Fastjet PLC Operational Fleet Update (4496L)

TIDMFJET

RNS Number : 4496L

Fastjet PLC

03 October 2016

fastjet Plc

("fastjet" or the "Company")

(AIM: FJET)

Operational Fleet Update

03 October 2016

fastjet (AIM:FJET), Africa's low-cost airline, announces that it has entered into a binding sale agreement with Avtrade Limited, of its sole owned Airbus A319 (Manufacturer's Serial number 2891). The consideration is being satisfied in cash for USD8.0 million with a 10% deposit payable on signature of the agreement and the balance on delivery. The agreement is subject to industry standard conditions precedent. Included in the agreement is an option to continue to operate the aircraft from Oct 3 to Oct 17 2016 with a reduction in proceeds of $200,000 for a usage of up to 100 cycles. The use of proceeds will be utilised as working capital for the implementation of fastjet's Stabilisation Plan as outlined in the Company's interim results announcement.

As previously announced, fastjet is reducing the size of its fleet and is transitioning its fleet from the existing A319 aircraft to smaller aircraft, a move which is expected to yield an approximately 15% cost reduction for fuel, maintenance, handling and navigation charges. The transition from the existing aircraft to the replacement fleet will initially be arranged through short term wet leases (aircraft, crew, maintenance and insurance). It is intended that the wet lease arrangements will be superseded by dry leases (aircraft only) in H1 2017.

Nico Bezuidenhout, Chief Executive Officer, commented:

"The sale of our Airbus A319 is an important step in our Stabilisation Plan and our move towards a more appropriate size of fleet. It's early days but the Plan is progressing well and the money raised from this sale will be used to drive its continued implementation."

For more information, contact:

 
 fastjet Plc                          Tel: [phone] 
                                       6307 
 Nico Bezuidenhout, Chief Executive 
  Officer 
  Lisa Mitchell, Chief Financial 
  Officer 
 
 UK media - Citigate Dewe Rogerson    Tel: [phone] 
                                       9571 
 Eleni Menikou 
 Toby Moore 
 Nick Hayns 
 
 South African media - Tribeca        Tel: [phone] 
  Public Relations                     5500 
 Cian Mac Eochaidh 
 Kelly Webster 
 
 For investor enquiries please 
  contact: 
 
 
 Liberum Capital Limited -      Tel: [phone] 
  Nominated Adviser and Joint    2222 
  Broker 
 Clayton Bush 
 Christopher Britton 
  Jill Li 
 
 W.H. Ireland Ltd.- Joint       Tel: [phone] 
  Broker                         1666 
 James Joyce 
 Mark Leonard 
 
 

NOTES TO EDITORS

About fastjet Plc

About fastjet Plc

fastjet Plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at unprecedented low prices. Utilising a fleet of modern jet aircraft, fastjet has a long term strategy to implement the low-cost carrier model across Africa to become the continent's first low-cost, pan-Africa airline.

The results of the second quarter 2016 customer satisfaction surveys showed that an average of 73% of customers were likely to recommend fastjet to a friend. In developing its strong brand and identity, fastjet has won and been nominated for a number of awards, including Africa's Leading Low-Cost Airline 2016 at the 23rd World Travel Awards, winning three Transform awards for the rebrand and launch of fastjet, the award for "Brand Strategy of the Year" at 2014's Drum Marketing Awards in London, and the Transport Innovator Award at the 8th Transport Africa Awards 2015 in Johannesburg.

This announcement contains inside information for the purposes of the Market Abuse Regulation.

fastjet Plc is quoted on the London Stock Exchange's AIM Market.

For more information see www.fastjet.com

This information is provided by RNS

The company news service from the London Stock Exchange

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October 03, 2016 02:00 ET (06:00 GMT)