Angola

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 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.

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

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.

African airline start-ups hold the key to unlocking the continent’s riches

Africa’s potentially rich aviation pickings are attracting a new breed of start-ups. Some, like Starbow and FastJet, have ambitions to develop pan-African networks through franchise models. Others, including Africa World Airlines and Korongo Airlines, are focused on their domestic markets and regional services to neighbouring states. Yet a third grouping, led by ECAir, have established inter-continental operations.

While several of the start-ups are backed by their respective governments, it is notable that the strongest contenders are either largely or wholly privately owned and funded.

This new generation of carrier could provide the answer to Africa’s lack of domestic and intra-continental air services by increasing route options, lowering fares and making air travel affordable to the growing middle class.

Aviation enjoys a natural advantage as a means of connecting cities, where most of Africa suffers from poor or non-existent ground transport infrastructure.

Delta continues macho expansion with high-risk 'strategic' capacity moves

Delta Air Lines continues to expand its network adding new city pairs, as well as service on existing routes. Some of the service is seasonal and much of it will only be implemented in 2011, but the roll-out of additional service is impressive.