Fastjet PLC FJET Operational Update

  Fastjet PLC (FJET) - Operational Update

RNS Number : 7468R
Fastjet PLC
22 November 2012






22 November 2012



                                      

                                 fastjet Plc

                         ("fastjet" or the "Company")

                                      

                              Operational update

                                      

fastjet, the first pan African low-cost carrier, today announces that ahead of
flight operations scheduled fornext week, the airline's first branded  Airbus 
A319 has arrived at  its base in  Dar es Salaam,  Tanzania. Full approval  to 
operate the  aircraft has  been  granted to  fastjet  by the  Tanzanian  Civil 
Aviation Authority (TCAA).



Two more fastjet-branded A319s are planned to be en route early next week,  to 
be in Dar  es Salaam in  time for  the airline's first  flight, scheduled  for 
Thursday 29^th November.  fastjet's team of  35 pilots, 65  cabin crew and  7 
maintenance specialists  are  already on  the  ground actively  preparing  for 
launch.



In a little over a week since tickets went on sale, fastjet has already  taken 
over 8,000 bookings on the  first two routes; enough  to fill over 60  A319s. 
The fastjet.com web site received over 20,000 hits in its first4 days and the
mobile site is now live.



Commenting on the significant progress, fastjet chairman David Lenigas said:



"As expected, plans  for fastjet's  official launch of  operations are  moving 
ahead right on schedule  and we are  delighted with the  level of interest  so 
far. Demand for seats is high and we  are in great shape to start flying  next 
week. We are delighted to have such a solid foundation to build upon."



Further to  the Company's  announcement on  24th July  2012, fastjet  has  now 
formally entered into the  £5 million Equity  Financing Facility ("EFF")  with 
Darwin  Strategic  Limited  ("Darwin"),  the  majority  owned  subsidiary   of 
Henderson Global Investors' Alphagen Volantis fund.



The EFF covers a three year period. The subscription price of any draw down on
the EFF will  be at  a 5%  discount to  an agreed  reference price  determined 
during 15  trading days  immediately following  the delivery  of a  draw  down 
notice. Any exercise  of the draw  down shall  have a volume  commitment of  a 
minimum of four times the average daily volume traded in fastjet shares during
the 15 days prior to activation, subject to certain restrictions.



As part of the EFF the Company  has issued a warrant instrument for Darwin  to 
subscribe for up to 2,000,000 ordinary shares, such warrants exercisable  over 
a three year period at a subscription price of 5.3p per ordinary share.



                                   - Ends -





For further information please contact:



fastjet Plc
Tel: +44 (0) 20 3651 6355

Ed Winter

David Lenigas

Richard Blakesley

Geoffrey White



Citigate Dewe Rogerson Tel: +44
(0) 20 7638 9571

Angharad Couch

Sally Marshak

Eleni Menikou



W.H. Ireland Ltd. Tel:
+44 (0) 20 7220 1666

James Joyce

Nick Field

NOTES TO EDITORS

About fastjet Plc

fastjet Plc is the holding company for African airline Fly540, which operates
from four bases in Kenya, Tanzania, Ghana and Angola. Fly540 currently has 10
aircraft serving around 25 domestic and regional destinations, carrying
approximately 750,000 passengers per year with a strong emphasis on safety,
security and reliability.

Following  a   consultancy  assignment   by   easyJet  founder   Sir   Stelios 
Haji-Ioannou's easyGroup focused on determining the feasibility of launching a
European-style low-cost carrier in Africa, we are now preparing for the launch
of fastjet, Africa's  first low-cost  carrier, flying  a modern  fleet of  jet 
aircraft based on the  Fly540 platform of licences  and routes. First  flights 
under the fastjet brand  are expected to take  place in November, bringing  an 
entirely new flying experience to the African market.

fastjet Plc  isquoted on  theLondon Stock  Exchange's AIM  market. For  more 
information see www.fastjet.com

Significant African Aviation Market Potential

Africa is a growth aviation market with regional and intercontinental  traffic 
both growing  rapidly  as  a  result of  the  continent's  continued  economic 
expansion.  With  over  one  billion  people,  Africa  is  hampered  by  poor 
infrastructure, a lack of roads and railways and long distances between  urban 
populations. The African  aviation market is  significantly underserved  with 
air travel  spending as  a  percentage of  GDP a  fraction  of that  of  other 
emerging markets. With rapid  economic growth and, as  a result, the  growing 
wealth of African citizens, more and more people will be able to benefit  from 
aviation and fly for the first time. Airbus forecasts total passenger  traffic 
in Africa will grow at an average  yearly rate of 5.7% between 2010 and  2030, 
well above the 4.8 per cent  world average growth rateand expects to  deliver 
more than 1,100 new passenger aircraft, 4% of world deliveries, in the next 20
years to satisfy growing  demand. Seven of the  top 10 fastest growing  global 
economies are now in Africa with consumer spending for the continent  forecast 
to reach  US$1.6 trillion  by  2020. A  recent  McKinsey report  (June  2010) 
forecast  that  128  million  households  in  Africa  are  expected  to   have 
discretionary income to spend by 2020,  while 50% of Africans are expected  to 
live in cities by the same date  with urban jobs bringing rising incomes.  The 
McKinsey report concluded that today the rate of return on foreign  investment 
in Africa is higher than in any  other developing region and that early  entry 
into African  economies provides  opportunities to  create markets,  establish 
brands, shape industry structure, influence consumer preferences and establish
long-term relationships.

The Low-Cost Airline Model

The low-cost airline model seeks to attract large numbers of additional
passengers by offering significantly lower fares. The fares need to be low
enough to persuade people who did not previously travel by air to do so, and
others to travel more often. The global experience of launching a low-cost
carrier is that it creates a completely new market rather than a
redistribution of market share in the existing market.





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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