Fastjet PLC Operational Fleet Update (4496L)
03 October 2016 - 5:00PM
UK Regulatory
TIDMFJET
RNS Number : 4496L
Fastjet PLC
03 October 2016
fastjet Plc
("fastjet" or the "Company")
(AIM: FJET)
Operational Fleet Update
03 October 2016
fastjet (AIM:FJET), Africa's low-cost airline, announces that it
has entered into a binding sale agreement with Avtrade Limited, of
its sole owned Airbus A319 (Manufacturer's Serial number 2891). The
consideration is being satisfied in cash for USD8.0 million with a
10% deposit payable on signature of the agreement and the balance
on delivery. The agreement is subject to industry standard
conditions precedent. Included in the agreement is an option to
continue to operate the aircraft from Oct 3 to Oct 17 2016 with a
reduction in proceeds of $200,000 for a usage of up to 100 cycles.
The use of proceeds will be utilised as working capital for the
implementation of fastjet's Stabilisation Plan as outlined in the
Company's interim results announcement.
As previously announced, fastjet is reducing the size of its
fleet and is transitioning its fleet from the existing A319
aircraft to smaller aircraft, a move which is expected to yield an
approximately 15% cost reduction for fuel, maintenance, handling
and navigation charges. The transition from the existing aircraft
to the replacement fleet will initially be arranged through short
term wet leases (aircraft, crew, maintenance and insurance). It is
intended that the wet lease arrangements will be superseded by dry
leases (aircraft only) in H1 2017.
Nico Bezuidenhout, Chief Executive Officer, commented:
"The sale of our Airbus A319 is an important step in our
Stabilisation Plan and our move towards a more appropriate size of
fleet. It's early days but the Plan is progressing well and the
money raised from this sale will be used to drive its continued
implementation."
For more information, contact:
fastjet Plc Tel: +44 (0) 20 3651
6307
Nico Bezuidenhout, Chief Executive
Officer
Lisa Mitchell, Chief Financial
Officer
UK media - Citigate Dewe Rogerson Tel: +44 (0) 20 7638
9571
Eleni Menikou
Toby Moore
Nick Hayns
South African media - Tribeca Tel: +27 (0) 11 208
Public Relations 5500
Cian Mac Eochaidh
Kelly Webster
For investor enquiries please
contact:
Liberum Capital Limited - Tel: +44 (0) 20 3100
Nominated Adviser and Joint 2222
Broker
Clayton Bush
Christopher Britton
Jill Li
W.H. Ireland Ltd.- Joint Tel: +44 (0) 20 7220
Broker 1666
James Joyce
Mark Leonard
NOTES TO EDITORS
About fastjet Plc
About fastjet Plc
fastjet Plc is the holding company of the low cost airline
fastjet which commenced flights under the fastjet brand in Tanzania
in November 2012. By adhering to international standards of safety,
quality, security and reliability; fastjet has brought a new flying
experience to the African market at unprecedented low prices.
Utilising a fleet of modern jet aircraft, fastjet has a long term
strategy to implement the low-cost carrier model across Africa to
become the continent's first low-cost, pan-Africa airline.
The results of the second quarter 2016 customer satisfaction
surveys showed that an average of 73% of customers were likely to
recommend fastjet to a friend. In developing its strong brand and
identity, fastjet has won and been nominated for a number of
awards, including Africa's Leading Low-Cost Airline 2016 at the
23rd World Travel Awards, winning three Transform awards for the
rebrand and launch of fastjet, the award for "Brand Strategy of the
Year" at 2014's Drum Marketing Awards in London, and the Transport
Innovator Award at the 8th Transport Africa Awards 2015 in
Johannesburg.
This announcement contains inside information for the purposes
of the Market Abuse Regulation.
fastjet Plc is quoted on the London Stock Exchange's AIM
Market.
For more information see www.fastjet.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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