Entrepreneur Sir Stelios Haji-Ioannou has increased his stake in the no-frills African airline Fastjet.
Haji-Ioannou, who remains Easyjet’s biggest shareholder, has taken his shareholding in Fastjet from under 3 per cent to 5.81 per cent through the issue of new shares to his investment vehicle Easygroup.
Fastjet is currently flying in Tanzania but plans to begin operations to South Africa “imminently” with the aim of eventually becoming the first pan-African no-frills airline.
Haji-Ioannou, who owns the rights to the Fastjet brand, has leased the name to the company and also acted as a consultant in the setting up of the airline, which launched in November.
“When we signed the original agreement a year ago, the company had very little other than a vision to start operating a proper low-cost airline in Africa,” said Haji-Ioannou.
“The roll-out of this embryonic operation from Tanzania to the rest of Africa will clearly take both time and more investment. I have faith that the extensive airline experience of [Fastjet CEO] Ed Winter and his management team will take the company to the next level.
“There is only one continent on earth where low air fares are not widely available yet. I believe Fastjet is now well placed to capture this final frontier. I will be watching their progress with great interest.”
The Easyjet founder has increased his Fastjet stake instead of receiving royalty and consultancy payments he is owed by the airline.
Winter added: “We are pleased that Stelios has chosen to increase his holding in the company, a testament to his confidence in Fastjet's success and faith in the low-cost airline model he pioneered.
“Fastjet values its relationship with Stelios as a shareholder and brand licensor, and also for the unparalleled low-cost airline experience he brings as a consultant to the company.”
fastjet.com