With ambitious plans to create Africa’s first pan-continental airline, fastjet will bring
international standards of safety, quality, security and reliability.

Low-cost is quite simply the avoidance of costly frills, offering customers the lowest possible
fares in addition to pay-as-you travel extras. This affords passengers the flexibility to pay for
additional services such as a bag or refreshment rather than having to pay for it regardless
whether you want it or not.

Importantly fastjet low-cost definitely does not mean low quality. Despite the many challenges
that exist outside our control we will be open, honest, transparent and communicative to
ensure that your travel arrangements remain with the least amount of interruption.

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Sir Stelios Haji-Ioannou, the founder of EasyJet, is set to launch a low-cost airline in Africa this year after taking a 5% stake in a new venture FASTJET PLC.

The easyGroup tycoon, who is embroiled in a long-running boardroom battle with easyJet, is backing a carrier that will operate under his Fastjet airline and be run by former easyJet executives.

Fastjet will operate from Kenya, Tanzania, Ghana and Angola. The ambition is to carry more than 12 million passengers a year, from the 500,000 at present, by cashing in on demand for regional travel from a burgeoning African middle-class.

Haji-Ioannou said the move would help bring low-cost air travel to more Africans. "This is another small but significant step in bringing the dream of low-cost air travel to millions of people in Africa – the aviation industry's last frontier. Past experience shows that by halving fares, a successful low-cost carrier can encourage those people, who have never previously travelled by air, to fly."

Didn't they raise more cash by issuing more shares in June? Now they need yet more?????? I wonder how much the Directors are paying themselves. I bet their salaries are ring fenced!

Surely with very low fuel costs that should offset any other unexpected costs?

As I posted in Jun last year:
HARRYCAT View HARRYCAT's profile - 23 Jun 2015 14:09 - 378 of 428 edit this post

10 aircraft flying around Africa, including Zambia, Tanzania, Zimbabwe and Uganda, operating on the 'Budget Airline' principle........what can possibly go wrong?!!!!!

StockMarketWire.com
Africa low-cost airline fastjet's chairman Colin Child has resigned after the company confirmed it needed to raise further capital and expected to initiate a fundraising exercise which it plans to complete in the first quarter of 2017.

Having led a fundraising exercise in July, he believes that it would not be appropriate for him to continue in this role given the company is initiating, sooner than originally expected, a further fundraising exercise.

The company says that further to the operational fleet update on 3 October, it has continued to implement the stabilisation plan and is transitioning its fleet from the existing 145-seat A319 aircraft to smaller aircraft, initially through short term wet leases (aircraft, crew, maintenance and insurance), to be superseded by dry leases (aircraft only) in the start of H2 2017.

It says material progress has been made and two-thirds of the company's A319 aircrafts have now been removed from fleet and the first wet-leased Embraer e-Jet E190 aircraft was introduced in Tanzania during October 2016.

Based on initial experience with the aircraft the board remains confident that the original expectations of a 10-15% reduction in operating cost will be achieved while seat occupancy rates on flights conducted with the E190 has to date shown an 18-percentage point increase and average yields have increased by approximately 12%.

The company says it has continued the process of assessing its route network and has aggressively rationalised routes and/or reduced frequencies to match supply levels with demand.

This process is nearing completion, with rationalisation of flight activities between Tanzania and Kenya, Tanzania and Uganda as well as between Tanzania and Zimbabwe taking effect on 5 December.

Service frequency between Harare, Zimbabwe and Johannesburg, South Africa, has been increased whilst services between Johannesburg and Victoria Falls, Zimbabwe, will be suspended as from next month.

The remaining routes within Zimbabwe and Tanzania, and between these countries and South Africa, are all projected to positively contribute to fixed cost during December 2016 and will continue to be closely monitored thereafter.

Looking ahead it says: "Based on the steps taken in stabilising the business, we expect Q1 2017 to show a c.25% reduction in fixed operating cost & overheads year on year and a c.35% reduction in variable operating cost year on year, in aggregate amounting to c. US$8m and contributing to a significant improvement in Q1 2017 performance relative to the current year. Although the Company has made good progress in executing the Stabilisation Plan, and fastjet is entering its busiest trading period, additional costs associated with delivering the stabilisation plan, in particular the cost and terms associated with returning leased aircraft being more onerous than previously expected, has placed greater strain on available cash-resources.

"For this reason, as well as allowing the company to pursue possible synergistic opportunities identified by the CEO, the company needs to raise further capital and expects to initiate a fundraising exercise which it plans to complete in Q1 2017."

Fastjet also announces that non-executive chairman Colin Child has resigned from the company Having led the fund raising exercise in July this year he believes that it would not be appropriate for him to continue in this role given the company is initiating, sooner than originally expected, a further fund raising exercise.

Non-executive director Rob Burnham said: "Colin has chaired the Board through a period of considerable organisational change and demonstrated a total commitment to the success of the Company which has been much appreciated by his colleagues."

Child said: "Although the trading and operational environment has been challenging I have much enjoyed my time on the fastjet Board. I leave the Board with an extremely good and experienced CEO in place and I have every confidence that he will successfully complete the Stabilisation Plan and pursue some exciting strategic initiatives that will allow fastjet to deliver its full potential."

Chief executive Nico Bezuidenhout will assume the role of interim chairman pending the appointment of a new non-executive chairman in due course.

In at 100 Out at about 26p a month or so ago not looking good here glad I'm out..

StockMarketWire.com
fastjet is raising at least $48m through a proposed placing and an agreement with Solenta Aviation, a specialist African commercial aviation group based in Johannesburg.

fastjet has entered in to a conditional agreement with Solenta Aviation for the provision and operation of three wet-leased aircraft and the supply of other services over the next five years.

The company has also announced a proposed placing to raise gross proceeds of not less than US$28.8 million through the issue of new ordinary shares at 16.3p apiece.

Under the agreement, Solenta will become a c. 28% shareholder in fastjet.

fastjet has agreed to issue Solenta c. 95.6 million new ordinary shares to acquire a Solenta group SPV that will own the right to enter into the three ordinary course wet-leases and to receive discounts to the value of US$19.2 million on the future cost of services provided by Solenta.

Interim chairman and chief executive Nico Bezuidenhout said: "Our agreement with Solenta represents a good operational and strategic fit. It provides fastjet with access to fleet and related services which, together with the funds raised through our proposed Placing, will allow us to successfully implement the final stages of our Stabilisation Plan. We have made good progress with the Plan and the near-term priority continues to be to fully stabilise the business and to reach cash flow break even by the fourth quarter of this year. As well as helping us to achieve this objective, the fundraising and Solenta Agreement will also provide the platform from which to flexibly and cost-effectively pursue fastjet's medium to long-term objective of becoming the first truly pan-African low-cost airline."

Can FastJet really double, or more? - By Alistair Strang | Tue, 24th January 2017 - 10:17

It has been a few months since we last looked at FastJet (FJET). The price managed to achieve our 13.5p, actually beating it briefly at the open and in the period since, the share has achieved a degree of recovery.

As the chart illustrates, the price has sleepwalked through the downtrend since 2015 and done exactly nothing since. We'd be nervous advocating any near-term rise potentials until such time it starts trading above 19.5p as growth to an initial 24.5p looks about right.

Better still, with closure above 24.5p, there's a strong argument favouring 35p and a period of almost certain stutters.



The chart shows a few previous occasions when the share reached such a level before the trend break occurred, and doubtless selling pressure will slow down any future rise as the folk trapped since June 2016 bail at break-even.

However, we can extrapolate a doubtless distant 65p should the price ever manage to actually close above 35p. Amazingly, this coincides suspiciously neatly with the circled gap.

If trouble is planned, should it find any reason to visit 13.5p again, we'll be inclined to move seats to the upright position, place our head between our legs, and kiss our "a**e goodbye". Bottom is at a best guess 4.1p.

StockMarketWire.com
Operating losses at low-cost African airline fastjet rose to $63.9m in the year to the end of December - up from $37.9m last time.

The group reported a loss after tax of US$48.0m (2015: loss after tax US$21.9m) on revenues up 5% at US$68.5m (2015: US$65.1m).

It said the results in large part reflected decisions in early 2015 to introduce too many new routes, expand the fleet and deploy capacity beyond market demand.

fastjet said its stabilisation plan was addressing these issues and although benefits were already being realised, primarily in cost reduction, the full benefit would only be seen as it progressed through the new financial year.

As a result of the operating loss for the year the group incurred a significant operating cash outflow which resulted in a cash balance at the year-end of US$3.6m (2015: US$28.9m).

Chief executive Nico Bezuidenhout said: "2016 was a challenging year and these financial results reflect not only a difficult market place but also the overly optimistic expansion plan adopted in early 2015.

"Since I became CEO on 1 August 2016 we have successfully initiated a Stabilisation Plan to address the immediate challenges.

"However, although good progress has been made many of the Plan's benefits to reduce our cost base, and match capacity with demand, have naturally taken time to feed through and as such will only be materially realised in 2017.

"Nevertheless, the effects of the Stabilisation Plan in the second half of 2016 saw fastjet withdraw from a number of loss-making routes and remove surplus capacity such that while between July and December, capacity was reduced by 25%, passenger numbers were only down by 3% and revenues rose by 5%.

"The final stages of the Stabilisation Plan are now implemented and the strong progress we have made means that fastjet's cost base will be significantly reduced by the third quarter of 2017 and that we are well on the way to fulfilling our baseline aim of achieving a cash flow break even position by the fourth quarter of 2017.

"Since the year-end, fastjet has completed a US$28.8m fundraising, entered into a strategic and operational partnership with Solenta, and significantly strengthened our Board.

"With these initiatives building on the benefits of the Stabilisation Plan, and although a number of challenges remain, fastjet is now close to being sufficiently stable and well positioned to be able to consider disciplined growth opportunities in our target African markets."

I trust no one on here own's shares in this outfit at the moment?

I don't but think others might.
It has always been a high risk investment imo, but we all make our own decisions.

Absolutely, maybe as a HR trading share.

I've still got a few of these - not worth the selling cost!

Trading Update

30 June 2017

fastjet, the low-cost African airline, is today providing an update on trading for the period from 1 January 2017 to date, ahead of its Annual General Meeting to be held later today.

The Company has made steady progress in implementing stabilisation efforts, including inter alia, a re-fleeting process, relocation of its headquarters from London to Johannesburg and a right-sizing of its operations in Zimbabwe and Tanzania. These steps are having the desired effect and accordingly fastjet aims to achieve a cashflow break-even position for the final quarter of 2017. The Company, aiming to leverage its relationship with Solenta Aviation Holdings, a strategic investor who acquired a shareholding in fastjet in January 2017 and who has an operational footprint in a number of African countries, is in the process of evaluating expansion options to further geographies and looks forward to making further announcements in due course.

The Company also announces that it has, on 29 June 2017, entered into an agreement with easyGroup Holdings Ltd to acquire all intellectual property rights associated with the fastjet brand for a total consideration of $2.5 million, to be satisfied in cash, resulting in saving to the Company over the next 5 years. This agreement represents a major step forward as the Company continues with its stabilisation efforts under new management.

Sir Stelios Haji-Ioannou, who established the fastjet brand in 2012 and founded easyJet in 1995, 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. I feel we have agreed a fair price for its transfer - $2.5m - which is less than what the company would have had to pay over the next five years. I still hold shares worth about £1.3m in the company and as such I will be a supportive shareholder, hoping to realise significant upside potential as fastjet grows and prospers. From the decisive actions thus far taken by the new Management and Board, and early indicative outcomes, I am encouraged that fastjet's direction of travel is now on the right course"

Nico Bezuidenhout, CEO of fastjet, appointed in the latter part of 2016, stated:

"Brand development is an integral part of building a successful consumer facing business and represents a substantial investment for any airline - it logically follows that your brand, an asset to be leveraged for the benefit of Shareholders, should be under your full control and ownership. We are happy to have reached agreement with Sir Stelios and appreciate the ongoing confidence he has expressed in the fastjet business and leadership team."

Fastjet, at the airshow held in Paris last week, was awarded the prestigious Skytrax award as Best Low Cost Carrier in Africa.

Am thinking about buying a few... (not worth putting a stop loss on as trigger will also mean belly up...)

or get taken out on first trading day when buy/sell spread is wide

or get taken out on first trading day when buy/sell spread is wide

I am struggling to think of a good reason to buy into this company. I can think of a shed load of reasons not to!
Just my opinion, but the risks far outweigh the positives.

Pick another airline if you have to HC,

Sleazy a better option inmo

Proposed Fundraising
Highlights:
· The Stabilisation Plan that commenced late last year has been successfully executed with the Company on track to reach its target of cashflow breakeven in Q4 2017.

· The Company has made material progress in the past 12 months placing the business on a substantially more stable platform
o Increased revenue and decreased costs;
o Monthly profitability has been achieved by Tanzanian operations; and
o The Company has had its first cash-flow positive month in Zimbabwe in August 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.

· As a result, fastjet today announces a proposed fundraising to support its growth initiatives by way of an accelerated book build and a subscription to raise gross cash proceeds of not less than US$44m, which is strongly supported by the Company's major institutional shareholders, including Solenta Aviation Holdings Limited ("SAHL") who will increase their holding and become a 29.9% shareholder in fastjet post the fundraising.

· As part of its growth initiatives the Company will enter into a number of agreements to expand into South Africa and Mozambique
o Brand licence agreement with Federal Airlines (Pty) Ltd ("Fedair"), an established profitable airline with a fleet of four owned aircraft, operating 17 aircraft and with a South African air operator's certificate ("AOC"); and
o Brand Licence Agreement with Solenta Aviation Mozambique Ltd ("SAM"), a business currently operating charter services in the Oil and Gas industry within the country and utilising its existing AOC in Mozambique for the launch of fastjet Mozambique.

· fastjet will also enter into an additional agreement giving it access to three ATR 72-600 aircraft for 10 years equipping fastjet with the appropriate aircraft to benefit from these new market opportunities.

· As part of its expansion plans, the Board has also decided it intends to evaluate a dual listing of the Company on the AltX market of the Johannesburg Stock Exchange in the next 12 months.

· The fundraising together with the new agreements will allow fastjet to expand its brand network to now cover South Africa, Mozambique, Zimbabwe, Tanzania and Zambia as well as diversify revenue streams and lay the foundations for future profitable growth in a major step forward in fastjet's long term ambition to become the leading pan African low cost airline.

Interim Results for the six months to 30 June 2017
Highlights
· New executive team; Board reconstituted
· Stabilisation Plan substantially completed; fastjet now well-positioned for targeted geographic expansion
· Losses down 57% year on year
· Negative cash flow from operating activities reduced to US$(21.4m) (2016: US$(25.6m))
· On track to achieve target of cash flow break-even by Q4 17
· On 29 June 2017, fastjet purchased its brand from easyGroup Holdings Ltd for $2.5m


Operational headlines
· Fleet adjustments delivering clear benefits
Ø Revenue per seat up 30% year on year
Ø Load factors up 18% year on year
· Move of fastjet's headquarters from UK to Africa completed
· Growing passenger flows from the Emirates Interline agreement
· Named Africa's Leading Low-Cost Airline 2016 at the World Travel Awards and Best LCC in Africa at 2017 Skytrax World Airline Awards


Commenting on the results, fastjet Chief Executive Officer Nico Bezuidenhout, said: "The first six months of 2017 was both a rewarding and challenging period for fastjet.

"I am pleased with the considerable progress made during the period, with significant cost reductions across the business, the successful migration of fastjet's headquarters from Gatwick to South Africa and a renewed commercial impetus that, as expected, is delivering real benefits. We have focused on successfully implementing the Stabilisation Plan announced a year ago, while simultaneously examining potential commercial opportunities.

"As the Stabilisation Plan was delivered, improvements in distribution, reach and marketing efficiency drove yield and volume, and efficiencies in average fares, distribution channels and currency mix were achieved. This resulted in cost efficiencies and revenue improvement with a 30% increase in revenue per available seat. Average load factors for the period were 65.4%, up from 47.8% in the first half of 2016.

"Our re-fleeting plan is on track and by the end of the year fastjet will have replaced its fleet of A319s with three Embraer E145 and two Embraer E190 aircraft and have launched in at least one new market in the region. fastjet has taken full brand ownership of its trademarks and identity from easyGroup, empowering the business to further mould itself into an Africa-appropriate, relevant and operationally-suited business.

"I am proud of our achievements, which have occurred in a relatively short timeframe. While there remains a lot of work to be done, our initiatives are delivering clear, positive results and we are on track to achieve our target of cash flow break-even by the fourth quarter of this year. Having stabilised the business, we are looking forward with confidence to the next stage of fastjet's development and geographic expansion."

StockMarketWire.com
African budget airline Fastjet trimmed losses in the year through December as costs fell 46% but revenue slumped 32.6% amid a fall in passenger numbers. The company also announced it would tap investors for more funds to shore up working capital for the remainder of the year.

For the 12 months to 31 December, losses before tax narrowed to $24.4m from $67.5m the previous year, revenue fell 32.6% to £46.2m and operating losses were 61% lower at $25.3m compared with $65.6m the previous year.

Revenue per seat rose 30% to $60.9 from $46.9

The firm blamed the fall in total revenue on weaker passenger number, which fell 31% for the year compared to the previous year, as the company nearly halved its capacity as part of its cost cutting programme.

Total costs decreased by 46% to $70.7m from $136.2m.

Fuel accounted for 19% of total costs, while maintenance, reserves and engineering of the aircraft accounted for 8% of costs.

FastJet also said that it would raise at least $10m in a share placement - this comes after the company warned earlier this week that a severe funding crunch may cause it to halt trading.

'In 2017, the successful implementation of our Stabilisation Plan saw us realign our network, withdraw from loss making routes, reconfigure our fleet, migrate the Group's headquarters to Africa, and significantly reduce our cost base. These actions have resulted in a substantially reduced loss for 2017, said Nico Bezuidenhout, fastjet Chief Executive Officer. 'As part of our targeted network expansion strategy, the first fastjet branded flight in Mozambique took off last November and over the next 18 months we have a programme of further measured expansion of services in Mozambique and, subject to appropriate fleet expansion, new services in South Africa.'