According to Bizcommunity, low-cost airline fastjet has signed an agreement with South African investment company Blockbuster, which will allow fastjet to operate services in South Africa by the end of May. It is anticipated that the new entity will be 75% owned by Blockbuster, in compliance with South African law, and 25% owned by fastjet.
The airline’s chief executive Ed Winter said fastjet sees a strategic gap in the South African market for a pan-continental, low-cost airline operating the yield management model required to keep fares affordable for passengers in the long term. Winter added that they are firmly focused on getting up and running, in order to “create a fresh, unique and commercially sustainable offering which will stimulate the market.” Blockbuster has made a commercial arrangement with local operator Federal Airlines, which will allow fastjet to leverage Federal Airline’s existing licensing infrastructure and deliver its low-cost airline model to the South African public.
In recent months, fastjet has been in discussions with a number of South Africa-based entities to support its market entry strategy, including negotiations regarding a potential purchase of liquidated airline 1time. David Lenigas, fastjet’s chairman, said they are not seeking to be a hostile competitor, but rather provide extra seat capacity to South Africans, so that they can travel when and where they want at better prices. Tickets are expected to go on sale in a few weeks, and fastjet is targeting the 31st of May as the launch date for the initial Johannesburg to Cape Town route.
For more information visit: fastjet.com