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22-Jul-2016 9:08 AM

fastjet outlines revised business plan, prioritises short-term stabilisation

fastjet stated (21-Jul-2016) its revised business plan prioritises initiatives to stabilise the business in the short term, including continued cost reduction, careful management of cash resources, rationalising routes to match capacity with demand and reducing expansion. The airline does not expect to commence any new routes for the remainder of 2016. The carrier will also employ, "A more flexible approach to the traditional low cost carrier model." The airline said improvement in cost management requires better alignment of its infrastructure and fleet to its stage of development and ensuring overheads are appropriate for the size of its operations. The airline's board and CEO-designate Nico Bezuidenhout identified opportunities to stabilise the business and address many of the challenges it faces. Measures include a review of fleet size and aircraft type, routes operated, revenue generation initiatives and relocation of its head office to Africa. Mr Bezuidenhout will initiate a review of the business upon joining the company in Aug-2016. The carrier expects to complete its existing cost cutting programme and initiate a second phase by 4Q2016. The airline expects further route rationalisation and will make a fleet announcement in 4Q2016. The company is targeting cash flow break even by the end of 2017 and maintains its medium to long-term strategy of becoming a pan-African LCC. [more - original PR]

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