Jambojet posts another loss

Geza Ulole

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[HASHTAG]#Jambojet[/HASHTAG] posts another loss
Aviation, Travel and Conservation News - DAILY from Eastern Africa and the Indian Ocean islandsJuly 2, 2018Uncategorized
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101 MILLION KENYA SHILLINGS LOSS AS JAMBOJET FALLS IN LINE WITH KENYA AIRWAYS’ NEW FINANCIAL YEAR

(Posted 02nd July 2018)



After also changing the financial year to fall in line with parent corporation Kenya Airways did Jambojet, effective 31st of December 2017, report a loss of 101 million Kenya Shillings. This compares to just 25 million Kenya Shillings loss for the entire 12 months of the previous FY – the new accounting period only lasting from 01st of April 2017 to 31st of December 2017.In the 2016 financial year did the airline, unlike the parent company, in fact make a profit of about 126 million Kenya Shillings.
While the airline did not give reasons for the continued loss are aviation pundits and observers in agreement that a series of operational mishaps and challenges last year and a major fleet overhaul caused extra expenditure, for the latter thought to be a one off.
The airline, earlier this year, expanded beyond Kenya’s borders for the first time with flights to Entebbe, though the code shared operation with parent Kenya Airways on this route is clearly flawed, as a recent experience amply demonstrated.

[HASHTAG]#KenyaAirways[/HASHTAG] and [HASHTAG]#Jambojet[/HASHTAG] codeshare – a partnership NOT made in heaven for sure

It is understood, that once additional aircraft of the Bombardier Q400 type are delivered, that Jambojet plans to add further regional routes, subject to regulatory approvals and landing rights in the new destinations.

[HASHTAG]#Jambojet[/HASHTAG] posts another loss
 
Geza Ulole said:
wanasemaga wao ni aggressive!
Click to expand...

Na ile Fastjet ya South Africa si walisema wanafunga all operations juu ya hasara tupu Tanzania.
Your LDC purchasing power is not sufficient to run an airline. Ata hio Air Tanzania itaishi tu bailout za serikali ili ikae afloat.
 
This is low self esteem at its lowest. Pass the mantle Geza, you are growing old!
 
kennedy0000 said:
Na ile Fastjet ya South Africa si walisema wanafunga all operations juu ya hasara tupu Tanzania.
Your LDC purchasing power is not sufficient to run an airline. Ata hio Air Tanzania itaishi tu bailout za serikali ili ikae afloat.
Click to expand...
Ethiopia ni LDC lakini shirika lao ni fire, siku nyingine ficha ujinga wako
 
Jambojet inanunua ndege na kulipia new ruotes na hela zake... ATCL inanunua ndege mpya kutoka kwa hela za serekali....
Yani watz kuingilia jambojet ni kama vile katoto kadogo kanamwambia nduguye kwanini hana kipato cha juu wakati kenyewe bado kanategemea pocket money ya wazazi.
we can have this conversation when you grow up
 
Jambojet imekopa fedha Afrieximbank na pia ime-lease aircraft.

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Jambojet set to receive two Sh6.6b planes by Christmas
FRIDAY, NOVEMBER 17, 2017 9:25
BY MUGAMBI MUTEGI

Travellers disembark from a Jambojet plane. FILE PHOTO | NMG









Jambojet is set to receive two new aircraft worth Sh6.6 billion before Christmas in anticipation of the high-season passenger demand and as the low-cost carrier prepares to start international flights.

The airline, a subsidiary of national carrier Kenya Airways , is set to receive the first of two Bombardier Q400 on December 11. The second one is expected to touch down in Nairobi six days later.

Jambojet was in May granted regulatory approval to fly to 16 routes including Entebbe, Addis Ababa, Dar es Salaam, Zanzibar, Kilimanjaro, Mwanza, Kigali, Juba, Bujumbura, Hargeisa, Mogadishu, Goma, Kisangani and Moroni.

“We are confident that the Q400 aircraft will allow us to implement our growth strategy as we strive to launch new routes and to respond to the anticipated increase in demand,” Willem Hondius, Jambojet’s chief executive, said in a statement.

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The budget carrier will lease the aircraft from Danish firm Nordic Aviation Capital which in turn signed a purchase order for the planes with Montreal-based Bombardier on Wednesday.

Jambojet, which has been operational since April 2014, currently operates four aircraft — two Q400 planes (which were also acquired this year) and two Boeing 737s leased from its parent firm.

The airline plies six routes in Kenya; between Nairobi and Mombasa, Eldoret, Kisumu, Malindi and Ukunda (Diani). “We are looking at retiring our narrow body fleet (Boeing 737s) and transitioning to an all-Q400 fleet by end of this year,” said Mr Hondius.

The carrier has already returned one of the Boeings to KQ with the national carrier now expected to put it up for sale.

Thousands of Jambojet passengers travelling to the Coast over Christmas were hit by flight delays and cancellations.

The airline said the delays resulted from technical problems on one Bombardier, which was compounded by the delayed arrival of the aircraft to handle higher passenger numbers during the holiday season.

Jambojet, which issued an apology for these delays, has since then set out to increase its fleet to avoid a repeat of this incident even as looks to expand regionally.

Jambojet set to receive two Sh6.6b planes by Christmas
 
bado haujaonyesha Afrieximbank ikikopesha jambojet, taarifa inaongelea jambojet kupokea ndege mbili worth $60m.... leasing inamaanisha unatumia ndege lakini ikiharibika au ikihitaji marekebisho au hata kulipiwa insurance inagaramiwa na mtu mwengine...biashara ikishika, wanairegesha hio Q400 na kuchukua bigger aircraft bila loss... which is good strategy for a budding airline that only started only 4 years ago and already operated six aircraft out of its own financial book... hata kama wana loan...watailipa wenyewe na wala si serekali (unlike ATCL where the govt is buying using taxpayers money) thats howyou create somethin from nothing! an ill advised move is when Tz restarts an airline by pooring straight cash to buy several new aircrafts without even testing the waters to see how deep it is... this comes even after low cost fastjet operating from the same area virtually with no local competition still is making looses. .. what strategy will ATCL employ that fastjet didnt areleady try and failed? for a while fastjet was your defacto national carrier even enjoying govt protection.... Do you how much money it takes to maintain+insurance an aircraft or a yatch that you own??? ask any serious millionaire why they never outright buy a private jet or a yatch...and prefere to lease or rent instead...you will spend your first 10 years pouring all your revenues towards expensive maintenance cost ... infact, dont be suprised when the maintenance cost for that period supurses the intial cost of the planes.
 
Jambojet saved from filing bankrupcy yesterday. .. ATCL mnangojewa...
I am amazed at how shareholders for the 5th time have injected more cash to keep them afloat... maybe they are just waiting for the oppotune time to pull out with some profit.... hiibiashara ya ndege haitaki wapiga vifua..



MONDAY, JULY 2, 2018 21:05
BY PAUL REDFERN
Troubled African budget airline Fastjet has been saved from imminent collapse with a Sh1 billion ($10 million) cash injection on Friday from its shareholders.
However the airline, which already halted operations in Kenya, said the cash injection will only give it enough funds to keep going for the rest of this year.
Half the funds will be used to support Zimbabwe and Mozambique operations and to repay some loans while the rest will go to trading in Tanzania.
Fastjet admitted that it was on the brink of collapse on Wednesday and acknowledged it would go bust unless it secured a rescue deal.
The airline has endured several years of difficult trading, with investors being asked for a cash injection four times to keep it flying since 2016.
READ: Fastjet faces going out of business today on cash crisis
The company also released its 2017 results on Friday in which it said that revenue for 2017 fell to US $ 46.2 million from US $ 68.5 million the previous year, while pretax losses fell to US $24.5 million from US $ 67.7 million in 2016.
The company says the reduced loss was due to a significant drop in administrative costs. However airline expert AJ Bell said the emergency cash injection “should not obscure the fact that this is a business in serious trouble
 
Una-compare airline operating in 4 countries to Jambojet?

Fastjet secures $10mn in funding; moves to acquire FedAir
Illustration of Fastjet Embraer 190-100© Fastjet
02JUL2018
Fastjet Group has set its sights on entering the South African market in 2019 after having secured approximately USD10 million dollars worth of fresh capital.

Following a warning to shareholders last week that it was facing a catastrophic funding crisis, the African low-fare carrier group said on Friday, June 29, that it had now successfully placed 66,495,310 new ordinary shares, priced at GBP0.08 (USD0.11) per share, to raise GBP5.3 million pounds (USD7 million). It also reached a deal with its largest singular shareholder, Solenta Aviation Group, wherein the South African ACMI/charter specialist subscribed to 28,924,538 new ordinary shares raising gross proceeds of GBP2.3 million (USD3 million).

With Solenta Aviation Group's increase in shareholding, the CEO ofSolenta Aviation, Mark Hurst, will join Fastjet's board as a Non-Executive Director where he will be working closely with CEO, Nico Bezuidenhout, on an ongoing basis. A Zimbabwean, Hurst will also be responsible for the country management of Fastjet's Zimbabwe and Mozambique operations.

The two transactions combined, Fastjet says it raised gross proceeds of GBP7.6 million (USD10 million). As of June 18, Fastjet's cash balance stood at just USD3.3 million.

In its recently published FY2017 results, Fastjet issued a further update on its stabilization plan given what it said was the "challenging" current economic and trading outlook for its Tanzania, Zimbabwe, and Mozambique (through Fastjet Mozambique) operations.

In the short-term, the Group has deferred the induction of its three ATR72-600s until September of this year. The Avions de Transport Régional turboprops will likely be deployed into service with Fastjet (FN,Dar-es-Salaam) to cater to the Tanzanian market as well as with Fastjet Zimbabwe (FN, Harare Int'l) where the carrier has now been granted rights to the Harare Int'l-Bulawayo route, previously the sole preserve ofAir Zimbabwe (UM, Harare Int'l).

In light of the difficult outlook for operations north of the Limpopo River, the Group has now turned its attention to the South African market where, earlier this year, it commenced the process of exercising its option to acquire local carrier and brand licensee, Federal Air (7V,Durban Virginia).

"The intention, beyond this current financing, is for the Company to explore financing and/or joint venture options in South Africa to support full-scale entry into that market," it said. "As the largest aviation market in Africa, the Board believes that South Africa, particularly routes to and from Cape Town, is[sic] strategically important to Fastjet, which can utilise the current FedAir platform as well as fastjet management's relations and track record in the country."

The FedAir acquisition is dependent on all relevant South African regulatory requirements being met and completed. The Group expects to commence Fastjet South Africa-branded services in South Africa no later than early 2019, subject to obtaining the suitable additional aircraft for its fleet and the associated financing.

Fastjet secures $10mn in funding; moves to acquire FedAir
 
ATCL set to take East Africa skies by storm
By STANDARD REPORTER 11 hours ago






East Africa’s skies is set for an intense competition as Air Tanzania Company Limited takes delivery of its new Boeing 787 Dreamliner this month to be deployed on long-haul flights currently dominated by regional airlines.

The arrival of the new aircraft, christened Kilimanjaro - Hapa Kazi Tu, marks a significant milestone in efforts to revive the state-owned airline and set in motion the drive to claim a share in the lucrative regional aviation market currently dominated by Ethiopian Airlines, Kenya Airways and Rwanda Air.

To begin with, the new Dreamliner, expected to be the new flagship aircraft of the national carrier, will be flying to Mumbai, India as early as September, according to ATCL Commercial and Business Development Director, Mr Patrick Ndekana.

He told the `Daily News’ that they envisaged to start flying to Mumbai in September if everything goes as planned after a market evaluation showed it would benefit from a booming medical tourism in India and trade connections with the Asian economic power house.

The planned Mumbai route will also boost tourism in Tanzania from potential lucrative India’s market in a revised marketing strategy which focuses on Southeast Asia, the Pacific Rim and South America.

ATCL plans also to take on other rival airlines in the moneymaking regional routes by deploying two Bombardier CS 300 jetliners which are expected to be delivered later this year. Initially, ATCL will fly three times a week to Bujumbura, Burundi through Kigoma and four times a week via Kilimanjaro to Entebbe, Uganda to fill a critical void in the regional transport market and enhance regional economic integration.

Outlining CS300 and B787- 8 deployment plans to African Aerospace in November last year, the ATCL Chief Executive Officer (CEO), Ladislaus Matindi said the CS300s would be used to open up five or six regional routes in Southern and West Africa including Johannesburg, South Africa, Zambia, and Zimbabwe, as well as Ghana, Nigeria, and Senegal, and one or two destinations in the Middle East.

ATCL revival is one of government flagship infrastructure development projects in a bid to transform the country into a regional transportation hub.

The state-owned airline currently flies to destinations such as Arusha, Dar es Salaam, Kigoma, Mbeya, Mtwara, Mwanza, Tabora and Moroni in Comoro increasing its market share from single to double digits in less than two years despite flying a few seats compared to rival airlines.

According to Mr Ndekana the market share of the national carrier increased from merely 2.5 per cent in 2016 to 42.6 per cent at the end of last year with only two aircraft in operation.

ATCL set to take East Africa skies by storm
 
^^ According to Mr Ndekana the market share of the national carrier increased from merely 2.5 per cent in 2016 to 42.6 per cent at the end of last year with only two aircraft in operation.
========

an airline adds two narrow bodied planes to the market and it gains to 42% marketshare in the local industry! hehe no wonder fastjet are yet to make any profits .. Tanzania has no aviation market
 
Air Tanzania has 4 aircraft right now each with over 70 PAX n compete with fastjet n Precisionair. We once talked of number of PAX per year ur other airports transport aside JKIA n MOI! It was a shame it turns out even at JKIA is a deliberate move by KAA to force international airlines to land there just to make the 4 mln PAX. Let them go direct to Mombasa n see through numbers at JKIA like what JNIA does by allowing international flights to KIA n AAKIA n soon to Mwanza, Mbeya n Dodoma.
 
RUKUKU BOY said:
Ethiopia ni LDC lakini shirika lao ni fire, siku nyingine ficha ujinga wako
Click to expand...

Kwa hivyo when it suits you, Ethiopia sio the largest GDP in East Africa tena.
And in any case, Ethiopia na North Korea wako kimoja. You never know what is happening in their country.
It is very likely that serikali yao hubail out their airline every year.
 

Correction: JKIA is approaching 8 million passengers.
Hio 4 million passengers ata airport zote zenu za Tanzania hazijakaribia kwa pamoja.
And no one has forced international airlines to land in Nairobi instead of other airports. In fact, KAA actively encourages new airlines to start other routes, not to mention modernizing all these airports.

Lakini, in a capitalist world, airlines go where there is demand.
It's the same way mtajenga materminal mpya huko Nyerere lakini since Tanzania is still and LDC, demand will continue to be low.
 
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