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Ghana’s Starbow plans international expansion ahead of Fastjet launch

Analysis

Ghana's Starbow is preparing to launch in Jul-2012 short-haul international services with its existing fleet of BAe 146s and is aiming to add medium-haul flights in 2013 after it takes delivery of A319s or Boeing 737-700s. The expansion will result in intensifying expansion in the fast-growing Ghanaian market as LCC Fly540 Ghana similarly looks to launch international routes from its Accra hub under the new brand Fastjet and under its new partnership with easyGroup, the latest project of easyJet founder Sir Stelios Haji-Ioannou. Both Starbow and Fastjet have ambitions to establish a franchise of LCCs or hybrid carriers throughout Africa, an underserved region the two groups believe are poised for explosive intra-regional growth through the stimulation of low fares and introduction of high frequency reliable service.

Starbow launched services in Sep-2011 and currently operates three domestic routes connecting Ghana's capital Accra with Kumasi, Takoradi and Tamale. Fly540 Ghana launched services in Nov-2011 and operates on the same three routes. While Starbow's current fleet is significantly larger, with four BAe 146s compared to Fly540 Ghana's single ATR 72, both carriers operate relatively similar schedules.

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