Zimpapers Logo

Fastjet seeks $75 million to fund its expansion programme

LOW-COST African airline Fastjet plans to raise $75 million through the issue of new ordinary shares at 0.1p a share.

It said last Thursday that the money will be used to fund its expansion programme that involves among others buying an additional Airbus.

“There is a working capital requirement to fund further expansion and the launch and growth of operations in Zambia, Zimbabwe, Kenya and South Africa.

“Fastjet’s Tanzanian operation, which comprises a well-recognised brand name and both domestic and international routes, means that it’s now well placed to further develop its existing operations but the fleet of three aircraft is now almost fully utilised and growth opportunities will require increased numbers of aircraft over the remainder of the year.

“This will enable fixed overhead costs to be further spread over a larger operation,” it said in a statement.

The low-cost carrier has three domestic routes operating in its base country, Tanzania, linking Dar es Salaam with Mwanza, Kilimanjaro and Mbeya, and four international routes between Dar es Salaam and Johannesburg, Harare, Entebbe and Lusaka.

Building on the success of the Tanzanian operation, Fastjet plans to roll out the model across the African continent and has identified five countries — Kenya, Uganda, Zambia, Zimbabwe and South Africa — as key markets for its expansion. — Engineeringnews.