Twist in Sh660m Fastjet-Fly540 wrangle as licence is withdrawn

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OgwaluMapesa

JF-Expert Member
May 24, 2008
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The debt-ownership row between FastJet and Fly540 Kenya has taken a new turn after the latter withdrew its licence that allowed the London-based budget carrier to carry out business in Africa.

In a statement on Wednesday, Five Forty Aviation, which owns the Fly540 brand, said that FastJet subsidiaries across the region must repaint their aircraft and remove branded merchandise from sales offices after failing to comply with conditions stipulated in the licence agreement.

Five Forty Aviation had January 24 written to FastJet subsidiaries in Angola, Ghana and Tanzania giving them a seven day notice comply with the licence agreement, part of which include the payment of Sh669.9 million in licensing fees.

The subsidiaries allegedly failed to meet the Tuesday deadline following which Five Forty Aviation withdrew its license.

"We had no choice but to take this action... we have not received safety reports for the past three months from FastJet's Africa Operation," said Fly540 Kenya chief executive Don Smith.

In a rejoinder, FastJet issued a statement declaring that neither Mr Smith nor Five Forty Aviation has the power to withdraw the licences.

"Five Forty Aviation is powerless to terminate purported brand licence agreements for any Fly540 operations... with regard to operations, it will have no impact on operations," Fastjet chairman David Lenigas said.

FastJet was set up last year after Lonrho Aviation transferred 49 per cent of its ownership in Fly540 to London-listed firm Rubicon.

The company's plan is to leverage on the Fly540 brand and market position in Kenya, Tanzania, Angola and Ghana to launch a budget carrier in Africa.

However, over the past few weeks, Fly540 Kenya has disputed the validity of the transaction, saying that Lonrho owed the company Sh591 million ($6.8 million).

The ownership dispute has stalled FastJet's plans to enter the Kenyan market and revamp the Kenyan unit of Fly540.

Last week, the company signed a deal with Fly540 rival, Jetlink, that could give it an alternative route into the local market.

"We feel that Jetlink, which already has IOSA (an international safety standard) accreditation, is a far better Kenyan partner for Fastjet, given our standards of safety, security and reliability," said FastJet yesterday.

The company has also stated that it will move against Fly540 Kenya chief executive Don Smith, to recover "previously undisclosed historic debts" that "have come to light post acquisition."

The latest move by Mr Smith to go after FastJet's business outside Kenya could further throw a wrench in the company's long-term plans.

Source: The Nation
 
Nakumbuka sana 'Community Airlline' walianza kwa makeke sana kama walivyo hawa fast jet
 
FastJet wamekanusha hii habari kupitia tovuti yao na kupitia ukurasa wao wa Facebook. Je tumwamini nani??
 
Inasemekana kwa Tanzania precision imeshindwa kucompete na fastjet kwa iyo kuna lobbying imefanyika kutoka kwa makubaliano ya serikali kuwa 540,watapata punguze na exclusion ya taxes flani ili fastjet wakimbie,kwa mujibu wa inteligensia fastjet watafukuzwa soon!!!
 
Based on my little understanding, this information implies FAST JET planes are supposed to be grounded. What is the fate of my fellow travellers who have bought the CHEAP tickets to fly to their respective destinations in March, 2013 and following months???

Guys be careful; history in Tanzania shows an ugly treatment to clients when service providers closes their shops.....Refunding is usually a nightmare........TAFAKARI KABLA HUJAKATA TIKETI hadi ukweli wa suala hili ujulikane
 
Habari hizo ni uzushi, na wao FASTJET wameshakanusha kwenye website yao. Ni njama za mashirika haya ya nchini yasiyoweza ku compete, wamezoea super profit sasa FASTJET wamewakalia kooni kwelikweli.
 
7th Feb '13by fastjet Tanzania

Important Update

Despite today's Media coverage it is business as usual at fastjet. Allegations about the license withdrawal are completely untrue. We continue to operate our flights from Tanzania and we are still launching new routes as planned. This is purely a personal vendetta against fastjet in a clearly orchestrated attempt to undermine the credibility of the fastjet brand and reputation.

Our offices and call centres are still open for new bookings and no refunds are available.

A formal response will be made available in the next few hours.
www.fastjet.com

For further information regarding these reports please read below:
7th February 2013
fastjet plc
("fastjet" or the "Company")
Brand Licence
In response to recent misleading press reports, David Lenigas, Chairman of fastjet plc and Chairman of Five Forty Aviation Limited (Kenya) ("Fly540 Kenya"), confirms that there is no valid Brand Licence Agreements, Franchise Agreements or Management Agreements between Fly540 Kenya and Fastjet or any other Fly540 associated Companies in Africa.
Statements made by Don Smith from Kenya, a director of Fly540 Kenya, suggesting he has the right to withdraw the Brand are absolutely wrong and without foundation. The Board of Directors of Fly540 Kenya has never met to even consider this issue.
fastjet wishes to advise the media and our passengers who fly with us throughout Africa in either a fastjet plane, Fly540 plane or Fly540 Africa plane, that we are looking forward to expanding our Low Cost Airline throughout the African Continent.
 
Time wil tell. In busuness there is no fair play. God be on FastJet side.
 
Duuh kazi ipo,nishakata Return Ticket ya trh 20 feb.
 
[h=2]Tanzania Daily News (Dar es Salaam)[/h]
[h=1]7 FEBRUARY 2013[/h]
IN yet another twist of events, Five Forty Aviation Limited has announced that it has withdrawn the licences it had granted to Lonrho Aviation (FastJet Africa Operations) in Tanzania, Angola and Ghana.


The withdrawal means that Lonrho Aviation has to stop using the Fly540 brand immediately due to its alleged failure to comply with respective agreements reached with Five Forty Aviation.

Interestingly, the Tanzania Civil Aviation Authority (TCCA) said yesterday that it had not received any official communication from Five Forty Aviation regarding the withdrawal.

"Fly540 was first licensed in Tanzania in 2008 and its licence was renewed in October last year. My office has not been informed of the said withdrawal," TCCA's Director General, Mr Fadhili Manongi, told 'Daily News' in a telephone interview.

In June last year, London Stock Exchange's listed FastJet, which was formerly known as Rubicon Diversified Investments Plc, acquired Lonrho Aviation and thus gaining control of assets and liabilities of the company in Tanzania, Angola, Kenya and Ghana.

The new company re-branded in Tanzania from Fly540 to FastJet Tanzania in November, last year, but it continued using Fly540 brand in Angola and Ghana. However, available information indicates that lawyers representing Five Forty Aviation wrote to the three African operations on January 24, this year, informing them on the intention to withdraw their licence to use the Fly540 brand if they did not comply with terms and conditions of the licence agreement within seven days.

Five Forty mentioned the conditions that had not been adhered to as payment of outstanding and other fees totalling US 6.9 million dollars in Tanzania as well as US 500,000 dollars and US 300,000 dollars in Angola and Ghana respectively. It also stated that contrary to licence agreement and despite several reminders, FastJet had not provided information to Five Forty's Head of Safety to demonstrate compliance with Fly540's accepted safety systems.

"As FastJet has failed to respond notice has been given to Fly540 Angola and Fly540 Ghana to re-paint their aircrafts. Also, as per licence agreement, Five Forty has written to civil aviation authorities in the three countries informing them of the withdrawal of the licence," the CEO of Five Forty, Don Smith, was quoted as saying.

In another development, it has also come to light that Canadian company Avmax Aircraft Leasing has written to FastJet saying it was removing the registration of three planes leased by its operations. The three aircrafts have allegedly run up unpaid leasing and maintenance bills of almost two million US dollars (approximately 3.2bn/-).

On its part, FastJet denied it owed the Canadian company anything, stating that there has never been a contractual arrangement between Avmax and FastJet. It maintained further that it is Don Smith through Fly540 in East Africa who entered into contractual relationship with Avmax and these commercial arrangements owes money to the Canadian company for unpaid aircraft lease rentals and maintenance.


 
Hakuna KIZURI kwa WANANCHi wa TANGANYIKA kitakacho LAST for LONG TIME... Some FUNNY POLITIKING will follow it TILL IT DIEa cold Weather BITE....
 
Basi kumbe sijakosea kusoma hio title maana niliianza kuisoma hivi: Tanzia........... ndio nikashtuka nikaamua nisome content but in reality the title (Tanzia) resembles the Content. Gnt Tanzania
 
Abiria wanaotumia ndege za shirika la ndege maarufu kama Fast Jet zenye bei nafuu kuliko ndege zote nchini, huenda wakakosa huduma hiyo kutokana na shirika hilo kuwa hatarini kufungwa kutokana na kukiuka mkataba uliokuwepo kati yake na Fly540 Aviation Ltd. Sakata hilo limekuja baada ya kampuni ya Fly540 kutangaza kuondoa leseni yake iliyotoa kwa FastJet ili kuendesha shughuli za usafirishaji ktk anga la Tanzania, Angola, Kenya na Ghana.

Kuondolewa kwa leseni hiyo kunamaanisha kuwa FastJet sasa itapaswa kisheria kusimama kutumia alama au chapa zote za Fly540 Ltd, kampuni ambayo inasemekana iliuza hisa kwa mkataba ambao FastJet wameukiuka.

Mkurugenzi mkuu wa mamlaka ya usafiri wa anga, Fadhili Manonga, amethibitisha kupokea barua toka kwa makampuni yote mawili yaliyowekeana pingamizi za kisheria, huku Fly540 ikiitaka FastJet kuacha kutumia alama na chapa zake katika shughuli zake hapa nchini.

Source Tanzania Daima la Feb.08, 2013
 
Hiyo ilijulikana , tulichokuwa tunasubiri ni muda tu , Hatimaye Wanyonyaji wameshinda !
 
wenye mabasi ya luxury walikuwa wanailaani sana fast jet. wenyewe fast jet walikuwa wanajinadi kuwa hawashindani na atc au pw bali mabasi.

all in all tusubiri tuone hatma itakuwa ni nini.
 
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