Fastjet receives Foreign Operator Permit

Fastjet, the low-cost carrier operating from its hub in Tanzania, has finally received its Foreign Operator Permit from the South African Department of Transport. This was the final administrative hurdle that needed to be overcome, in order for the airline to begin operating flights between Dar es Salaam and Johannesburg.

“We expect this to be a particularly popular route, due to the fact that South African Airways has had a monopoly on this route for far too long,” said Ed Winter, Chief Executive Officer of fastjet. “We are very keen to offer substantially more affordable fares to customers and further stimulate the potential traffic between these two key African cities, which can only have a very positive effect on the critical trade, commercial and tourism industries between South Africa and Tanzania.”

Fastjet’s June revenue in Tanzania exceeded $2.2m, a 22% increase on the previous month. Fastjet load factors for the month grew from 68% to 78%, with yield per seat also increasing.

 

FastJet Shift SA Launch Date

According to news24, low-cost carrier fastjet has extended its anticipated launch date in South Africa to July, from the original proposed date of 31 May.
 According to Business Day Live, ticket sales for the British-based airline were set to get under way on 16 May, but a glitch in the website apparently scuppered the process.  
The low-cost carrier launched in Tanzania last year and has its sights set on offering a pan-African low-cost flight option. Fastjet has entered the market on Federal Air’s licence, which allows the latter to fly internationally and use large aircraft, including the 737 that fastjet has in mind.

Fastjet to Fly in SA

 According to Bizcommunity, low-cost airline fastjet has signed an agreement with South African investment company Blockbuster, which will allow fastjet to operate services in South Africa by the end of May. It is anticipated that the new entity will be 75% owned by Blockbuster, in compliance with South African law, and 25% owned by fastjet. The airline's chief executive Ed Winter said fastjet sees a strategic gap in the South African market for a pan-continental, low-cost airline operating the yield management model required to keep fares affordable for passengers in the long term. Winter added that they are firmly focused on getting up and running, in order to "create a fresh, unique and commercially sustainable offering which will stimulate the market." Blockbuster has made a commercial arrangement with local operator Federal Airlines, which will allow fastjet to leverage Federal Airline's existing licensing infrastructure and deliver its low-cost airline model to the South African public. In recent months, fastjet has been in discussions with a number of South Africa-based entities to support its market entry strategy, including negotiations regarding a potential purchase of liquidated airline 1time. David Lenigas, fastjet's chairman, said they are not seeking to be a hostile competitor, but rather provide extra seat capacity to South Africans, so that they can travel when and where they want at better prices. Tickets are expected to go on sale in a few weeks, and fastjet is targeting the 31st of May as the launch date for the initial Johannesburg to Cape Town route.

FastJet Told to Pay Up

 According to eturbonews.com, Tanzanian authorities, led by the Tanzania Civil Aviation Authority, have issued FastJet’s local management with an ‘either/or’ option, to pay their debts, including debt incurred by Fly540 Tanzania, or deal with the consequences. TCAA are vigorously pursuing payment within the stipulated timeframe, failing which TCAA may pull the plug on the airline’s operations, or ground one or all of their aircraft, to ensure that no further debts accrue and that the carrier pay outstanding dues from current and past operations. FastJet launched operations between Dar es Salaam and Kilimanjaro, with onward flights to Mwanza, in December last year, but it is currently locked in a battle with Fly540 over the payment of the debt cited.