FastJet: Sir Stelios Plans West African Venture

FastJet: Sir Stelios Plans West African Venture

15 Jets to link six West African countries to Accra Ghana, future expansion into the rest of Africa to create an "African EasyJet"

Sir Stelios Haji-Ioannou is planning to launch his new airline venture in west Africa in the coming months with up to 15 jets in what may eventually become an African version of EasyJet, the UK low-cost carrier he founded.

Sir Stelios is poised to report the results of a feasibility study run by his EasyGroup management team for Rubicon, a cash shell which raised £9m in a December placing to fund the launch of the airline, to be called Fastjet.

FastJet: West African Venture

The study is expected to recommend that Fastjet link about six west African countries to Accra, the Ghanaian capital. Two people familiar with the study said that up to 15 aircraft could be leased initially. If successful, Fastjet will eventually expand across Africa, they added, to become the first pan-African low-cost carrier.

“There’s a very serious plan to make Rubicon into a very serious low-cost carrier,” said David Lenigas, a Rubicon board member and chairman of Lonrho, the pan-African conglomerate.

“One of the attractions is that west Africa is very poorly served other than with national carriers that don’t have the proper models to do regional low-cost service,” said Geoffrey White, Lonrho chief executive and also a Rubicon board member. “The initial assumption could look to have 5m passengers a year passing through Ghana.”

Lonrho owns a 12.7 per cent stake in Rubicon and also runs Fly540, a low-cost airline that operates regionally in east Africa and domestically in Ghana and Angola.

“There’s probably going to be an association with Fly540 in Ghana and it will make the whole thing bigger and a whole lot better,” said Mr Lenigas.

Rob Burnham, chairman of Rubicon, said there was space for collaboration with Fly540 but cautioned against suggestions of a reverse takeover on grounds that the airline did not have a jet fleet. “That doesn’t fit with our long-term plans, but Fly540 does operate in Ghana and it does have some infrastructure that could be of use for us in launching this.”

On speculation that Fastjet could rapidly expand throughout the whole of Africa, Sir Stelios tried to damp down expectations. “The concept works best on short flights of about one to two hours,” he told the Financial Times. “This company has to learn how to walk before it can run.”

Sir Stelios said that he has not yet decided whether he will invest directly in Rubicon. Earlier reports suggested that Sir Stelios was planning on making a $500m investment in Fastjet.

In December, Rubicon received exclusive branding rights for Fastjet from EasyGroup for 12 months in exchange for a payment of £480,000, a 5 per cent stake in the company and further royalty fees.

A day ahead of a much anticipated showdown over bonus pay with EasyJet executives, Sir Stelios said that Fastjet would not violate the terms of his non-compete agreements with EasyJet. “Even if it is still in force, it has a very narrow restriction in time and geography,” he added. 

Source Financial Times

Email Us at FlightAfricablog@gmail.com

Stelios and Lonrho Group take over Fly540

Stelios and Lonrho Group take over Fly540

 You gotta love Wolfgang Thome's coverage of East African aviation boardroom intrigues :)  ::

It was learned over the weekend that a new ownership has emerged at Fly 540 Aviation, when Lonrho with their new partners Sir Stelios compelled the other existing shareholders to sell – in the face of whatever evidence they were confronted with – taking full control of East Africa’s first LCC.

Previous Co-CEO Don Smith predictably had to leave Fly 540, and it is understood that no tears were shed by anyone over this, while Neill Steffen, the other Co-CEO and previously more engaged in other Fly 540 operations in other parts of Africa, will return full time to Nairobi to take charge of the airline.

Only a week ago were news broken on the WolfganghThome blog of these developments being imminent, bringing forth the wrath of those exposed a shade too early for their own clandestine taste, but with this latest confirmation now at hand, it is once again clear that the story broken then was entirely correct and that the anger of those now departed has departed with it.

It was confirmed that Don Smith will be moving over to East African Safari Air Express, a company ostensibly taken over by Fly 540, in retrospect not the case as it was taken over by one individual. EASAX is now awaiting a Kenya Civil Aviation Authority licensing hearing to learn about the fate of their application for an air service license, something which will probably meet with objections from other airlines but that will be another story to be told right here when the time comes.

Another piece of information which emerged from the weekend information flow was that what was thought to have been Fly 540’s own maintenance facility at Wilson Airport was apparently also owned by the now former CEO Don Smith, which if correct would be a clear sign of longer term intent, to be ready when the day would inevitably come that the other shareholders, those with the money that is, could no longer to be duped and would come knocking at the door with strong men in attendance, figuratively speaking of course. Whether, as has been rumoured, that MRO has charged Fly 540 over the top for maintenance, cannot be confirmed but a forensic audit could possible shed some light on this piece of the equation, should the new bosses at Fly 540 wish to pursue the matter further.

The new owners seem set to roll out an ambitious fleet development programme to turn their vision finally into reality, no longer held back by internal elements with their own hidden agenda, and will in coming months turn into what is expected to be a purely jet airline, operating regional flights and the city pairs to Kisumu, Malindi and Mombasa. Watch this space as the Fly 540 saga enters a new phase with new owners, refreshed management and the deep pockets to make things happen. 

Email Us at FlightAfricablog@gmail.com

Speculation Growing Over EasyJet's Stelios Involvement on African LCC

Speculation Growing Over EasyJet's Stelios Involvement on African LCC

Over the past weeks was speculation growing in Eastern Africa about a potential involvement by former EasyJet’s top executive Stelios Iannou, said to consider joining hands with Lonrho to develop and implement a viable low cost carrier model for Africa, using jet aircraft to connect major cities on the continent.

Stelios

While some efforts have been made in recent years to establish local LCC’s, this concept has not taken root as was expected and the financial strength of such Pan African airlines like Ethiopian or Kenya Airways have successfully held against such competition by setting fare levels on key routes to not just match their competitors but actually offer lower fares, while at the same time using their frequent flyer programmes to ensure brand loyalty through reward schemes the LCC’s do either not have or do not as effectively use.

Information obtained points to a possible signing of a deal next week, which could be held either in the UK or a select location in Africa, possibly Nairobi, as the East African aviation market could be the first to be targeted by a new airline set up.

Regional aviation stakeholders expressed surprise when contacted over this potential development and were swift to point to the cut throat operating environment which exists in the East African skies claiming almost in unison ‘this is not Europe, any newcomer will find the going here very tough, very competitive and very challenging’. Adds this correspondent in closing that this will indeed be the case, as past failures amply demonstrate, though Stelios and Lonrho combined will undoubtedly try to re-write aviation history and duplicate European successes in Africa, supported by deep pockets and a vision backed up by long experience.

Post Courtesy

Email Us at FlightAfricablog@gmail.com

FastJet: Stelio's EasyGroup to Establish a new Low Cost Airline in Africa

FastJet: Stelio's EasyGroup to Establish a new Low Cost Airline in Africa

There is a reason for Africa to smile; it's recent economic successes in the last 5 years are not going unnoticed and now EasyJet Founder, the British Billionaire Stelios Haji–Ioannou is planning to launch a new low cost airline in Africa under the FastJet brand. There are no details on this yet.

Stelios

Mr. Haji-Ioannou's easyGroup, which runs ventures from car hire, cybercafes, hotels and gym membership, is to invest in Rubicon Diversified Investments PLC, a former software company that has now entered the aviation business and will operate the airline under the brand FastJet.

Stelios has had troubles with the airline he founded and even signed an agreement with EasyJet which compels him not establish or acquire interests in any other airline or new airline in the European Economic Zone and Switzerland for at least 5 years in return for $450,000 annually. It's a Steve Jobs like scenario where the founder becomes estranged with a company he founded or with the management of the company he founded. Stelios founded EasyJet in 1995 at the age of 28 with a loan from his shipping magnate father and the company has since grown into one if Europe's largest Low Cost Airlines.

Given that he's locked out of Europe, Africa is clearly the natural choice for Stelios. The continent's key economies are confidently powering ahead with steady growth, more Africans are crossing into the middle class status and air travel and passenger numbers are quickly picking up. Also, the low cost model is not well developed so there's a real golden opportunity in Africa. I think a low cost Pan African outfit would definitely win the market. Currently, most low cost airlines have regional focus in their operations. Fly540, the dominant player in the market services Africa with three hubs in Kenya, Angola and Ghana. South African low cost carriers mostly service South Africa and a few neighboring countries. The rest of the continent is at the mercy of the legacy carriers like Kenya Airways, Ethiopian Airlines, Emirates, South African Airways, Egypt Air, and others.

According to Stelios, "Africa must now represent the final frontier of this aviation revolution which started in the U.S. in the 70s and which I was proud to have led in Europe in the 90s."


Email Us at FlightAfricablog@gmail.com