Reports in the global airline industry say the low-cost airline company operating in Africa, Fastjet is selling its Ghana business Fly540 for $1.
According to Travel Weekly, “the business incurred a loss of more than $11 million last year with services suspended in May 2014.”
The Proactive Investor indicates that the business was acquired from Lonrho Aviation in July 2012 but has been in mothballs since May 2014, pending a sale or restructuring. It made a loss before tax of $11.3mln in 2014.
Ed Winter, chief executive of Fastjet, was cited in the report as saying the disposal of Fly540 Ghana was a major step forward in Fastjet’s restructuring plan for its legacy businesses.
On June 13, 2012, Lonrho Plc agreed to sell its aviation business, Lonrho Aviation which operates Fly540, to British investment firm Rubicon Diversified Investments Plc for $85.7 million.
The Fly540 airline name was subsequently changed to Fastjet by July 2012 when Rubicon’s shareholders vote on the transaction June 29, at the company’s general meeting.
By Emmanuel K. Dogbevi