fastjet pushes ahead with African expansion in 2013, but faces protectionist hurdles

fastjet is pushing ahead with expansion plans to create a pan-African low-cost carrier network, adding two more routes to its Tanzania domestic network in Mar-2013, applying to operate its Fly540 between Dar es Salaam and Johannesburg and continuing to negotiate a deal to buy South African LCC 1time from its liquidators.

London Stock Exchange-listed fastjet will launch daily services to Kilimanjaro to Zanzibar and Mwanza on 18-Mar-2013, increasing its network by 50%. The carrier launched in Nov-2012 with two routes from Dar es Salaam to Mwanza and Kilimanjaro.

fastjet acquired the Fly540 aviation business of British-based African-focused investment firm Lonrho in Jun-2012, including its operations in Kenya, Tanzania, Angola and Ghana. The Fly540 operation will be progressively rebranded as fastjet and adopt its hybrid LCC model. The carrier has a licensing and consulting agreement with easyjet-u2" title="More information on easyJet">easyJet founder Stelios Haji-Ioannou's easyGroup, which also holds a 5% stake in the company

The carrier is, however, dealing with a raft of claims relating to the troubled takeover of Five Forty Aviation operations ranging from outstanding debts, including unpaid aircraft leases, airport fees, bank guarantees and taxes.