Fastjet Ends Troubled Fly540 Relationship

Loss-making African budget carrier Fastjet has disposed of Fly540 Kenya, the airline it inherited as part of its acquisition from Lonrho Aviation. Last year Fastjet and Fly540 were involved in a dispute over responsibility for about $4m of debt, but the two parties have now “indemnified one another against any and all liabilities relating to the segregation of the businesses”. Don Smith remains CEO of Fly540 Kenya. “After a thorough and lengthy evaluation of Fly540 Kenya, we concluded that converting the business into the Fastjet low-cost model would not be economically viable,” said Fastjet CEO Ed Winter. Fastjet has just reported as $48m operating loss for 2013, though that figure did not include losses from Fly540 Kenya.

TAGS: Africa
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