Skift Take

It's been difficult for carriers to fully tap into Africa's low-cost potential, and Fastjet is no exception as it continues to face serious financial obstacles.

Troubled budget carrier FastJet Plc grounded its Tanzanian flights on Monday after the nation’s civil aviation agency issued a 28-day notice for the airline to streamline operations or have its license revoked.

“FastJet Tanzania would like to inform its customers who had booked a ticket to travel in December and January that it has temporarily halted its operations,” the airline said in a statement.

Passengers will start receiving refunds from Dec. 20, the airline with both domestic and regional flights said. “In addition, all companies and organizations that have been conducting business with FastJet are requested to get in touch with the airline.”

The Tanzania Civil Aviation Authority earlier Monday asked the Johannesburg-based airline to stop ticket sales and submit a turnaround proposal, Director General Hamza Johari said by phone from the commercial hub Dar es Salaam.

“If they don’t meet these conditions then we will revoke the license,” he said.

FastJet, founded six years ago with the ambition of becoming the first discount airline spanning sub-Saharan Africa, has struggled to make a profit. Chief Executive Nico Bezuidenhout warned it could close Tanzania’s operations unless shareholders pumped in more funds.

©2018 Bloomberg L.P.

This article was written by Ken Karuri from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected]

November 16, 2022
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Tags: fastjet, low-cost, tanzania

Photo credit: Fastjet grounded its Tanzanian flights on Monday. Fastjet