Public limited company Fastjet is wary of its market shares in London Stock Exchange (LSE) sub-group market, AIM market as the airline has raised concerns over having enough funds to carry on with the trading. The budget carrier is understood to be in talks with its shareholders on a possible new funding or way forward to curb the financial conundrum drowning the company’s finances.
The low-cost carrier recently celebrated its fifth anniversary in Tanzania where it carrier out its initial operations. However, the success seem to have been watered down with the existing predicament facing the airline. The airline is in need of funds to continue its operations or severe decisions might have to be undertaken for the future.
The airline seems to be in the same category as other African airlines that are looking to boost their operations. Uganda Airlines is on the edge and is sourcing help from China to revive the former national carrier, hoping to kick off its operations in three months time as understood by the latest report. The Government is adamant to kick off its business as early as possible to save the aviation sector.
Air Tanzania is under the metamorphosis of regaining its glory as it seeks to soar one more time. The company is adding more craft to its fleet in the hope of being competitive in the regional air services, a territory that has been conquered by Ethiopian Airlines, Africa’s biggest airline. Kenya Airways is following closely with potential dominance as well.
There is no guarantee of the outcome for Fastjet as the decision will be made by the major shareholders. The company dreams of becoming Africa’s low cost pan-African airline but with the mountain to soar above before it, the vision may take longer than expected. Should the fund raise be unsuccessful, the company will be compelled to remove its tradings from AIM market, until it can support itself.
ALSO READ: Jambojet cuts fares by 50 per cent in 72 hour sale offer
The move would have a ripple effect to its operations in the business world but could be necessary until a possible solution is founded.
