African no-frills carrier Fastjet has taken a step towards buying South African airline 1 Time from its creditors.
Fastjet, which has been backed by Easyjet founder Sir Stelios Haji-Ioannou, began flying in November with the launch of domestic flights within Tanzania.
The new company wants to become a pan-African no-frills carrier and announced today (March 18) that it has signed a letter of intent with the liquidators of 1 Time, which collapsed in November.
Fastjet said the move was “a major step towards the acquisition of 1 Time and the launch of Fastjet flights in South Africa”.
CEO Ed Winter said: “Fastjet is really excited about the opportunity to serve the South African air travel market and this is a very significant step towards making that a reality.”
But the company added in a statement: “Whilst 1 Time remains firmly Fastjet's preferred route, the low-cost carrier continues to explore alternative partnerships to launch Fastjet in South Africa which will be available if a satisfactory compromise cannot be negotiated with the 1 Time creditors.”
Fastjet chairman David Lenigas said earlier this month: “Airfares in South Africa appear to have skyrocketed since 1 Time ceased flying at the end of last year, and many planes are operating full to capacity on the key Cape Town and Durban routes.
“We will also be seeking high-level meetings with the aviation authorities to allow Fly 540 Tanzania to operate daily services from Dar es Salaam in Tanzania to Johannesburg.”
Fastjet last year purchased Lonrho’s aviation business, which currently flies under the Fly 540 branding, with operations in Kenya, Tanzania, Angola and Ghana.
But Fastjet’s plans to expand into Kenya have been sidetracked by a legal dispute with Don Smith, the former owner of the Fly 540 operation in the east African country.