In an attempt to speed up its entrance into the South African domestic market, pan-African low cost carrier, fastjet has ditched its original strategy and has opted to team up with a local company in the acquisition of 1time.
1time’s provisional liquidator, Aviwe Ndyamara of Tshwane Trust, told TNW that the fastjet executive team had confirmed it had reached an agreement with a credible South African partner to facilitate the financial transaction, resulting in the application to the Department of Transport for an exemption being withdrawn.
Fastjet’s hope to bail out 1time were delayed by the South African Air Services Licensing Act, which states that foreign ownership of a local airline is capped at 25%. Fastjet applied for an exemption from the Minister of Transport, Ben Martins in December last year but has yet to receive a response.
As usual, fastjet remained tight-lipped about the deal, confirming only that it would own up to 25% of 1time should the deal go ahead. A spokesperson for the airline refused to confirm whether or not the South African company was already a player in the aviation industry. She said: “As we have said, we will provide an update on the status of our plans in South Africa as and when is appropriate.”
For more on this story refer to TNW March 27.
