fastjet making progress with 1time deal
2012-12-20 08:57
African low-cost airline fastjet has entered into an option agreement to buy the entire issued share capital of 1time Airline from its parent company, 1time Holdings, for ZAR1.
The news follows a recent announcement fastjet was in talks to buy 1time, which went into liquidation last month, Breaking Travel News reports
The agreement is subject to a number of conditions, including 1time Airline reaching a settlement with its creditors via a court sanctioned scheme of arrangement, any necessary approval by fastjet's largest shareholder Lonrho, the approval of the 1time Holdings shareholders as well as UK and South African Regulatory approval.
fastjet, by acquiring the shares, would gain the right to operate domestic and regional air services in South Africa and will be taking over up to three of the twelve aircraft that were in 1time's fleet when the business went into provisional liquidation. The aircraft will all be on new operating lease agreements.
The initial routes are all domestic routes serving the cities of Johannesburg, Cape Town, Durban, Port Elizabeth and East London.
Ed Winter, chief executive of fastjet, said: "I am pleased we have managed to reach a provisional agreement with all parties to buy 1time.
"Due to protracted negotiations we will not have 1time flying before the Christmas but very much hope that 1time will be flying again early in the New Year."
He confirmed that flights will initially be operated by a number of aircraft in the 1time fleet, but that they plan to re-fleet with modern Airbus A319 in due course. Winter also added that 1time will be rebranded as fastjet.
"The acquisition of 1time supports fastjet's growth into a pan African low cost carrier and the synergies with fastjet' s existing operations will potentially increase the number of available route networks from South Africa into the rest of Africa," he said.
