Fastjet closer to launch

Rubicon, the investment company that has pledged to back Sir Stelios Haji-Ioannou’s plan to set up an African low-cost airline called Fastjet, has raised £9 million through a placing that was approved at a shareholder meeting on Wednesday, along with last month’s agreement to explore African aviation sector opportunities between the company and Sir Stelios’s easyGroup.
Under the agreement, Rubicon will receive exclusive branding rights to fastjet.com from EasyGroup for 12 months in exchange for a payment of £480,000, a 5% stake in the company and further royalty fees.
Shareholders also approved the appointment to the board of David Lenigas and Geoffrey White, respectively chairman and chief executive of Lonrho, the Africa-focused conglomerate. Lonrho, which already runs an airline in Africa, has bought a 12.7 per cent stake in the company.
“We are not planning to create world war three with Easyjet, but there is space in the sky for another airline,” Lenigas said.
Under the terms of the agreement with easyGroup, Rubicon would have 12 months to either take delivery of a “western-standard jet aircraft” or complete a reverse-takeover of another company.