Low-cost carrier fastjet has announced that it has signed an agreement to dispose of its holding in Fly540 Kenya to Don Smith, a director of Fly540 Kenya. The agreement wholly removes Fly540 Kenya from the fastjet group.
All legal and financial ties between the two companies have been dissolved and each group has indemnified one another against any and all liabilities relating to the segregation of the businesses.
Ed Winter, Interim Chairman and Chief Executive of fastjet, said: “Following a period of complex negotiations, we are delighted to have achieved a successful outcome for all parties. After a thorough and lengthy evaluation of Fly540 Kenya, we concluded that converting the business into the fastjet low-cost model would not be economically viable.”
“Disposing of our investment in Fly540 Kenya allows us to pursue our priority objective of creating fastjet Kenya as a new entity, which will operate on the same low-cost model as fastjet Tanzania and use the same commercial strategy and distribution platforms.”