Founder of easyJet starts FastJet

[Boeing767copilot]

Sir Stelios Haji-Ioannou, the founder of easyJet, has announced he will launch a rival airline called Fastjet.
EasyJet said it will take action to protect its rights.
"easyJet plc announces that it has received notice from Sir Stelios Haji-Ioannou that he intends to set up an airline branded Fastjet and that a website has already been established," it said in a statement.

http://news.sky.com/home/business/article/16077489

[airazurxtror]

There is already a "Fast Jet" :

http://www.fastjet.it/it/noleggio_jet_privato/

Anyway, it'll be interesting to see what Stelios has in mind : routes, bases, aircraft; will it be an LCC ?
EasyJet has now drifted rather far away from the easyJet that was launched by Stelios some 15 years ago ...
Some kind of "retour aux sources" ?

[sn26567]

Sir Stelios is still by far the largest shareholder of easyJet. Is he really going to compete against himself?

Or will he open complementary routes with Boeing 737-800s (as he is opposed to the new Airbus purchases by easyJet)?

[RoMax]

Sir Stelios is still by far the largest shareholder of easyJet. Is he really going to compete against himself?

The British press made Fastjet "a competing airline". As far as I know, nobody ever said Fastjet will become a rival of easyJet. The press came up with that idea. EasyJet said in a statement that they are aware of Stelios plans and that Fastjet will not compete with them, if they will easyJet will take the "required steps".

Or will he open complementary routes with Boeing 737-800s (as he is opposed to the new Airbus purchases by easyJet)?

It is not that he doesn't like the A319. The dispute between Stelios and easyJet about the new A319/320 orders was that Stelios said easyJet shouldn't invest in expansion so much but rather pay their shareholders with a large part of easyJet's profit. But easyJet wanted to expand so the shareholders got nothing/almost nothing.

[sn26567]

According to The Telegraph, Fastjet will take on the long-haul market.

A good way not to compete with easyJet. But that will put him head-to-head against British Airways and Virgin Atlantic.

[airazurxtror]

According to
http://www.air-journal.fr/2011-12-06-le ... 40468.html
Fastjet would operate in an African country - when and where is not yet known, but it could be in Kenya (not in Congo, it seems).

[rwandan-flyer]

http://www.flightglobal.com/news/articl ... nd-373018/

FastJet, the pan-African low-cost carrier planned by EasyJet founder Stelios Haji-Ioannou, expects to launch operations in three to four months, chief executive-designate Ed Winter tells Flightglobal.

http://www.fastjet.com/articles/12-06-1 ... ssion.html

[Jetairfly]

If you have a closer look at the airplane on their website, it seems that the aircraft is registered in Ghana. Maybe the new airline has its base at Accra airport?

I wish them the best of luck !

[Passenger]

Some sources (aviation and others) have given some strange comments about this new low cost African airline. FastJet (if that will be the brand name) will be successfull because it combines a very solid financial structure with excellent aviation expertise: Stelios, easyGroup, Rubicon and Lonrho.

Press statement Lonrho - 13 June 2012

Lonrho Plc ("Lonrho" or "the Company") to list its aviation division on the London Stock Exchange (AIM) to create "FastJet", an African low cost airline, in conjunction with Sir Stelios Haji-Ioannou and easyGroup

Lonrho Plc is pleased to announce that it has agreed to dispose of its aviation business, Lonrho Aviation, to Rubicon Diversified Investments Plc, an AIM listed investment company ("Rubicon", LN: AIM : RUBI) (the "Transaction"). The total consideration for the Transaction payable to Lonrho is US$85.7m, consisting of 1,150,537,455 Rubicon ordinary shares calculated at a notional value of 4.8 pence per Rubicon ordinary share. Lonrho currently holds 9,500,000 ordinary shares in Rubicon and, as a result of the Transaction, the Company's enlarged shareholding in Rubicon on completion of the Transaction ("Completion") will be 1,160,037,455 ordinary shares, comprising 73.7% of Rubicon's enlarged issued share capital. The General Meeting of Rubicon's shareholders, for the purpose of approving the Transaction, has been convened for the 29th June 2012.

As part of the Transaction, Sir Stelios Haji-Ioannou's easyGroup Holdings Limited ("easyGroup") will own 5% of the ordinary share capital of Rubicon, as enlarged by the Transaction. Following Completion Rubicon will pursue a strategy of developing a low cost African airline utilising the Lonrho Aviation route network and existing platforms. Under a licensing agreement with easyGroup, the airline will be branded FastJet and will use modern jet aircraft and operate to European standards.

The background to the Transaction is the completion earlier this year of Lonrho's four year programme of developing operational hubs in East, West and South West Africa for Lonrho Aviation. Lonrho Aviation's strategic hubs operate in Kenya, Tanzania, Ghana and Angola, providing an unparalleled route network and operating platform to launch across Africa.

In addition to the partnership with easyGroup, a key benefit of the Transaction to Lonrho is the substantial cash resources held by Rubicon (£8.8m as at 31 December 2011) which will be available for continued investment in the airline business following Completion. Fastjet will focus on developing a true low cost airline for Africa based on the existing Lonrho Aviation platform which, in its existing operations as Fly540, had turnover of US$57 million and carried 525,375 passengers in the 15 months to 31st December 2011. Passenger loads continue to increase with Fly540 carrying 53,225 for the month of May 2012.

The population in Africa has now reached one billion people and the strengthening emerging economies across the Continent are building a significant demand for regional aviation services. Seven of the World's top ten fastest growing economies are now in Africa. GDP and consumer spending is rising and the rapidly increasing numbers of intercontinental flights that are flying into Africa create an increasing demand for regional African travel.

As part of the agreement between easyGroup and Rubicon, easyGroup will have the right to appoint two directors to the Rubicon Board. It is intended that one of the easyGroup appointments will be Mr Ed Winter who would become CEO following Completion. Ed Winter launched and was the CEO of the low cost carrier GO for British Airways and thereafter became the COO of easyJet. Sir Stelios Haji-Ioannou has the right to be personally appointed to the Rubicon Board as the other easyGroup board representative following Completion. David Lenigas and Geoffrey White will remain on the board of Rubicon.

As at 31 December 2011, Lonrho Aviation, operating as Fly540, had Total Assets of US$ 83.5 million and in the 15 months to December 2011 made a loss after tax of US$ 19.0 million. The majority of these losses were predominantly due to the start-up and establishment costs of opening the Angola and Ghana operational hubs.

The Rubicon shares received by Lonrho as consideration for the disposal will be subject to a 12 month lock in period, during which time Lonrho cannot sell or transfer such shares. Whilst Lonrho owns more than 50% of Rubicon's ordinary shares, both Rubicon and the aviation business will be consolidated in Lonrho's accounts.

The Takeover Panel has agreed, subject to the passing of the required resolutions at the Rubicon General Meeting on 29th June 2012, to waive the obligations on Lonrho and its concert party members, under Rule 9 of the Takeover Code, to make a general offer for the entire share capital of Rubicon.

David Lenigas, Executive Chairman of Lonrho commented:

"Lonrho has completed its investment programme into its aviation division and has successfully created a unique aviation network in Africa. The next step in the growth of the business requires a World class aviation team to develop the business to meet the growing demand for a scheduled regional airline in Africa. I am delighted that Sir Stelios Haji-Ioannou and easyGroup have studied this market and concluded that the Lonrho aviation division provides a unique entry platform for the development of a true low cost carrier for Africa, to be branded FastJet.

The combination of Lonrho's experience in Africa; the aviation experience of Sir Stelios Haji-Ioannou and easyGroup; the route network and operations already established by Lonrho Aviation across Africa and Rubicon's cash resources will enable Fastjet to quickly develop its low cost airline."

Source:
http://www.lonrho.com/News/RNS_Announce ... d=11231504

Annual report Lonrho 2011:
http://asp-gb.secure-zone.net/v2/indexP ... 918&lng=en

[sn26567]

The current name of the existing Lonrho airline is somehow mysterious: in "Fly540", what does the 540 refer to?

[RoMax]

The current name of the existing Lonrho airline is somehow mysterious: in "Fly540", what does the 540 refer to?

From wikipedia:

The airline started operations between Nairobi and Mombasa on November 24, 2006. The service initially operated twice daily using 48-seat ATR 42 aircraft.[4] The airline's name refers to its price of Sh5,540 per adult return fare between the above-mentioned cities.

[Passenger]

Lonrho Plc’s low-cost African airline, FastJet, will operate Airbus A319s, with the first flights scheduled for October. The company announced the sale of its aviation business to British investment firm, Rubicon last month. The sale enabled the group to create FastJet with easyJet founder, Stelios Haji-Ioannou's easyGroup. On June 29, Rubicon announced the successful completion of its deal with Lonrho Aviation and its airline Fly540, providing the merged group with existing aviation platforms in Ghana, Kenya, Tanzania and Angola. FastJet will operate under a brand licence agreement with EasyGroup Holdings and Sir Stelios Haji-Ioannou, founder of leading low-cost airline easyJet.

The Airbus A319 has proved an ideal aircraft for the low-cost airline model in other parts of the world. The 156-seat aircraft was chosen after an extensive evaluation of a wide range of options and is ideally suited to the company's expansion plans. "The decision to launch FastJet with the Airbus A319 enables us to expand rapidly, with each aircraft potentially carrying around 250,000 passengers a year. Rubicon expects passenger numbers to double from current levels within six months of the introduction of the A319 fleet,” said Rubicon Chief Executive, Ed Winter. "We plan to add at least five leased A319s to the fleet within six months of launch and up to 15 within a year," continued Winter. “FastJet will open up low-cost travel to the African market, and the Airbus A319 will bring new levels of comfort to air passengers across Africa. It is a great combination,” said John Leahy, Airbus Chief Commercial Officer Customers.

David Lenigas, Executive Chairman of Rubicon and Lonrho Plc, said FastJet had already stated its intent to raise the bar on air safety in Africa by operating its aircraft under the same strict rules that applied to European carriers. “To this end, we expect to sign an agreement with a major European MRO (Maintenance, Repair and Overhaul) company for the maintenance of its new A319 fleet in the coming months. Our management team has also been actively engaged in detailed discussions with a number of governments to lobby for incentives and reduced passenger taxes, factors that will affect our final decision on where to deploy the first A319s," said Lenigas.

Source:
http://www.tourismupdate.co.za/NewsDeta ... wsId=64382

[Passenger]

Press release 17th September 2012:

http://www.fastjet.com/financial-news/242-tanzania

[sn26567]

A preview of the livery, with original and unusual colours:

[flightlover]

Nice livery, with a hint of easy orange. Must be his favorite color.

[KriVa]

Very tongue in cheek, I love it! Not sure about the logo on the tail though...

[sn26567]

Africa's first low-cost airline, Fastjet, will start selling tickets next week as it prepares for its inaugural flight in December.

The carrier also unveiled its brand logo of an African grey parrot. Ed Winter, Fastjet CEO, said: "The African Grey is renowned for its intelligence and is therefore a perfect personification of Fastjet's motto; smart travel." The airline's three A319s are currently being painted in a livery featuring its new logo.

[sn26567]

After its domestic launch in late November 2012 (linking Dar es Salaam to Kilimanjaro and Mwanza), FastJet plans links to Nairobi, Entebbe, Juba and ...Kigali.

[airazurxtror]

http://www.independent.ie/travel/travel ... 03463.html

Very rarely is there a road between big cities, and virtually never a railway, so aviation has to be the way they move around,” says Ed Winter, chief executive of Fastjet. This new budget airline, backed by easyJet’s founder, Stelios Haji-Ioannou, is due to take off on Tuesday. Its first base is Julius Nyerere airport outside Tanzania’s biggest city, Dar-es-Salaam. Fastjet plans a modest start. The first flight, at 6am to the Tanzanian city of Mwanza, is still available at the equivalent of £17. Another domestic link, to Kilimanjaro, begins the same day.

In Africa, they do things differently. Sir Richard Branson’s brave attempt to bring reliable, good-value air transport to Africa’s most-populous nation in the shape of Virgin Nigeria was finally closed down in September after eight years of battling with institutionalised corruption. “We fought daily battles against government agents who wanted to make a fortune from us,” the Virgin boss is reported as saying.