Since fastjet signed an agreement to dispose of its holding in Fly540 Kenya, the airline can focus on positioning fastjet Kenya as a new entity that will operate to the same low-cost model and international standards of safety, reliability and punctuality as fastjet Tanzania, said interim chairperson and CE of fastjet, Ed Winter.
Fly540 Kenya, the loss-making investment, was inherited as part of the acquisition from Lonrho Aviation, by Don Smith, Director of Fly540 Kenya.
All legal and financial ties between the two companies have been dissolved and the groups have indemnified one another against any and all liabilities relating to the segregation of the businesses.
Winter said: "Following a period of complex negotiations, we are delighted to have achieved a successful outcome for all parties. After a thorough and lengthy evaluation of Fly540 Kenya, we concluded that converting the business into the fastjet low-cost model would not be economically viable.”
