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Fastjet secures Nairobi base, but expansion in East and South Africa may be on hold

Analysis

Fastjet has secured its entry into the Kenyan market and its first expansion outside Tanzania and access to the key Nairobi hub by throwing a lifeline to collapsed local carrier Jetlink Express.

The two carriers signed a memorandum of understanding (MOU) on 28-Jan-2013 to create a joint venture allowing fastjet to launch its brand in Kenya in the next few months.

Fastjet launched two domestic routes from Dar es Salaam in Tanzania in Nov-2012 with A319 aircraft, rebranding and refleeting its newly acquired Fly540 operation in the country. The carrier also owns the Fly540 regional operations in Angola and Ghana.

The bigger Kenyan market will provide a strong launch pad for further Eastern African expansion, including the development of links with international carriers which are already being explored.

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