fastjet Zambia Ltd has received an Air Service Permit (ASP) from the authorities in Zambia that is a significant step towards launching fastjet operations in Zambia, and gives fastjet Zambia the authority to operate air services to both domestic and international destinations within and from Zambia.
Fastjet has also received permission from the Uganda Civil Aviation Authority to operate flights from Uganda to Juba, Nairobi, Kigali and Johannesburg under "5th Freedom" rights using Tanzanian based aircraft. Once the authorities in the relevant countries provide their approvals fastjet Tanzania will be able to offer flights linking Entebbe with these destinations.
Furthermore, Fastjet has signed an agreement to enable Tanzanian participation in the ownership of fastjet Airlines Limited, its Tanzanian based airline (fastjet Tanzania) that brings the total Tanzanian legal and beneficial ownership of fastjet Tanzania to 51%. As a consequence fastjet Tanzania is expected to benefit from entry into new markets and have greater access to more international African destinations through the various Bilateral Air Service Agreements to which Tanzania is a party.
It has also been announced that the fastjet plc board is in discussions with a number of potential funders, including industry partners and specialist African investors, with a view to investment both at the Group level and at the individual operating company level. The Company is aiming to complete this necessary funding by early in the New Year. This investment is required for each significant phase of expansion including that in Zambia and Uganda, outlined above, as well as its near term working capital.
Ed Winter, Interim Chairman and Chief Executive Officer of fastjet plc, said "We are delighted to have found a suitable structure which allows for Tanzanian participation in fastjet Tanzania, whilst providing the opportunity to raise capital from local Tanzanian investors. This is a positive and logical step in the implementation of our model of local investment and local finance for growth, and will aid in fastjet Tanzania being granted additional rights under Bilateral Air Service Agreements with other African countries on the continent. It is pleasing to see that as a result of Management focus on the regulatory framework, approvals in both Uganda and Zambia have been granted. This is a very significant step along the road to becoming a truly pan African Low Cost airline.