Fastjet: good and bad news

Fastjet is the new pan African low cost carrier backed by Easyjet’s Sir Stelios Haji-Ioannou.

The Good news:
1. their Tanzanian business is profitable, achieving $81 of revenue per passenger in June, 2013 – almost double that in January when it was $46. First quarter losses of $9.1m for the Tanzanian business were cut to $4.2m in the second quarter.
2. Their legal issues seem resolved
3. Permission for their first international flight from Dar es Salaam to Johannesburg is close.

The bad news is that the airline has burned through almost all of its cash. The directors warned that finance is needed to ensure the carrier’s future is certain.

I am still hoping they can make it but the airline needs many more bits of good news before their future looks strongly positive. Interestingly, Sir Stelios Haji-Ioannou has not yet flown Fastjet.

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