Title: Africa’s Low Cost Airline Fly540 Exits Ghana And Angola Market
Africa’s low cost airline Fly540 has officially stopped its operation in Ghana and Angola in a continent wide restructuring program that will see it concentrate its efforts in its profitable markets in East and Southern Africa.
The budget airline, a subsidiary of FastJet, is said to be considering a $10 million offer from an interest buyer for its Ghanaian operation. I has already sent its employees in the west African country on an administrative leave and flown out its leased planes.
Fastjet interim chairman and Chief Executive Officer, Ed Winter, said in a press statement that the company is currently focused on expanding the low cost fastjet network in East and Southern Africa by establishing bases in Zambia, Kenya and South Africa and these plans are progressing well.
“Management has been carefully considering how best to restructure the Fly540 business which we inherited and this is a highly significant and very positive development in that process,’’ Winter said.
‘’fastjet has concluded that, although these countries present very significant long-term opportunities for the fastjet low cost model, in the short term fastjet intends to fully focus on the considerable potential of opportunities in East and Southern Africa.’
Ghana Web reported the as a key part of the restructuring, two group-owned ATR aircraft previously operating in Ghana and Angola have been taken out of service and are currently in the process of being sold.
According to a report in Air Transport World, Fastjet, Africa’s budget carrier with its operating hub in Dar es Salaam, Tanzania, said in a previous statement that the restructuring program is aimed at turning around its loss making Fly540 businesses in Angola and Ghana.
Currently, the Ghana and Angola businesses operate on a legacy airline model. Standard Digital reported that Fastjet believes that although both countries present significant long-term opportunities for its low-cost model, the optimum short-term potential is exploiting growth opportunities in East and Southern Africa.