Fastjet Share Discussion Threads

[albert3591] 18/3/2016 19:09

Only finished down about 17%,mms still trying to keep bottom feeders interested.

[albert3591] 18/3/2016 19:04

Why so much grouching everyone knew this would be a no hoper,wheres tailwagger today?His tail must be well between his legs.

[pugugly] 18/3/2016 16:06

?? Stelios clearing the decks for action ??

Directorate Change rns as at 18/03/2016 3:38pm


fastjet today announces that Tim Ingram, easyGroup Holdings Ltd's representative on the Board of fastjet, has resigned with immediate effect.

[zcaprd7] 18/3/2016 11:23

Colin is no muppet, and this is a direct attack on him and fastjet, as for chairman. "The new Chairman of the Board of Fastjet PLC has extensive experience in the financial field and is broadly seen as a valuable addition on board level to keep the company, which has been making losses since its inception, on the straight and narrow. Trained as a Chartered Accountant he has extensive knowledge of international growth businesses and more than 20 years' experience as a director of listed companies including, most recently, as Group Finance Director of De La Rue Plc from 2010 to July 2015. Colin was also a Non-Executive Director at Rank Group Plc from 2011 to March 2014 where he was Chairman of the Audit Committee and Nominations Committee as well as the Senior Independent Director. Colin's previous roles include Group Finance Director of DTZ Holdings plc, Stanley Leisure plc and Fitness First Plc.

[boonkoh] 18/3/2016 11:15

Definitely just mind games from Stelios. To drive down share price so he can get even deeper discounted equity fundraising. Or maybe he's planning a takeover and wants the share price as low as possible. Either way, Fastjet are in trouble. They will have to concede something to Stelios.

[zcaprd7] 18/3/2016 10:56

That's a lovely letter for the departing CEO to read!Not sure what the end game us here now?

[mike111d] 18/3/2016 09:01

So now cash and management resources are to be diverted into this matter, cannot see it ending well IMO.

[abergele] 18/3/2016 08:54

What worried me firstly was when news broke days ago about the egm,
that the cash required to buy/pay for future fuel for the aicrafts with rising oil, was prices making dearer purchases of futures...

[clocktower] 18/3/2016 08:50

"2.You provide us with a detailed month by month cash flow forecast for the next six months including load factors and average ticket prices by month. This information we will obviously keep confidential but we expect a monthly update of the cash flow forecast including comparisons of forecast vs actuals on the 5th Business Day of each month."

So he wants to keep it confidential - if he gets his way but "F" every other holder.

[salpara111] 18/3/2016 08:34

Basically they are flying almost empty planes so the death spiral quickens.
To think that I almost bought into this in a big way when it had dropped to "just 2.5p" in old money. It looks like 2.5p may be achieved again in the not too distant future.
I cant see a way out for them if they really are flying nearly empty planes, they must be bleeding cash.

[abergele] 18/3/2016 08:33

I'm a shareholder,and sick reading the letter,,,
but the wording of the contract to him(Stelios) is banged up to rights of the law of such..under his contract they hav'nt told him the details of the monthly passenger loads...imho

[sideshowbull] 18/3/2016 08:25

Leaking a letter like that is down right dirty.

[taurusthebear] 18/3/2016 08:13

Disagree, to the extent that Fastjet have a right to update the market on their load factors Dar-Nai. Two bads don't make a good, but it explain SSHI's exasperation.. :0)

[still waiting] 18/3/2016 08:10

at least they're giving you time to get to the exits.

[duxy786] 18/3/2016 08:00

Sir Stellios is wrong that letter should have been kept confidential. It seems eadyjet is deliberately bresking down the share price only to buy out the remaining 87.5% of the company for free. On that basis, shareholders are screwed as others have stated above

[datait] 18/3/2016 07:39

Its all downward from here folks not looking good at all, crash landing coming.

[jonc] 18/3/2016 07:38

Equity value nil.

[someuwin] 18/3/2016 07:31

From ShareProphets...

Fastjet (FJET) has today threatened legal action against Sir Stelios Haji-Ioannou after he published an open letter to the company suggesting it is heading for insolvency and revealing alarming data on load factors garned from "secret shopping" which Fastjet has bee hiding from investors. Naturally I agree completely with the analysis of Sir Stelios. His letter is below:


Dear Sirs

As you know we, easyGroup, own the "fastjet" brand and the URLs which we consider to be valuable in its own right regardless of the value of the Licensee company. We refer to the "fastjet.com" brand licence made between us dated 3 May 2012 as amended (the "Brand Licence"). Words and expressions defined in the Brand Licence shall bear the same meaning when used in this letter. This is a formal notice served pursuant to clause 24 of the Brand Licence.

Further to the Licensee's trading update to the stock exchange by RNS on the 7th of March 2016, and the house broker's research note published on the 8th of March 2016 (Liberum), we are concerned about the risk of an "Insolvency Event" of the Licensee in next few months.

According to the Liberum estimates the loss for Financial Year ended Dec 15 was US$35m and the cash on the balance sheet at the year end was US$28m. The loss for FY 2016 was forecast by Liberum to be US$20m. The headroom and the margin for error in these cash flow forecasts is already very small . Our recent mystery shopping trips on the route between Dar and Nairobi in early March have revealed load factors of about 10-15% ( the percentage of seats on the plane occupied). Moreover it appears to be one fixed price for every seat on every flight which explains the low load factors and is at odds with best airline practice and arguably in breach of clause 5.1.1 of the Brand Licence. We also discovered that the ticketing offices in Dar do not accepted credit cards as a method for payment for the ticket which must reduce demand and again explain the low load factor. On the basis of the accelerated cash burn because of the low load factor and the fact that we are already three months into the financial year so the cash balance will now be lower than the one in the Liberum note, we are worried that you might not be able to pay your debts in the next few months.

We are also concerned that the unilateral action by Ed Winter about 4 months ago to stop publishing to the stock market the monthly passenger statistics and load factors is in breach of Clause 15.4 of the Brand Licence which states : "…The Licensor expects a minimum level of transparency in the Licensee's reporting in order to allow the continuous policing of the Licensed Activities…"

As you are aware, under clause 22.2.3 of the Brand Licence the Licensor is entitled to terminate the Brand Licence immediately upon an Insolvency Event. Clause 22.2.3 of the Brand Licence states : "if any step, application, order, proceeding or appointment is taken or made by or in respect of that other party for a distress, execution, composition or arrangement with creditors, winding up, dissolution, administration, receivership (administrative or otherwise) or bankruptcy, or if that other party is unable to pay its debts or if any event occurs which, under the applicable law of any jurisdiction to which it is subject, has an effect similar to that of any of the events referred to in this clause 21.2.3(or2) (an "Insolvency Event")."

We are obviously concerned to protect the Marks and the Domain Names were an Insolvency Event to occur. If the Licensee is unable to pay its debts and the flights are grounded then many customers who have pre-paid for their tickets will lose their money and that will damage our brand. If the Licensee is expecting to be unable to pay its debts in the near future, then we would demand as the Licensor that an orderly pre-announced cancellation of future flights occurs and a refund of advance bookings to customers be made whilst the Licensee has sufficient funds.

Due to the above, we therefore require the following:
1.You publish immediately the load factors and passenger numbers for each of the missing months since the discontinuation of the practice and that you resume publishing these statistics on the 5th Business Day of each month;
and
2.You provide us with a detailed month by month cash flow forecast for the next six months including load factors and average ticket prices by month. This information we will obviously keep confidential but we expect a monthly update of the cash flow forecast including comparisons of forecast vs actuals on the 5th Business Day of each month.

All the Licensor's rights are expressly reserved.

Yours faithfully

Sir Stelios Haji-Ioannou
Chairman
For easyGroup Holdings Limited."

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