Twist in Sh660m Fastjet-Fly540 wrangle as licence is withdrawn

Hivi ni kipi kigumu kwao kupata leseni yao wenyewe mpaka waingie mikataba na makampuni mengine?

Makampuni mengine bwana! Acha wawekewe mizengwe labda watatia akili!!

Shenzi type kabisa, kama hawakujiandaa walikuja kufanya nini? Nauli itarudi kule kuleeeeeeeeeee!!

Ngoja niwahi isije kula kwangu!!
 
Taarifa inajieleza kwamba kuna mkataba ambao waliwekeana ili kuuziana share. Mmojawapo wa parties ktk mkataba akikiuka au kwenda kinyume na contract basi upande wapili unaruhusiwa kisheria kusitisha/kuvunja huo mkataba. Atakeamua kwamba hakuna alieenda kinyume na contract ni mahakama, na sio boss wa FastJet.

Statement ya Fastjet, hapo chini. Tatizo huyo mwandishi wa habari ameandika habari nusu nusu. Angewahoji fastjet ili kupata the other side of the coin.
Brand Licence - Financial News - Investor News - Corporate - Fastjet

"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."
 
Dah kama ikiwa kwel bac ndoto zangu za kupanda ndege zmezma....much pains!
 
Nairobi, Kenya
February 7, 2013

Twist in Sh660m Fastjet-Fly540 wrangle as licence is withdrawn

In Summary

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

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: Twist in Sh660m Fastjet-Fly540 wrangle as licence is withdrawn - Business_News - nation.co.ke


Imekula kwao watani wetu Kenya, sisi tutaendelea kuruka na FastJet katika anga yetu ya Tanzania


READ BELOW TO UNDERSTAND THE SAGA BETWEEN FASTJET AND FLY540
Additional info by Kichwat of JamiiForums qouted from Telegraph newspaper
Canada-based Avmax Aircraft Leasing has written to FastJet saying it was removing the registration of three planes leased by its Tanzanian operation. The trio of aircraft, flying under the Fly540 brand, have allegedly run up unpaid leasing and maintenance bills of almost $2m (£1.3m).

The letter from Avmax vice-president Don Parkin, headed "Notice of De-Registration", notified "Fly540/Fastjet of its continuing default" under the lease terms.

It added: "As such, the lessor has elected to deregister the aircraft from the Tanzanian Civil Aviation Registry." The January letter said the deregistration would "be commenced immediately".

Mr Parkin's letter followed a warning in November that Fly540/FastJet was in default and continuing "to refuse and neglect your financial obligations". Avmax claimed the airline had undertaken to pay $150,000 per month for the rental and maintenance of the planes.

Last week's letter was sent to FastJet's chief financial officer Angus Saunders and Don Smith, the majority owner of Five Forty Aviation, which has a separate £4.4m legal dispute with the London-listed FastJet. Five Forty Aviation alleges FastJet has failed to honour a deal to repay debts that the company guaranteed with Chase Bank in Kenya – a claim FastJet refutes.
source: Fastjet faces having planes repossessed - Telegraph
Last edited by bagamoyo; 7th February 2013 at 05:39.

Hapa ni wivu, choyo, majungu na tamaa za Kenya ionekane kama ndo 'hub' ya shughuli zote za ndege maana FastJet inaoonesha kukubali kuifanya Tanzania ndiyo 'base' yake kubwa na makao yake Afrika mashariki kitu ambacho Kenya siku zote wanapiga vita Tanzania kufanikiwa katika kitu hii mpya ya kuwa makao makuu ya 'budget airline industry' katika ukanda huu wa Afrika Mashariki
 
fastjet2-500x333.jpg

Kama majibu kwa ripoti za kupotosha za hivi karibuni katika vyombo vya habari, David Lenigas, Mwenyekiti wa kampuni ya fastjet na Mwenyekiti wa Five Forty Aviation Limited tawi la Kenya ("Fly540 Kenya"), anathibitisha kuwa hakuna makubaliano yoyote halisi yanayohusu Leseni ya Nembo, Makubaliano ya kifursa au yale ya kimenejimenti kati ya Fly540 Kenya na Fastjet au kampuni yoyote inayohusiana na Fly540 Afrika.

Matamshi yaliyofanywa na Don Smith, Mkurugenzi wa Fly540 Kenya, kuashiria kuwa anayo haki ya kuondoa nembo na pia leseni ya uendeshaji hayafai na hayana msingi. Bodi ya wakurugenzi ya Fly 540 Kenya haijawahi kukutana kwa ajili hata ya kufikiria suala hili na hii imethibitishwa na wakurugenzi wengine. Imetambulika kwa mapana na umma wa Tanzania kuwa suala hili si kitu kingine bali jaribio la kuhujumu sifa na uaminikaji katika kibiashara.


Fastjet ingetaka kuvishauri vyombo vya habari na abiria ambao husafiri nasi katika Afrika nzima katika ndege za fastjet, ndege za Fly540 au ndege za Fly540 Afrika, kuwa, tunatazamia kupanua shirika letu lenye gharama za chini ili liwepo katika bara zima la Afrika.


Hadi sasa, tunakaribia idadi ya maombi ya kusafiria ya abiria 100,000, ambapo 30% wamelipia shilingi za kitanzania 32,000 tu kwa ajili ya tiketi zao. Vile vile, tunafanya kazi kwa kuzingatia muda na hatujakuwa na safari zilizofutwa au zilizobadilishwa huku ndege zetu nyingi zikiwasili ziendako kabla ya muda uliopangwa.
Source: H@ki Ngowi
 
Nairobi, Kenya
February 10, 2013

Fly540 was on the defensive Friday after Fastjet claimed sole ownership of the Fly540 brand.
By Mugambi Mutegi

Regional carrier Fly540 was on the defensive Friday after Fastjet claimed sole ownership of the Fly540 brand.


Fly540, days after it withdrew the brand licences from Fastjet, denied the ownership claim including that of Fly540 Kenya.

(Read: Fly540 withdraws brand licences it had given Fastjet)


The ownership row took a new turn last week after Fly540 withdrew the brand licences for Fastjet operations in Angola, Ghana and Tanzania. This move prompted Fastjet to claim ownership of the brand which was rejected.

“Fastjet cannot produce written proof that it has held the sole and exclusive rights to the Fly540 brand, and its claim to have held these rights “for a number of years” is a complete falsehood,” Fly540 said in a statement.


The spat has scuttled plans to establish the Fastjet brand in Kenya, which informed the sale of a 49 per cent stake of the airline to Rubicon in June by Lonrho Aviation.


The new owners offered to revamp Fly540 and remodel its business into a low-cost African airline.


Donald Smith, the CEO of the Kenyan wing of Fly540 said that the licenses were withdrawn as Fastjet owed $7.7 million (Sh669 million) in licensing fees and for its failure to demonstrate compliance with 540’s safety systems. Fastjet says it had paid all the sums due to Mr Smith.

Source: Fly540 denies Fastjet claim on brand ownership - Corporate News - businessdailyafrica.com


ADDITIONAL RELATED REPORT
JANUARY 30, 2013
Nairobi, Kenya

Donald Smith, the CEO of the Kenyan wing of Fly540,'' has refused to let go of the company until Sh593 million of debts he guaranteed are paid''.
The share swap was worth Sh7.2 billion and Rubicon had committed to acquire the remaining 51 per cent from Mr Smith’s investment vehicle, 530 Investments, to complete the deal and rebrand Fly540 into Fastjet.


Mr Smith says the deal has not been completed and his lawyers Mungu, Kimetto & Company gave Lonrho 14 days from January 9 to repay the Sh593 million or face legal action.


“We act for Five Forty Aviation Limited who have instructed us to demand from you the payment of US$6, 783, 551 being money due and owing to them,” said the letter to Lonrho seen by the Business Daily.


The letter was directed to Lonrho because records from Kenya’s registrar general’s office showed that 49 per cent stake held by the British investment firm had not changed to Rubicon by December 10.


Mr Smith claims that he agreed to guarantee the debts held by the Kenyan business that was financing other Lonrho aviation operations in Africa, especially the Tanzanian wing. He alleges that Lonrho undertook to repay the debts.


“The transaction hasn’t gone through. I still own 51 per cent of this airline,” said Mr Smith in an interview with the Business Daily on Wednesday.


But on Monday Fastjet maintained in a statement that they have settled Mr Smith’s dues and that the purchase of Five Forty Aviation Limited is a done deal.



“Don Smith and his partners have been paid all amounts due to them, a total sum of US$6.75m,” said Fastjet.

“There has never been any agreement that Lonrho Aviation would pay Mr Smith a further sum of US$7m. The purchase of Five Forty Aviation Limited has been fully consummated.


"Mr Smith certified in a document signed by him on 24 July 2012 that other than specified liabilities as set out in the document, there is no other liability or indebtedness due to him or any entity controlled by him.”


The ownership spat has forced Fastjet to abandon plans to rebrand the Kenyan wing of Fly540 and inked a fresh agreement with rival carrier Jetlink to establish another low-cost airline.


The new airline will be used as a platform to launch the Fastjet brand in Kenya after receiving approvals from the boards of two firms and licences from the civil aviation authority, said the Fastjet statement.

Source:

http://www.businessdailyafrica.com/Corporate-News/Shareholder-row-delays-takeover-of-Fly540/-/539550/1680146/-/item/0/-/9wl47rz/-/index.html
 
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