flyafrica.com CEO Adrian Hamilton-Manns Discussing Expansion into Africa

fastjet Passenger Statistics for February 2014 and extension of EFF

 

12 March 2014 - fastjet plc is pleased to announce its passenger statistics for the month of February 2014 and an extension of its existing EFF from £15 million to £25 million.

 

fastjet Tanzania:

 

fastjet operations in Tanzania carried a total of 35,100  passengers and achieved a load factor of 76 per cent.  The average yield per passenger was $82, compared to $47 in February 2013.  Total revenue for the month was $2.87m, a 135 per cent increase from February 2013.

 

Punctuality remained outstanding with 93 per cent of fastjet flights operating on time. ^{Note 5}

 

Fly 540:

 

As expected, the passenger numbers carried by the legacy 540 businesses, particularly in Angola, continued to fall year-on-year as those businesses undergo significant restructuring.

 

Extension of EFF

The Company also announces that it has agreed to extend its current Equity Finance Facility ('EFF') with Darwin Strategic Ltd. from £15 million to £25 million.  All other aspects of the initial EFF agreement announced on 14^th June 2013 remain unchanged.  fastjet is also in talks with a number of potential long term investors. Whilst these are concluded the agreement with Darwin to extend the EFF is a prudent measure, which provides the Company with the flexibility to raise finance in the short term as required.

 

Ed Winter, interim Chairman and Chief Executive Officer of fastjet, said: 

 

"Our February performance continues to demonstrate how well the low cost model is working, producing strong average yields whilst still providing plenty of low-fare seats for passengers booking their seats early.  The continued growth in passenger numbers and yields puts fastjet well on track to become cash generative as the route network and capacity increase."

 

 

All Operations Note 1
Month ending	Feb 2014	Feb 2013	Change
Passengers Note 2	79,715	77,829	2.4%
Rolling 12 months ending	Feb 2014	Feb 2013	Change
Passengers Note 2	985,565	758,970	29.9%
fastjet Operations Note 4
Month ending	Feb 2014	Feb 2013	Change
Passengers Note 2	35,100	25,987	35.1%
Load Factor Note 3	76%	80%	-4pp
Rolling 12 months ending	Feb 2014	Feb 2013	Change
Passengers Note 2	379,901	83,330	356%

 

Notes:

1.  "All Operations" includes statistics for fastjet Tanzania, Fly540 Kenya, Fly 540 Ghana and Fly540 Angola.
2. "Passengers" for 540 operations are flown passengers and for fastjet operations are sold seats flown, in both cases excluding infants.  Fastjet bookings are generally non-refundable whereas 540 bookings are in some circumstances refundable 
3. "Load Factor" is the number of 'passengers" as a percentage of the number of available seats flown.  
4.  "fastjet Operations" includes only statistics for Fastjet Tanzania operations which commenced on 29^th November 2012
5. "on time" - arrival earlier than or within 15 minutes of schedule.

Kenya's Fly-SAX Seeks Tanzania Flights

 

The battle over Africa's skies ramped up a notch Tuesday as Kenyan low-cost carrier Fly-SAX said it was awaiting regulatory approval to launch a new airline based in Tanzania, a move that would put the airline head-to-head with fastjet PLC. Closely held Fly-SAX expects its SAX-Tanzania to make its maiden flight in the second half of the year with a fleet of small planes seating 12 to 80 passengers and serving some of the more remote parts of the country, according to a person familiar with the company's plans. In time, Fly-SAX hopes to get government approval for SAX-Tanzania to fly internationally from Tanzania, in a bid to attract a bigger and more lucrative market, this person said.

 

"We are launching a new airline to meet the ever-increasing demand for low-cost, efficient and safe air travel within Tanzania from the country's own citizens as well as international tourists," said Don Smith, chief executive of Fly-SAX and Fly 540 Kenya, in a news release prepared for distribution Wednesday. Fly-SAX has appointed Brown Francis as general manager of SAX-Tanzania. Mr. Francis joins from fastjet, where he was director for industry affairs for Tanzania. U.K.-based rival fastjet operates nationally and internationally from Tanzania, where it has effectively become the national flag carrier and has the right to fly to South Africa and Zambia.

 

The opportunity in Africa for airlines in general, and in particular for a budget carrier, is enormous because of the robust growth of regional economies and the continued development of internationally trading industries. These drivers have already triggered a significant rise in air travel. According to the latest data from trade body International Air Transport Association, air traffic measured by revenue passenger kilometers grew 5.1% from January to November 2013, compared with the same period in 2012. In Tanzania alone, capacity per week has grown to 54,000 available seats per kilometer from just 37,000 five years ago, according to aviation-consulting firm Innovata.

 

Source: wsj

Fastjet starts roll-out of Ancillary Products

 

Fastjet, Africa's low cost airline, has signed two agreements with partners in the travel industry, marking the launch of ancillary products on fastjet.com.The first, with Rentalcars.com parent company, TravelJigsaw Ltd, will offer low-cost car hire in Africa through fastjet.com, and the second will deliver competitively-priced online parking services in South Africa in partnership with Looking4Parking.com (L4P).

Head of commercial Ellis Cain-Jones said: "Ancillary revenues are a key element of the low cost model and contribute to the airline's revenues. These joint-ventures, together with our rapidly developing on-board retail offering, are the first of a very exciting list of customer-centric products fastjet expects to roll-out over the coming months.

"fastjet will also continue to work in each of the local markets in which it operates to identify uniquely local ancillary products that help promote local commerce and increase customer satisfaction."

 

Source: stockmarketwire
 

Fastjet still has eyes on South African Market

 

A domestic operation in South Africa is still on the cards for Tanzanian-based low-cost airline, Fastjet, with several more regional hubs being considered to grow intra-African routes. Capacity on the airline’s new Dar es Salaam – Lusaka service, launched last month, has been doubled with Chief Commercial Officer, Richard Bodin, commenting that plans to establish an independent base in Zambia have progressed well. "We are still very keen to establish an operation in Johannesburg," he added. "What we are currently working towards is to link our destinations with Johannesburg. Once we have established our base in Zambia, which we expect could be within the next three to six months, the very first route launched will be Johannesburg."

 

The long-term plan is to see different Fastjet-branded companies established across Africa. Ownership could be almost entirely locally-owned but "it is part of our quest to democratise air travel in Africa," Mr. Bodin maintained. He said the airline had no plans to syndicate its brand beyond the continent. And while new routes and hubs will be established in places of least resistance, a South African operation remains a priority. "We are in discussions with a few governments and companies which have seen the impact that affordable airfares have had.

 

"Zambia was chosen because obviously the market there offers great opportunities but also because the authorities there were very welcoming and keen. It is inevitable that countries with the most forward-thinking mentality are going to be the ones that attract us. And South Africa is certainly going to be a cornerstone," he added.

 

Source: iafrica

Kenyan Low Cost Carrier Jambo Jet set for Launch

Zimbabwean LCC startup, flyafrica.com, set to get first Czech B737-500

 

 

flyafrica.com (FZW, Harare Int'l) is set to take delivery of its first of five ex-CSA Czech Airlines (OK, Prague) B737-500s Skyliner Aviation has reported. The Zimbabwean start-up's first twinjet, T7-FAA (msn 26539), was recently spotted in an all-white livery prior to its handing over to flyafrica.

Research shows the airline has acquired the Air Operators Certificate granted to defunct Zimbabwean Low Cost Carrier, Fresh Air (Zimbabwe) (Z7, Harare Int'l). Initial destinations are believed to include Harare Int'l, Victoria Falls and Johannesburg O.R. Tambo.

Source: ch-aviation

Fastjet to Increase Lusaka Zambia Flights

 

African low-cost airline fastjet PLC Tuesday said it will increase capacity on its new route between Dar es Salaam in Tanzania and Lusaka in Zambia after it met strong customer demand, and it predicted it would be providing a daily service on the route in the future.

 

The airline only launched the route, its second outside Tanzania, on February 3, although it had said at that time that it hoped to be able to increase capacity on the route in the future. It started with a twice-a-week service and will now add a third rotation service each Tuesday. In a statement, it said it has been experiencing high load factors on the route and several flights have been completely sold out.

 

"Our research suggested that this was going to be a successful route with high demand but initial passenger numbers and interest have exceeded expectations. We expect to add still more capacity on this route - our target is to operate daily," Chief Commercial Officer Richard Bodin said.

 

Fastjet added that its plans to establish a base in Zambia are progressing. It is incorporating a company in the country and has started the process of getting an air operating certificate in Lusaka.

The airline currently operates several routes within Tanzania under the fastjet brand. Its first "international" route was between Dar es Salaam and Johannesburg, while it added the Lusaka route this month. Fastjet shares were up 5.1% at 2.05 pence Tuesday morning.

 

Source: LSE

Ethiopian Airlines chief dismisses Stelios’s "Fastjet" African dream

Africa is not ready for airlines such as Fastjet, the brainchild of EasyJet founder Stelios Haji-Ioannou, says the head of the continent’s leading carrier. Ethiopian Airlines chief executive Tewolde Gebremariam told the Aviation Club in London yesterday: “We have a different view of the low-cost model in Africa because cross-border traffic in Africa is fragmented.”

Gebremariam said: “Low-cost carriers are based on utilising aircraft 10 times a day, then unit costs come down. It is very difficult to do that in Africa. “Point to point will be challenging on the continent [because] 60% of market segments in Africa have less than 50 passengers per day.” Fastjet began operating as a low-cost carrier in November 2012, based in Tanzania and also serving South Africa and Zambia.

Co-founder Haji-Ioannou has plans to turn Fastjet into a pan-African carrier But Gebremariam said: “There are other constraints. One is traffic rights between countries. “The low-cost model could be perfect within a country’s borders, within Nigeria or South Africa for example. But the issue of cross-border traffic rights is a big bottleneck.”

He added: “The low-cost model should transform costs. But in Africa low-cost and full-service carriers pay the same not just for fuel but for [using] the airport. It is very difficult.” Gebremariam was also critical of European governments, especially the UK’s. He said: “We see aviation’s centre of gravity moving from Europe to the Gulf and European governments and politicians are helping the [Gulf carriers] by making it very difficult for airlines to operate in Europe. “Tax is one factor. Airport congestion is another. Ethiopian Airlines wants to fly to Heathrow twice a day but we can’t even go daily. We operate six flights a week. “A third runway has been discussed for years. Dubai just got on and built six runways.”

Source: TravelWeekly

Fastjet Annouces new Lusaka Route

On the day of its 1 year anniversary, lowcost carrier FastJet announced the launch date for their second international destination out of their base in Dar es Salaam. The new route will be Lusaka, Zambia and flights are due to commence on February 1, 2014, subject to all regulatory approvals. FastJet will use their Airbus A319 for their next destination and has proposed to fly initially twice a week, joining Zambia’s Pro-Flight on the route. Cost for the ticket was given as approximately US Dollars 75, one way, and in typical FastJet style subject to all regulatory fees and taxes.

"We are incredibly pleased that, in accordance with our planned growth strategy, the roll-out of our international route network is now gaining real momentum and we are fulfilling our promise to the people of Africa to democratise air travel across the continent.  We look forward to bringing the benefits of affordable, high-quality air travel to the people of Zambia" Ed Winter, Interim Chairman and Chief Executive Officer of fastjet, said.

Mr Winter is understandably chuffed about the latest development of the fast-growing airline. "We are immensely proud of our achievements over the past year. It is not only the hard work and dedication of our people that has made our first year a success, but also the overwhelming support of our passengers and the Tanzanian government, whom we would like to wholeheartedly thank," fastjet said.

 

Overcoming a number of challenges, fastjet has established itself as a reliable, affordable low-cost carrier. Over the past year, it has seen consistently strong passenger numbers and load factors, and maintained excellent punctuality and reliability records. The airline has carried over 355,000 passengers throughout its domestic network in Tanzania and internationally to Johannesburg, South Africa.
 

Benefit of Low Cost Carriers to Zimbabwe

South African Low Cost Carriers such as 1time Airlines and Velvet sky have show great interest in plying the Zimbabwe routes including Harare and Victoria Falls. A report showed that 1time had applied for landing slots but whether or not the applications were approved has not yet been confirmed. Currently the Hre-Jnb route is one of the busiest International routes within Africa but one of the most expensive to travel. The average price for a return ticket can cost between $440 and $600 on either South African Airways or British Airways (Comair) with Air Zimbabwe having canceled their service on this route. The introduction of LCC's on these routes can lower fares by close to 50% which will mean fares will cost around $200-$300, a big difference compared to the current fares. It will definitely prove beneficial for your average business and leisure traveler who in the past might have had to make the journey by car or bus which takes 14-16 hours and also avoids the recurring problems at the borders. Personally i think the route can start off with a twice daily service between Jnb and Hre (which is basically taking over Air Zim's service) then a once daily service between Jnb-Vfa. Other options include service to and from Lanseria airport in Johannesburg which has cheaper landing costs. Hopefully we can see such a development here in the near future.