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Fastjet announced Monday that it raised $ 10 million from investors, avoiding an imminent financial collapse after the airline warned last week that it might not survive without a fresh raise. of capital.
In case of failure, the company might not survive as a business in operation. At one point in June, liquidity reserves fell to $ 3.3 million, including $ 1.75 million in Zimbabwe
. However, on June 29, the LCC said it had placed more than 66 million new ordinary shares Solenta Aviation Holdings, the largest South African shareholder, had agreed to subscribe for an additional $ 3 million
Nick Hurst, CEO of Solenta Aviation, will join fastjet's board of directors and will work closely with CEO Nico Bezuidenhout. Hurst will also be responsible for fastjet operations in Mozambique and Zimbabwe
The funds raised should allow fastjet to have sufficient working capital for the rest of the year. year 2018. Half of the net proceeds will be used to support its operations in Mozambique and Zimbabwe, as well as repayment of loans, while the balance will be used to support operations in Tanzania and preparations for the launch of services in Africa. South.
Fastjet has a trademark license agreement with South Africa's Federal Airlines, which will give LCC access to a South African air operator certificate; services in the country are expected to begin in early 2019.
Fundraising success has allowed fastjet to publish annual financial figures, load factor has risen from 17% to 71%, while costs have been reduced by 48% to 70.7 million of do llars and revenue per head office increased by 30% to $ 60.9 million.
The company said that the year 2017 had been a year of stabilization, moving from its Airbus A319 to smaller planes – two Embraer E190s and three E145s. In addition, the company plans to introduce three ATR 72 turboprops in September 2018. It has streamlined its network by moving to the new fleet.
Fastjet also pointed to other positive factors such as its "strategic and operational partnership" with Solenta and the purchase of the UK-based easyGroup fastjet brand, whose founder , easyJet creator, Stelios Haji-Ioannou, was often struck by the former fastjet management team
Alan Dron [email protected]
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