Fastjet ready to launch in SA

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Ockie

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Fastjet ready to launch in SA
Gia Nicolaides | Today, 06:50
JOHANNESBURG – United Kingdom (UK) based airline Fastjet said on Monday it was on track to start its domestic services in South Africa by the end of May.
The low-cost carrier abandoned plans to buy the bankrupt 1Time airline and signed a deal with investment company Blockbuster, which has ties to President Jacob Zuma's son, Edward.
Local operator federal airline's Brad Dickson said they expect to start selling tickets for the first flight in about a week’s time.
“We’re basically completing the process in terms of the regulatory requirements and driving the necessary bodies. We anticipate opening for bookings around 15 May and the first ride will be on 31 May.”
LIn December, the airline promised travellers very low fares.
Fastjet is a subsidiary of publically listed company, Lonrho.
The company said it had been considering investing in South Africa for some time.
(Edited by Tamsin Wort)
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http://ewn.co.za/2013/05/07/Fastjet-on-track-to-fly-in-SA
 
If they have the Zuma family involved in any way other than a fronting exercise, I give this company 12 months before they go bankrupt.
 
ToxicBunny said:
If they have the Zuma family involved in any way other than a fronting exercise, I give this company 12 months before they go bankrupt.
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It'll apply for a government bailout.

And who'll want to fly on a airline that'll land where ever it wants?
 
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Flip I want to go to CT for a holiday in Aug, wonder wether I should wait to see their pricing or go with Kulula
 
Skywalker786 said:
Flip I want to go to CT for a holiday in Aug, wonder wether I should wait to see their pricing or go with Kulula
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Well..they did mention the tickets will go on sale at about the 15th...so then you can see what their prices are like. I just really dont want to support a company that is so directly linked with a damn Zuma! :(
 
Ockie said:
Well..they did mention the tickets will go on sale at about the 15th...so then you can see what their prices are like. I just really dont want to support a company that is so directly linked with a damn Zuma! :(
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Thats my other issue...

I am very much against supporting enriching this family any further.
 
ToxicBunny said:
Thats my other issue...

I am very much against supporting enriching this family any further.
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Well...Skywise still needs to launch...so then instead of flying with Zuma backed Fastjet perhaps between Skywise and Kullula we could find good deals. Thing is Skywise still trying to get hold of its license.
 
Ockie said:
Well...Skywise still needs to launch...so then instead of flying with Zuma backed Fastjet perhaps between Skywise and Kullula we could find good deals. Thing is Skywise still trying to get hold of its license.
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Zumatello planes don't need operator's licenses.
 
R13... said:
I'm sure "anywhere" covers the road behind my house. There's a nice stretch here that ought to accommodate any jet's wing span.
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Speaking of anywhere - I watched a 737 land on a levee (one of those big walls they use to contain rivers in the USA) . It had lost both engines and that was the nearest flat bit they could find. Next day they swopped out one engine and took off and flew it to an airport. First (and only?) time that a Boeing has been landed without power outside an airfield.

I think the only person 'injured' was a woman who was recovering from surgery and some stitches came undone.

The plane started sinking into the soil so I'd say that the take off was pretty spectatcular too. Okay, plane would be empty and only have just enough fuel, but still.
 
Is Fastjet's SA venture 'dodgy'?

Competitor launches scathing attack; questions remain on the Zuma connection.
Fastjet announced on Tuesday that it had taken the “next step” towards beginning operations in SA with the leasing of an aircraft from SA-based Starcargo Airlines, but questions still remain on the legality of the venture and the role that the Zuma-linked local owner will play.

Serious allegations are being made by Comair, which runs low-cost airline Kulula, relating to the ethics and legality of the deal that will see fastjet enter SA as a potential competitor in the low-cost airline market.
According to Comair CEO Erik Venter the deal struck between fastjet UK, the local majority shareholder Blockbuster (now fastjet Holdings), and the local operator Federal Air, is “is just way too complicated to make sense.”
Under the arrangement it would appear that fastjet UK will supply the funding for the venture in exchange for a 25% stake in the airline, while Federal Air will run the airline from an operational perspective.
This service will be provided in exchange for a fee according to Evan Bailey, Federal Air CEO, who previously spoke to Moneyweb.
However, it remains unclear what the little known fastjet Holdings will be contributing in exchange for its 75% stake.

This, as well as fastjet’s questionable African track record, has lead Venter to conclude that local consortium is little more than a “front” designed to give fastjet UK control of a local airline in contravention of the law.
Edward Zuma, the eldest son of the president, may then possibly have been brought on board to soften regulatory scrutiny according to Venter.
“I think if the Department of Transport puts the effort in to look at this it becomes apparent that it is a dodgy deal,” says Venter.
“Perhaps that is why they have brought in Zuma…. that is the only way that DoT would allow the deal to go ahead,” he said.
Venter’s views are partly supported by those of aviation analyst Joachim Vermooten as well as a separate Moneyweb investigation which has questioned the nature of the Blockbuster entity.
Fastjet’s Chief Operating Officer, Richard Bodin, has refused to discuss the dynamics of the arrangement but states that “the authorities appear to be entirely comfortable with our structure”.
“We won't comment on aspersions made by other airlines who are clearly fearful of competition,” he added.
Airbus spokesperson, Linden Burns, has warned that Comair has stood to gain from rising airfares following the demise of 1Time and that its criticism of the deal needs to be viewed from “where it comes”.
Fastjet poses a risk to the profitability of Comair, although its entry into the local market would benefit both the economy and flyers and should the airline meet regulatory requirements it should be welcomed.
An opaque structure

Much of the concern relating to the fastjet deal is bedded in a lack of clarity as to the roles the various entities will play in the venture.
It is a central requirement of local aviation law that locally registered airlines be both 75% owned and “actively and effectively” in control of the air service.
Federal Air have announced that it will be managing the day-to day operations of the airline and that fastjet Holdings will bring “additional management expertise” and key “financial and strategic investment” into the airline.
But “active and effective control does not relate simply to who is sitting in the cockpit of the aeroplane,” says Venter.
“You need to look at who is actually making strategic decisions and running the business.”
“Federal Air is not taking the risk and reward and Federal Air is not making the strategy,” in order to comply with regulation, “that would all be coming from Blockbuster,” he says.
“But there is effectively nothing in Blockbuster.”
“Blockbuster is just a front for fastjet and this would mean that fastjet is actively and effectively really in control,” he says.
That Blockbuster lacks substance is a view supported by a Moneyweb investigation, which has found the entity to be without any traceable history in aviation history and to have been formed as early as 2011.
Venter’s views are supported by those of aviation analyst Dr Joachim Vermooten.
What we know

According to a statement dated 26 April “a commercial arrangement has been struck between fastjet Holdings and local operator Federal Air, which will allow fastjet to leverage Federal Air’s existing licensing infrastructure and deliver its proven low-cost airline model to the South African public.”
Says Vermooten “the essence of the commercial arrangement is therefore to allow fastjet UK to make use of Federal Airlines’ licences as part of its objective to establish a pan African low cost carrier.”
This view is further supported by the fact that the funding for the venture is being provided by fastjet UK and that on Tuesday fastjet announced that “it has led negotiation for its colleagues, Federal Air and fastjet Holdings, to lease a 737 aircraft from Starcargo Airlines on a full ACMI 'wet lease' service” by means of which Starcargo would provide the aircraft, crew, maintenance and insurance.
“In leading the negotiations, fastjet is demonstrating its active and effective control over the overall business of the air service,” says Vermooten.
“It should be noted that an air service is not only limited to the operation of an aircraft but to any service in relation thereto.
“This would certainly include the management of an airline, the person that carries the business risk and funding requirements and the person that benefits from the receipt of cash from forward sales of services to be rendered, all of which would have to be licensed to be in active and effective control of the air service.
“The simple question to ask is whether Federal Air will carry the commercial risk and reward of operating the airline.
“If fastjet does, then Federal Air’s licences cannot be used to enable fastjet to operate an air service.
“There is no doubt that it is the desire of fastjet UK to operate not only a domestic South African air transport service but an over-border (international) pan African air service out of South Africa.
“That would appear to be the true intention of the commercial arrangements.
“Fundamentally aviation rights are being sought for a UK company that cannot be attained by fastjet (UK) directly,” he says.
“Essentially, approval of this structure would afford South African national carrier status to foreign airlines.
“It would consequently also require South African aeronautical authorities to sponsor access for fastjet and other foreign airlines on African routes as South African national carriers.
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http://www.moneyweb.co.za/moneyweb-special-investigations/is-fastjets-sa-venture-dodgy
 
Fastjet set for take-off in July

Fulcrum29 said:
No bookings available yet?
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Fastjet set for take-off in July

Fastjet would start its first service in South Africa between Johannesburg and Cape Town on July 4, the London-based low-cost airline announced yesterday. For the first six months the service will be run on its behalf by Federal Air, whose licence will be used under a commercial agreement until Fastjet Holdings, its holding company based in this country, can obtain a licence of its own. The flying will be done by airline leasing company Star Air Cargo, based in Johannesburg, which is providing a 144-seat Boeing 737-300 with crew and insurance. Brad Dickson, the commercial manager of Federal Air, said yesterday that the airline’s website was due to open in mid-June “and we anticipate a lot of interest. Our ticket prices will be very competitive. We are very keen to offer value for money.” – Audrey D’Angelo
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Seems it has been pushed back slightly.
 
I must sat prices these days seem to have gone up by about 150-200 on avg i've noticed. Also i see kulula has made it such that u pay to pre-book your seat ahead of the pre-24hr checkin. <<--- i really don't see why this even exists in the 1st place, it's like cinema/theatre tickets, why can't you book a seat by default? :?
 
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