50 SKY SHADES - World aviation news

Shares in African budget airline Fastjet drop almost 11 per cent

Download: Printable PDF Date: 24 Mar 2016 01:15 category:
Publisher:
Shares in African budget airline Fastjet drop almost 11 per cent - Finance publisher
Krista Kuznecova
Aircraft: Airplanes
Source: Citya.m

Fastjet's share price plunged yesterday, dropping by 10.95 per cent to close at 30.50p.

The stock dipped on the first day of trading since Easy Group owner Sir Stelios Haji-Ioannou sent a letter to the African budget airline, threatening legal action over a series of alleged licence breaches. Easy Group - parent company of EasyJet - owns the Fastjet brand.

Among other grievances, Haji-Ioannou said mystery shoppers found that Fastjet was not accepting credit cards at ticket offices in Dar es Salaam, which "falls below the standard expected". "This also reduces revenue," he added.

EasyGroup has demanded answers from Fastjet by noon on 31 March. If the airline does not meet this deadline, the brand licence will be terminated, meaning the African company will have to cease carrying out business under the Fastjet name. If Fastjet fails to comply with Easy Group's demand, the travel tycoon said, the company will go to the High Court seeking an injunction and damages from the airline.

Fastjet said yesterday that its board is "currently reviewing the letter with its legal advisers and will respond in due course".



Loading comments for Shares in African budget airline Fastjet drop almost 11 per cent...


Recommended

Bombardier to Provide Component Management Support for Philippine Airlines’ Q400 Aircraft

Bombardier Commercial Aircraft announced that Air Philippines Corporation, operator of Philippine Airlines affiliate airline PAL Express, has signed an eight-year Smart Parts agreement to provide comp...

New Singapore Airlines A380 takes to the skies

First aircraft delivered with carrier’s latest cabin products and innovations  Singapore Airlines has taken delivery of the first of five new A380 aircraft scheduled to join the carrier&...

Boeing Board Raises Dividend 20 Percent, Establishes $18 Billion Share Repurchase Authorization

The Boeing board of directors declared the company's quarterly dividend will increase 20 percent to $1.71 per share. The board also replaced the existing share repurchase program wi...

Aero-Dienst completes 120-month Global XRS check for Global Jet

Aero-Dienst, Nuremberg, completed the most comprehensive maintenance event on a Global Express XRS to the customer’s satisfaction. The workscope of the 120-month inspection included the dism...