Fastjet PLC Trading Statement (6686J)
30 June 2017 - 4:01PM
UK Regulatory
TIDMFJET
RNS Number : 6686J
Fastjet PLC
30 June 2017
Fastjet Plc
("fastjet" or the "Company")
(AIM: FJET)
Trading Update
30 June 2017
fastjet, the low-cost African airline, is today providing an
update on trading for the period from 1 January 2017 to date, ahead
of its Annual General Meeting to be held later today.
The Company has made steady progress in implementing
stabilisation efforts, including inter alia, a re-fleeting process,
relocation of its headquarters from London to Johannesburg and a
right-sizing of its operations in Zimbabwe and Tanzania. These
steps are having the desired effect and accordingly fastjet aims to
achieve a cashflow break-even position for the final quarter of
2017. The Company, aiming to leverage its relationship with Solenta
Aviation Holdings, a strategic investor who acquired a shareholding
in fastjet in January 2017 and who has an operational footprint in
a number of African countries, is in the process of evaluating
expansion options to further geographies and looks forward to
making further announcements in due course.
The Company also announces that it has, on 29 June 2017, entered
into an agreement with easyGroup Holdings Ltd to acquire all
intellectual property rights associated with the fastjet brand for
a total consideration of $2.5 million, to be satisfied in cash,
resulting in saving to the Company over the next 5 years. This
agreement represents a major step forward as the Company continues
with its stabilisation efforts under new management.
Sir Stelios Haji-Ioannou, who established the fastjet brand in
2012 and founded easyJet in 1995, stated:
"fastjet is a great brand in all its African markets, making it
a highly valuable asset for the company. I have accepted the view
of the current board that the company should own its own brand
rather than licence it from me. I feel we have agreed a fair price
for its transfer - $2.5m - which is less than what the company
would have had to pay over the next five years. I still hold shares
worth about GBP1.3m in the company and as such I will be a
supportive shareholder, hoping to realise significant upside
potential as fastjet grows and prospers. From the decisive actions
thus far taken by the new Management and Board, and early
indicative outcomes, I am encouraged that fastjet's direction of
travel is now on the right course"
Nico Bezuidenhout, CEO of fastjet, appointed in the latter part
of 2016, stated:
"Brand development is an integral part of building a successful
consumer facing business and represents a substantial investment
for any airline - it logically follows that your brand, an asset to
be leveraged for the benefit of Shareholders, should be under your
full control and ownership. We are happy to have reached agreement
with Sir Stelios and appreciate the ongoing confidence he has
expressed in the fastjet business and leadership team."
Fastjet, at the airshow held in Paris last week, was awarded the
prestigious Skytrax award as Best Low Cost Carrier in Africa.
For more information, contact:
fastjet Plc Tel: +44 (0) 20 3651
6307
Nico Bezuidenhout, Chief
Executive Officer
Michael Muller, Chief Financial
Officer
UK media - Citigate Dewe Tel: +44 (0) 20 7638
Rogerson 9571
Eleni Menikou
Toby Moore
Nick Hayns
South African media - Hein Tel: +27 (0) 82 520
Kaiser 0555
For investor enquiries please
contact:
Liberum Capital Limited Tel: +44 (0) 20 3100
- Nominated Adviser and 2222
Broker
Clayton Bush
Jill Li
NOTES TO EDITORS
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 Alternative
Investment Market ("AIM").
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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