Fastjet in talks to sell Zimbabwean unit

Struggling budget carrier Fastjet says it is in talks to sell its Zimbabwean unit, just days after it was forced to place its operations in Tanzania in to liquidation.

The group's Zimbabwean outfit looks set to be sold to a consortium led by its major shareholder Solenta Aviation for $8 million.

The deal is said to be necessary to keep its planes in the air, warning that if restructuring plans do not pan out by the end of February, it would not be able to continue trading as a going concern.

Fastjet closed its operations to Mozambique on 26 October including flights under its code-share arrangements with LAM Mozambique Airlines.

“Fastjet Zimbabwe has increased its year-on-year revenue despite the difficult trading conditions following the introduction of a new currency which effectively devalued the existing currency by up to 15 times its previous value at official rates and has pushed inflation rates to above 200%,” Fastjet said in a notice on Wednesday.

The disposal would relieve the airline of $5.4 million in current liabilities and will provide $3.2 million for future capital expenditure.