Posted on: 25 June 2014
fastjet has signed an agreement to dispose of its holding in Fly 540 Kenya to Don Smith, a director of Fly 540 Kenya, the move wholly removing Fly 540 Kenya from the fastjet group.
All legal and financial ties between the two companies have been dissolved and each group has indemnified one another against any and all liabilities relating to the segregation of the businesses.
Ed Winter, CEO and interim chairman of fastjet, commented, “Following a period of complex negotiations, we are delighted to have achieved a successful outcome for all parties. After a thorough and lengthy evaluation of Fly 540 Kenya, we concluded that converting the business into the fastjet low-cost model would not be economically viable.
“Disposing of our investment in Fly 540 Kenya allows us to pursue our priority objective of creating fastjet Kenya as a new entity which will operate to the same low-cost model, international standards of safety, reliability and punctuality as fastjet Tanzania and utilise the same commercial strategy and distribution platforms. Further information on the company's plans to launch fastjet Kenya will be announced in due course,” Winter confirmed.