Fastjet

Last updated

fastjet
Type Private Company
Industry Airline
Headquarters
Johannesburg
,
South Africa
Area served
 Zimbabwe, South Africa, Botswana
Key people
Mark Hurst (CEO)
Kris Jaganah (CFO)
Donahue Cortes (COO)
Julian Edmunds (CCO)
RevenueIncrease2.svg US$ 16.0 m million (2020)
Decrease2.svg US$ 1,8m million (2020)
Website fastjet.com

Fastjet Limited is an African airline that began flight operations in 2012. It is headquartered in Johannesburg and serves regional flights between South Africa, Botswana and Zimbabwe.

Contents

History

Initial proposals

In June 2012, 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 license agreement.[ citation needed ]

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.[ citation needed ]

Expansion of services

As well as expanding services from the base in Tanzania, in October 2015 the company obtained an Air Operator's Certificate (AOC) for Zimbabwe, and Fastjet Zimbabwe was launched. The initial flights between its base at Harare International Airport to Victoria Falls commenced on 28 October 2015, and flights to Johannesburg commenced from 1 February 2016 and flights to Nelspruit Kruger Mpumalanga and Maun Botswana have recently been announced from Victoria Falls commencing on 16 March 30 June 2022.[ citation needed ] 

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 Mango, on 1 August 2016.[ citation needed ]

Bezuidenhout instigated a 'Stabilisation Plan', which included reducing unprofitable routes, switching [KJ3] [NN4] from A319s to (smaller) Embraer ERJ145 aircraft and moving the airline's headquarters from London Gatwick Airport to Africa - later revealed as a move to Johannesburg. The aim was to achieve cashflow breakeven in the fourth quarter of 2017. As part of a further fundraising in September 2017, to raise not less than US$44m.[ citation needed ]

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 license agreements with Solenta Aviation Mozambique and Federal Airlines respectively. Both were established airlines, but only flew small aircraft, operating air shuttle, scheduled and charter services. Fastjet Mozambique commenced operations on 3 November 2017 with flights from Maputo to Beira, Nampula and Tete.[ citation needed ]

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.[ citation needed ]

As of September 2019, CEO Nico Bezuidenhout resigned as the chief executive officer of Fastjet. He has been replaced by Mark Hurst.[ citation needed ]

At the end of the financial year Fastjet achieved profits for the first time in its history. However, during the height of the lockdown period the airline suspended flights across its network following the closure of borders between Zimbabwe and South Africa. Fastjet performed numerous repatriation flights during this period reuniting families and transporting essential staff between the two countries.[ citation needed ] In 2021 the company received fourth Embraer ERJ aircraft that was put into service on the Harare Bulawayo route.[ citation needed ]

At the beginning of 2022 Fastjet announced the launch of flights from Victoria Falls to Maun in Botswana on 4 times a week basis effective 30 June 2022. This becomes the second route that the airline would have launched in 2022 after flights from Victoria Falls to Nelspruit Kruger Mpumalanga.[ citation needed ]

Corporate Affairs

Ownership

Fastjet Limited is a company incorporated and domiciled in England and Wales and, until 24 August 2020, was traded on the London Stock Exchange Alternative Investment Market (AIM) (FJET:LSE). [1] Estimated major interests in ordinary shares (as at April 2017) [2] are:

ShareholderSharesInterest
Solenta Aviation Holdings Limited2,549,247,18067.00%
Janus Henderson Investors214,943,6655.66%
Liberum Capital212,276,0225.59%

The Group functions of Fastjet Limited head office, and several dormant holding companies, have, since 2019, been reported as Fastjet Central Systems, which is responsible for the supply of all booking systems, brand compliance and oversight, and revenue accounting, for any Fastjet branded airline operations, for which it charges a management fee to the supported airline.

Subsidiaries

Two airlines are currently operational: Fastjet Zimbabwe, domestically in Zimbabwe and internationally, and FedAir, with mainly charter and safari business in South Africa. [1] 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. [3]

Trading nameOperating baseOperating companyRelationshipVoting rights heldNotes/refs
Fastjet Zimbabwe Harare, ZimbabweFastjet Zimbabwe Ltd.Brand Licensee49% [3] [1]
Federal Air Johannesburg, South AfricaFederal Airlines (Pty.) Ltd.Brand Licensee ACMI Operator25% [4] [1]

Former subsidiaries

Operations of Fastjet Zambia (49.5%) and Fastjet Mozambique (100%) have currently been discontinued. [1] Fastjet Tanzania, the original Fastjet operation, was sold on 26 November 2018. [1]

Brand ownership

The Fastjet brand was originally owned by Easygroup Holdings Ltd, and licensed to Fastjet Plc. Sir Stelios Haji-Ioannou established the Fastjet brand in 2012. On 29 June 2017 Fastjet Plc entered into an agreement with Easygroup Holdings Ltd to acquire all intellectual property rights associated with the Fastjet brand for $2.5 million. [5]

Fastjet Limited group results are shown below (as at years ending 31 December):

20112012201320142015201620172018201920202021
Turnover (US$ m)n/a21.153.453.865.168.546.238.540.816.027.9
Profit after tax (US$ m)n/a−55.9−80.9−72.1−21.9−48.1−24.5−65.0−6.91.80.1
Number of employees (average)8371436271n/an/a211263240195189
Number of passengers (m) [lower-alpha 1] 0.450.70.990.600.790.790.540.250.200.060.15
Passenger load factor (%) [lower-alpha 2] 62.071.87273.366.753.77172676164
Number of aircraft (scheduled)(at year end)7n/a36433334
Number of aircraft (shuttle/safari)(at year end)466
Notes/sources [lower-alpha 3] [lower-alpha 4] [1] [1]
  1. ↑ for scheduled services only
  2. ↑ for scheduled services only
  3. ↑ 2012: Financial results for 2012 for the 18-month period ended 31 December 2012
  4. ↑ 2020: Activities and income in fiscal 2020 were severely reduced by the impact of the coronavirus pandemic

Head office

Fastjet's Group head office is located in South Africa. [6] Prior to 2017, [7] it was based at London Gatwick Airport in Crawley, West Sussex. [8] The move to South Africa was done to lower the cost of doing business. [9] The registered office and Fastjet plc head office is in London. [10] Each locally incorporated airline has a registered/head office in its country of operation. [11] [ failed verification ]

Destinations

As of October 2022, Fastjet Zimbabwe serves the following destinations in three African countries: [12]

CountryPlaceAirport
Flag of South Africa.svg South Africa Johannesburg O.R. Tambo International Airport
Nelspruit Kruger Mpumalanga International Airport
Flag of Zimbabwe.svg Zimbabwe Harare Robert Gabriel Mugabe Airport
Victoria Falls Victoria Falls International Airport
Bulawayo Joshua Mqabuko Nkomo International Airport
Flag of Botswana.svg Botswana Maun Maun Airport

Fleet

Current fleet

As of April 2023, the Fastjet fleet consists of the following aircraft: [13]

Former fleet

Previously, Fastjet also operated the following aircraft types:[ citation needed ]

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References

  1. 1 2 3 4 5 6 7 8 "Annual Report 2021" (PDF). Fastjet plc. Archived (PDF) from the original on 28 January 2023. Retrieved 28 January 2023.
  2. ↑ "Fastjet - Shareholders". 28 April 2017. Archived from the original on 9 August 2014. Retrieved 17 August 2017.
  3. 1 2 "Final Results for the year ended 31 December 2016" (PDF). Fastjet. Archived from the original (PDF) on 31 July 2017. Retrieved 27 August 2017.
  4. ↑ "Proposed Fundraising". London Stock Exchange. Archived from the original on 8 November 2017. Retrieved 14 October 2017. fastjet has phased out all expatriate staff, concluded the closure of its Gatwick head office and successfully migrated the Head Office from the UK to South Africa.
  5. ↑ "Trading Update". Fastjet. 30 June 2017. Archived from the original on 28 August 2017. Retrieved 27 August 2017.
  6. ↑ "Proposed Fundraising". London Stock Exchange. Retrieved 14 October 2017.[ verification needed ]
  7. ↑ "fastjet Plc("fastjet" or the "Company") (AIM: FJET)Interim Results for the six months to 30 June 2017" (PDF). Fastjet. Archived (PDF) from the original on 13 February 2021. Retrieved 2 February 2021. the successful migration of fastjet's headquarters from Gatwick to South Africa
  8. ↑ "Investor Contacts". Fastjet. 15 November 2014. Archived from the original on 25 November 2014. Retrieved 2 February 2021. Registered Office and Head Office fastjet Plc Suite 2C First Point Buckingham Gate Gatwick Airport RH6 0NT
  9. ↑ Hill, Liezel (19 September 2016). "Fastjet to move headquarters to South Africa". News 24. Bloomberg News. Archived from the original on 11 August 2020. Retrieved 2 February 2021.
  10. ↑ "Investor Contacts". Fastjet. 14 August 2017. Archived from the original on 14 August 2017. Retrieved 2 February 2021. Registered Office and Head Office fastjet Plc 6th Floor 60 Gracechurch Street London EC3V 0HR
  11. ↑ "Final Results for the year ended 31 December 2016" (PDF). Fastjet. Retrieved 27 August 2017.[ verification needed ]
  12. ↑ fastjet.com - Flight Route Map Archived 15 October 2022 at the Wayback Machine retrieved 9 October 2022
  13. ↑ fastjet.com - Our Company Archived 6 April 2023 at the Wayback Machine retrieved 12 April 2023
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