- Company announces appointment of Mr Lawrence Masha its first executive chairman, the strongest indication yet of a plan to disengage from Fastjet Plc.
- Fastjet Tanzania has over its six years of operations carried more than 2.5 million passengers in Tanzania alone.
Dar es Salaam
Fastjet Tanzania has signalled its intention to disengage from its parent company in the UK to become a fully locally owned airline.
The company on Tuesday, November 6, 2018, announced the appointment of Mr Lawrence Masha its first executive chairman, the strongest indication yet of the plan to disengage from Fastjet Plc.
The appointment of the former cabinet minister who is also a minority shareholder in the airline is one of the planned interventions to steady the airline from operational crosswinds.
Fastjet Plc. CEO Nico Bezuidenhout recently issued a red alert on the company over mounting debts and inability to fund day-to-day operations.
He said they were considering closing the Tanzania operations should shareholders not urgently pump in more liquidity.
Fastjet Plc announced half-year operational loss of $14.6 million (over TSh33 billion, Ksh1.47 billion) in June as opposed to $13.2 million over the same period last year.
The company planned to raise $44 million (Over TSh100 billion, Ksh1.95 billion) last year September but only managed $28 million.
The airline’s majority shareholders feel it was untenable to continue bailing out the loss making company.
Fastjet Plc operations are anchored in Tanzania from where it flies to a few countries but has recently struggled to get enough traffic while regulatory bottlenecks have delayed plans to scale down operations by deploying the cheaper and efficient ATR aircraft.