiyo maana nikasema itatumaliza. Protectionism coupled with counter protectionism kills trade.
Geza Ulole
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their mentality has to change! cause they think the EA block is for them to dump their goods while protecting their market
Kiranga
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Yes, that is the right focus. Not to imitate them per "ukimwaga ugali, namwaga mboga".
Tutalala njaa wote.
Geza Ulole
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Published on ATWOnline (http://atwonline.com)
Home > Fastjet to meet with 1time liquidator
[h=1]Fastjet to meet with 1time liquidator[/h]By lblachly
Created 2013-03-13 16:37
By Victoria Moores [1]
[h=6]
[/h][h=6]Fastjet Airbus A319. Courtesy, Fastjet[/h]Fastjet has secured another £15.7 million ($23.4 million) in funding and lined up some potential partners, which it hopes will help firm up its planned acquisition of South African budget carrier 1time.
This week, Fastjet chairman David Lenigas and CEO Ed Winter are traveling to South Africa to meet with 1times liquidators and hopefully firm up the provisional deal [2] that was struck late last year.
Fastjet has been working with a number of South African-based entities in recent weeks and believes it has now found a solution to secure acceptable partnership arrangements, which ensure that any change of control of 1time would comply with current South African laws on foreign ownership. Fastjet is hopeful that a deal could be finalized and feels confident that an acceptable solution can now be put to the liquidator so a meeting of creditors might be called, the budget carrier said in a statement.
A Fastjet spokeswoman told ATW the liquidator recently extended the deadline for a potential 1time deal until October. Lenigas claims fares have skyrocketed since Johannesburg-based 1time went into liquidation in November, with many aircraft operating full on key Cape Town and Durban routes.
We will also be seeking high-level meetings with the aviation authorities to allow Fly540 Tanzania to operate daily services from Dar es Salaam in Tanzania to Johannesburg, Lenigas said. Fastjets Tanzanian operation is also just about to launch daily flights between Kilimanjaro and Zanzibar and Kilimanjaro and Mwanza.
Building on a £4 million [3] liquidity boost last month, Fastjet has just secured a £15.7 million in funding from New York-based Bergen Global Opportunity Fund. It will use the additional cash to support its working capital and expansion plans.
This agreement with Bergen gives us access to very significant funding over the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa, Winter said.
Media
Fastjet-A319-courtesy.jpg [4]
Publishing InformationSort Order:
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Publish Date:
March 14, 2013
Fastjet to meet with 1time liquidator
Home > Fastjet to meet with 1time liquidator
[h=1]Fastjet to meet with 1time liquidator[/h]By lblachly
Created 2013-03-13 16:37
By Victoria Moores [1]
[h=6]
This week, Fastjet chairman David Lenigas and CEO Ed Winter are traveling to South Africa to meet with 1times liquidators and hopefully firm up the provisional deal [2] that was struck late last year.
Fastjet has been working with a number of South African-based entities in recent weeks and believes it has now found a solution to secure acceptable partnership arrangements, which ensure that any change of control of 1time would comply with current South African laws on foreign ownership. Fastjet is hopeful that a deal could be finalized and feels confident that an acceptable solution can now be put to the liquidator so a meeting of creditors might be called, the budget carrier said in a statement.
A Fastjet spokeswoman told ATW the liquidator recently extended the deadline for a potential 1time deal until October. Lenigas claims fares have skyrocketed since Johannesburg-based 1time went into liquidation in November, with many aircraft operating full on key Cape Town and Durban routes.
We will also be seeking high-level meetings with the aviation authorities to allow Fly540 Tanzania to operate daily services from Dar es Salaam in Tanzania to Johannesburg, Lenigas said. Fastjets Tanzanian operation is also just about to launch daily flights between Kilimanjaro and Zanzibar and Kilimanjaro and Mwanza.
Building on a £4 million [3] liquidity boost last month, Fastjet has just secured a £15.7 million in funding from New York-based Bergen Global Opportunity Fund. It will use the additional cash to support its working capital and expansion plans.
This agreement with Bergen gives us access to very significant funding over the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa, Winter said.
Media
Fastjet-A319-courtesy.jpg [4]
Publishing InformationSort Order:
55
Publish Date:
March 14, 2013
Fastjet to meet with 1time liquidator
Geza Ulole
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[h=1]Holiday season brings FastJet new passenger and revenue record[/h]
Image via fastjet.com
BY PROF. DR. WOLFGANG H. THOME, ETN AFRICA CORRESPONDENT | JAN 14, 2014FastJet's passenger statistics and information provided on revenues achieved shows a new record for December last year, just 13 months into the operations of the startup airline. 37,458 passengers flew with the airline driving the load factor to an average 71 percent for the month.
The airline also released additional data indicating that the yield per passengers for December had climbed to US$97, indicating a swell of last-minute bookings for which the minimum fare of US$20 – bare of fees and taxes though, an issue FastJet will hopefully address in 2014 – did not apply. Monthly earnings were reported to be in the region of US$3.6 million, exceeding the 3 million mark for the first time ever according to the details received.
Flights during December had a 92 percent on time departure record, which does allow for leaving up to 15 minutes late from the gate.
Mbeya saw flights rise from four a week to daily by mid-December as a result of what the airline called "pent-up demand." The airline's CEO Ed Winter was quoted in the media brief as having commented on these developments: "Based on our achievements in 2013, as we enter 2014, I am very optimistic about the prospect of FastJet rolling out the low cost model on many more routes. Our success to date shows that the African market will react very positively to the provision of reliable, safe and well-priced air transport."
AFRICA
Holiday season brings FastJet new passenger and revenue record - eTurboNews.com
BY PROF. DR. WOLFGANG H. THOME, ETN AFRICA CORRESPONDENT | JAN 14, 2014FastJet's passenger statistics and information provided on revenues achieved shows a new record for December last year, just 13 months into the operations of the startup airline. 37,458 passengers flew with the airline driving the load factor to an average 71 percent for the month.
The airline also released additional data indicating that the yield per passengers for December had climbed to US$97, indicating a swell of last-minute bookings for which the minimum fare of US$20 – bare of fees and taxes though, an issue FastJet will hopefully address in 2014 – did not apply. Monthly earnings were reported to be in the region of US$3.6 million, exceeding the 3 million mark for the first time ever according to the details received.
Flights during December had a 92 percent on time departure record, which does allow for leaving up to 15 minutes late from the gate.
Mbeya saw flights rise from four a week to daily by mid-December as a result of what the airline called "pent-up demand." The airline's CEO Ed Winter was quoted in the media brief as having commented on these developments: "Based on our achievements in 2013, as we enter 2014, I am very optimistic about the prospect of FastJet rolling out the low cost model on many more routes. Our success to date shows that the African market will react very positively to the provision of reliable, safe and well-priced air transport."
AFRICA
Holiday season brings FastJet new passenger and revenue record - eTurboNews.com
