Fastjet still to get lifeline beyond March 2020

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Low-cost airline, Fastjet says it is yet to get funding meant to keep it afloat beyond March this year.

In November 2019, Fastjet said it is looking to offload its Zimbabwe unit to a consortium led by its major shareholder, Solenta Aviation, for US$8m (about R118m at current exchange rates).

It said then that, if the restructuring plans do not pan out by the end of February, the Africa-focused company may not be able to continue trading as a going concern.

On Monday, in a trading update, the company said it was yet to finalise the disposal of Fastjet Zimbabwe.

To address its funding requirement the group said it "remains in active discussions with an investor consortium led and underwritten by Solenta Aviation Holdings and other local investors in Zimbabwe, in relation to the disposal of the group's holding in Fastjet Zimbabwe".  

"The investor consortium is finalising its due diligence on Fastjet Zimbabwe and securing the required regulatory approvals," the company said.

"The final negotiations with the investor consortium, including the final consideration payable, will be concluded once this exercise is completed."

It added that, whilst discussions with the investor consortium are ongoing, there can be no guarantee of a successful outcome.

"If the group is unable to carry out the restructuring proposal by the end of March 2020, it would be unable to continue trading as a going concern," it added.

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