The new low-cost African airline Fastjet has announced that it is in negotiations to buy bankrupt South African airline 1time and that it has opened talks with Emirates with a view to a possible partnership.
Fastjet says that the proposed transaction to buy 1time from its parent company, 1time Holdings, would involve the new African low-cost carrier paying a nominal fee for the purchase of 1time and reaching a settlement with the 1time creditors.
Ed Winter, Chief Executive Officer of Fastjet, said: "If this transaction goes ahead - and the timescales are extremely challenging - we would hope to get 1time flying again in time for the Christmas holiday period, when many customers have had their plans dashed by the cessation of 1time services and the subsequent huge increases in fares by competitors. Flights would initially be operated by a number of aircraft from the 1time fleet including McDonnell Douglas MD-82s, MD-83s and MD-87s, but restructuring plans would see a rapid re-fleeting with modern Airbus A319 aircraft.
"The acquisition of 1time would be a complementary strategic fit for fastjet's growth into a pan African low cost carrier and the synergies with fastjet would potentially increase the number of available route networks from South Africa into the rest of Africa. 1time would be rebranded into the fastjet brand and sold through fastjet.com.
"We are working with the South African authorities who, like us, are completely committed to helping the airline industry in South Africa develop for the benefit of all the people. Lower fares mean more economic growth, more jobs and more prosperity and we hope to keep many of the original 1time staff employed. With the co-operation of the shareholders of 1time we can build an airline that will provide a real choice to South Africans, based on the great reputation of 1time and the low cost experience of fastjet.”
Fastjet’s shares were further boosted by the news that it was also in potential partnership talks with Emirates Airline. Winter said in a statement: "Talks are at an early stage but this represents a great opportunity for both parties.”
Fast work for Fastjet
