(Bloomberg) — FastJet Plc is approaching potential South African investors about buying stakes to finance a route expansion in the east and south of the continent and support its effort to become the first pan-African discount airline.
“We are an African company, even though we are listed in London,” Chief Executive Officer Ed Winter said in an interview in Cape Town on Thursday. “It makes a lot of sense to have South African shareholders” for potentially “significant” investments.
FastJet, which has its corporate headquarters at London Gatwick airport, operates three leased short-haul Airbus Group NV A319 airliners from a base in the Tanzanian port city of Dar es Salaam. The Tanzania unit, which began operating in November 2012, had its first profitable trading month in December 2014. The carrier intends to set up operations in Kenya, Zambia, Zimbabwe, Uganda and South Africa in the next few years.
While FastJet’s planes are almost fully utilized, it has scaled back efforts to secure as many as 10 more aircraft by December due to delays in securing licenses, Winter said.
FastJet has been unchanged in London trading for about a week at 1.25 pence, valuing the carrier at 20.5 million pounds ($30.5 million). Even after rising this year, the stock is down 37 percent from 12 months ago.
The current route network serves four towns in Tanzania and one city apiece in South Africa, Zambia, Zimbabwe and Uganda.
FastJet has also applied for operating permits in Zimbabwe, and is looking to introduce flights linking the capital, Harare, with Johannesburg.
“Things take a bit longer than you expect,” Winter said. “I’d like to make things more efficient here and move forward but it’s the way it is. We are still absolutely confident that the market opportunity is here, the model is working and opportunity to expand is here.”
