Fastjet

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This is for Airline fastJet, for British low-cost airline which owns fastJet, please see EasyJet

fastjet Plc
Public limited company
Traded asLSEFJET
IndustryAirline
Headquarters,
Area served
Tanzania, Zimbabwe, Mozambique, with a smaller market presence in South Africa and Zambia
Key people
Nico Bezuidenhout (CEO)
Michael Muller (CFO)
RevenueIncrease US$ 68.5m million (2016)
Increase US$ -63.9m million (2016)
Websitefastjet.com

Fastjet Plc is a British/South African-based holding company for a group of low-cost carriers that operate in Africa. The company's stated aim is to become the continent's first low-cost, pan-African airline, and the operation was initially created with the acquisition of Fly540, an airline operating in East Africa; flights in Fastjet's own name commenced in November 2012 in Tanzania.[1] In order to satisfy local ownership and other requirements, the strategy is to create locally incorporated airlines or a series of licensees to operate services, using a common branding, operational standards and sales platform.

The initial operation is now run as Fastjet Tanzania, which recently celebrated its fifth birthday. Fastjet Zimbabwe commenced flights in October 2015, and Fastjet Mozambique in November 2017. Plans have also been announced for domestic operations in South Africa.[2]

As of February 2018, the airline operates two E190 and three E145 aircraft across East- and southern Africa. It has carried in excess of 2.5 million passengers with an aggregate 90% on-time performance.

Fastjet is also a multi award-winning airline. In 2017, they were named by the World Travel Awards as Africa's Leading Low-Cost Airline for the second year in a row, and Skytrax World Airline Awards named fastjet the 2017 Best African Low-Cost Airline.

History[edit]

Initial proposals[edit]

Originally reported to be competing with easyJet,[3] it was later claimed that Fastjet was planned to be a transatlantic long-haul airline.[4] It was eventually revealed that Fastjet was a proposed low-cost African airline, and that an agreement had been signed with Rubicon Investments.[5]

In June 2012 the plans became clearer. To start the operations, Rubicon Diversified Investments Plc (later renamed Fastjet Plc) completed the acquisition of Lonrho's airline division for a transaction value of US$85.7m, satisfied by the issue of Rubicon ordinary shares to Lonrho. Key shareholders in the enlarged company would be Lonrho and Sir Stelios Haji-Ioannou, through his easyGroup Holdings Limited (“easyGroup”). The airline division acquired included the African regional airline Fly 540, operating in Kenya, Sudan, Tanzania and Uganda, which would form the platform for the development of a low-cost carrier for Africa, branded ‘Fastjet’ under the terms of the easyGroup brand licence agreement.

Commencement of operations[edit]

The airline chose Dar es Salaam, Tanzania, as its first operating base in Africa, with flights from Julius Nyerere International Airport commencing on 29 November 2012. Initially flights operated successfully between Dar es Salaam and Kilimanjaro, and between Dar es Salaam and Mwanza. Further routes were to be added quickly, both domestically and to other East African destinations,[6] and FastJet said it would move its operation office from Tanzania to Kenya, once it has approval to operate in Kenya.[7] Once established in East Africa, Fastjet also had plans to launch in Ghana and Angola.[8] In May 2014 Fly540 Ghana and Fly540 Angola were both shut down as they were incompatible with the Fastjet low-cost model.[9][10]

Expansion of services[edit]

As well as expanding services from the base in Tanzania, in October 2015 the company obtained an Air Operator's Certificate (AOC) for Zimbabwe,[11] and announced its plans to launch fastjet Zimbabwe. The initial flights between its base at Harare International Airport to Victoria Falls commenced on 28 October 2015,[12] and flights to Johannesburg commenced from 1 February 2016.[13] Although Fastjet Zambia was at an advanced planning stage, in April 2016 it was announced that progress was being deferred until at least the final quarter of 2016.[14]

Restructuring 2016-17[edit]

With troubled operations and continued losses, majority shareholder Stelios Haji-Ioannou through his holding in EasyGroup successfully changed the board of fastjet Plc with the departure of six board members in a short period of time. Ed Winters was replaced as CEO by Nico Bezuidenhout, from rival low-cost airline MangoSA, on 1 August 2016.[15]

Bezuidenhout instigated a 'Stabilisation Plan', which included reducing unprofitable routes, switching from A319s to (smaller) Embraer aircraft and moving the airline's headquarters from London Gatwick Airport to Africa - later revealed as a move to Johannesburg.[16] The aim was to achieve cashflow breakeven in the fourth quarter of 2017.[2] As part of a further fundraising in September 2017, to raise not less than US$44m, it was revealed that the Plan's objectives had been achieved or were on track.[2]

Resumption of growth[edit]

At the time of the fundraising, it was announced in September 2017 that domestic flights would be launched in both Mozambique and South Africa, by way of brand licence agreements with Solenta Aviation Mozambique and Federal Airlines respectively. Both were established profitable airlines, but only flew small aircraft, operating air shuttle, scheduled and charter services.[2] Fastjet Mozambique commenced operations on 3 November 2017 with flights from Maputo to Beira, Nampula and Tete.

2017 also saw fastjet revise the company slogan from smart travel to for everyone, further reinforcing the company's mandate to make air travel in Africa more affordable and open to all, particularly those who never thought it possible.

2018 and beyond[edit]

As of February 2018, CEO Nico Bezuidenhout continues to build on fastjet's current routes, with the launch of a Dar es Salaam to Kigoma flight. The airline launched daily flights between Harare and Bulawayo on 20 July 2018, marking it as the most affordable airline to operate the Harare Bulawayo route. More route launches are expected throughout the course of the year.

Corporate affairs[edit]

Ownership[edit]

Fastjet Plc (FJET:LSE) is incorporated in England and Wales and is traded on the London Stock Exchange Alternative Investment Market (AIM). The company intends to evaluate a dual listing of the Company on the AltX market of the Johannesburg Stock Exchange.[2]

After their initial involvement, Lonrho Plc disposed of their shares in Fastjet by 14 November 2013.[17] Current estimated major interests in ordinary shares (as at April 2017)[18] are:

Shareholder Shares Interest
Solenta Aviation Holdings Limited 156,267,528 029.91%
M&G Investment Management 104,427,139 019.99%
Majedie Asset Management 46,378,285 08.88%
GAM London 28,384,757 08.54%
Janus Henderson Investors 47,016,578 09.00%
J.O. Hambro Capital Management 28,956,141 05.54%
Liberum Capital 38,593,492 07.47%
Fastjet Plc Employee Benefit Trust 21,504,112 4.12%
Total 771,228,083 100.00%

Structure[edit]

The Group's stated aim is to become the continent's first low-cost, pan-African airline, but each country has different local ownership and other requirements. To accommodate this, Fastjet use a combination of brand licenses and partially owned locally incorporated airlines to operate services, all using common branding, operational standards and sales platform. The current structure is:

Entity/country Operating company Relationship Interest Current status Notes/refs
Fastjet Kenya Fastjet Kenya Ltd. Subsidiary 49.0% Dormant [19]
Fastjet Mozambique Solenta Aviation Mozambique Ltd. Brand licensee - Operational (2017) [2]
Fastjet South Africa Federal Airlines (Pty.) Ltd. Brand licensee - Planned [2]
Fastjet Tanzania Fastjet Airlines Limited Subsidiary 49.0% Operational (2012) [19]
Fastjet Zambia Fastjet Zambia Ltd. Subsidiary 49.5% Dormant [19]
Fastjet Zimbabwe Fastjet Zimbabwe Ltd. Subsidiary 49.0% Operational (2015) [19]

The subsidiaries are included in the Group financial statements, because although the Group holds 50% or less of the voting rights in each, it controls the management, operations and distributions through contractual agreements as well as its shareholding.[19]

Brand ownership[edit]

The Fastjet brand was originally owned by Easygroup Holdings Ltd, and licensed to Fastjet Plc. On 29 June 2017 Fastjet entered into an agreement with Easygroup Holdings Ltd to acquire all intellectual property rights associated with the fastjet brand for $2.5 million.[20] Sir Stelios Haji-Ioannou, who established the fastjet brand in 2012, stated, “fastjet is a great brand in all its African markets, making it a highly valuable asset for the company. I have accepted the view of the current board that the company should own its own brand rather than licence it from me.”

Business trends[edit]

Fastjet Group results are shown below (as at year ending 31 December 2016). Fastjet began trading under its own name on 29 November 2012. Financial results below for 2012 for Fastjet were for the 18-month period ended 31 December 2012. The company and group report in US Dollars.

Because Fastjet ran operations in various countries as Fly540, for comparative purposes the table below also shows separate operational figures for the original businesses, and for the Fastjet activities (in Tanzania and Zimbabwe).

2011 2012 2013 2014 2015 2016
Turnover (US$ m) n/a 21.1 53.4 53.8 65.1 68.5
Profits/losses after tax (US$ m) n/a −55.9 −80.9 −72.1 −21.9 −48.1
Number of employees (average) 8 371 436 271 n/a n/a
Fastjet operations
Number of passengers (m) 0 0.03 0.37 0.60 0.79 0.79
Passenger load factor (%) - 78.9* 72.0 73.3 66.7 53.7
Number of aircraft (at year end) 0 3 3 3 6 4
Fly540 operations
Number of passengers (m) 0.45 0.67 0.62 n/a -
Passenger load factor (%) 62.0* n/a n/a n/a -
Number of aircraft (at year end) 4 n/a n/a 0
All operations
Number of passengers (m) 0.45 0.70 0.99 0.60 0.79 0.79
Passenger load factor (%) 62.0* 71.8* 72.0 73.3 66.7 53.7
Number of aircraft (at year end) 7 n/a 3 6 4
Notes/sources *Dec only
[21]
*Dec only
[22]
[23] [24] [14] [19]

Head office[edit]

Fastjet head office is currently located in Johannesburg, South Africa[2]. Prior to 2017 it was based at London Gatwick Airport. Each locally incorporated airline has a registered/head office in its country of operation.[19]

Fastjet Plc, being London-quoted, has its registered office at 6th Floor, 60 Gracechurch Street, London EC3V 0HR.[25]

Fastjet head office

Key West Shopping Centre

43 Van Buuren Road

Bedfordview

2007

Destinations[edit]

As of February 2018, fastjet serves 13 destinations in five African countries. Their routes include:

Mozambique

Maputo – Beira

Maputo – Nampula

Maputo – Tete

South Africa

Johannesburg – Harare

Johannesburg – Victoria Falls

Tanzania

Dar es Salaam – Kigoma

Dar es Salaam – Kilimanjaro

Dar es Salaam – Lusaka

Dar es Salaam – Mbeya

Dar es Salaam – Mwanza

Zambia

Lusaka – Dar es Salaam

Zimbabwe

Harare – Bulawayo

Harare – Dar es Salaam

Harare – Johannesburg

Harare – Victoria Falls

Victoria Falls – Johannesburg

Codeshare agreements[edit]

Fleet[edit]

Current fleet

Fastjet operates two Embraer 190 and three Embraer 145 aircraft.

The E190 seats between 70 and 130 passengers. It offers a spacious interior with window and aisle seats. Added to this, there are no rails under the seats allowing passengers to stretch their legs. This aircraft is operated only on Tanzanian routes.

The E145 seats up to 50 passengers. It offers space saving retractable panels in the overhead compartments and both window and aisle seats. This aircraft operates across all FastJet routes, barring Tanzania.

The airline's name and URL is painted on the body of the aircraft with the company mascot "Mr Grey" placed on the tail of the plane. Touches of red and yellow can be seen on the aircraft's wings and engines.

Historical fleet

Previously, fastjet operated the Airbus A319. Due to passenger load on routes, these aircraft were grounded in favour of the smaller Embraer aeroplanes.

Services[edit]

In-flight entertainment

On board passengers will find a copy of the airline's in-flight magazine, fastjet Places. It is also available to read online via www.fastjet.com.

Catering

Hot, cold and alcoholic beverages, as well as a selection of sweet and savoury snacks are available for purchase on all flights. The full in-flight menu can and does vary across the different routes.

References[edit]

  1. ^ Start of flight operations (in German)
  2. ^ a b c d e f g "Proposed Fundraising". London Stock Exchange. Retrieved 14 October 2017.
  3. ^ Fastjet could leave EasyJet feeling queasy, Financial Times, 2011-09-28
  4. ^ Stelios's Fastjet to take on long-haul market. The Daily Telegraph.
  5. ^ EasyGroup and Rubicon to study Africa airline. Af.reuters.com (5 December 2011).
  6. ^ Fastjet tickets go on sale. Easy.com (13 November 2012).
  7. ^ FastJet shifts focus to East Africa market with Nairobi hub . businessdailyafrica.com (29 November 2012).
  8. ^ "Stock Exchange announcement". 6 February 2013. Retrieved 15 February 2013.
  9. ^ "Fly 540 to cease operations in Ghana". citifonline. 16 May 2014.
  10. ^ "Restructuring of Fly540 Angola and Ghana". Fastjet plc. 29 April 2014.
  11. ^ "fastjet granted Air Operator Certificate in Zimbabwe". London Stock Exchange RNS. Retrieved 7 October 2015.
  12. ^ "fastjet Zimbabwe's inaugural flight". Fastjet. Retrieved 22 January 2016.
  13. ^ "fastjet launches new routes from Zimbabwe". Fastjet. Retrieved 22 January 2016.
  14. ^ a b "Final Results for the year ended 31 December 2015" (PDF). Fastjet. Retrieved 2 June 2016.
  15. ^ "Mango boss Nico Bezuidenhout parachutes out of SAA". Financial Mail. Retrieved 2016-09-19.
  16. ^ liezelhill, Liezel Hill (2016-09-19). "Fastjet Drops Airbus Jets for Embraer, Moves HQ to Johannesburg". Bloomberg.com. Retrieved 2016-09-19.
  17. ^ "Lonrho departs fastjet's share register". Retrieved 5 April 2014.
  18. ^ "Fastjet - Shareholders". 28 April 2017. Retrieved 17 August 2017.
  19. ^ a b c d e f "Final Results for the year ended 31 December 2016" (PDF). Fastjet. Retrieved 27 August 2017.
  20. ^ "Trading Update". Fastjet. 30 June 2017. Retrieved 27 August 2017.
  21. ^ "Fastjet passenger statistics". Easygroup. Retrieved 2 April 2013.
  22. ^ "Results for the 18-month period to 31 December 2012". Fastjet. Retrieved 1 June 2013.[permanent dead link]
  23. ^ "Final Results for the year ended 31 December 2013". Fastjet. Retrieved 26 June 2014.
  24. ^ "Final Results for the year ended 31 December 2014" (PDF). Fastjet. Archived from the original (PDF) on 22 September 2015. Retrieved 5 June 2015.
  25. ^ "Investor Contacts". Retrieved 17 August 2017.
  26. ^ https://macauhub.com.mo/2018/03/21/pt-linhas-aereas-de-mocambique-e-fastjet-assinam-parceria/

External links[edit]