2 February 2013

Kenya: Fastjet, Jetlink Weigh Joint Deal

Dar es Salaam — Jetlink, may be in talks with FastJet for a joint venture.

Fastjet, the first pan African low-cost airline will automatically be entered into Kenya's airline market after a deal they intend to sign with Jetlink.

Jet link is a privately-owned airline based in Nairobi, that was grounded some months ago over South Sudan's failure to permit repatriation of funds kept in Juba's banks from ticket sales worth over US$2 million.

Fastjet had since last year longed to enter Kenya but the regulatory procedures had delayed the airline's vision. Fastjet said during their inaugural flight that their second base would be Nairobi, Kenya, once their A319 aircraft was approved.

"We look forward to bringing a great, reliable and affordable service to the people of EAC," said a Fastjet official then.

Once established in East Africa, FastJet has plans to launch in Accra, Ghana and Luanda, Angola.

Under the Memorandum of Understanding, Fastjet and Jetlink are working out measures to create a joint venture which will give a platform for the launch of the Fastjet brand in Kenya.

The MOU is subject to a number of conditions precedent including board and any other necessary approvals, the Fastjet Chief Executive Officer, Mr. Ed Winter said in Dar es Salaam.

Jetlink is a Kenya based airline that was launched in 2004. It has traffic rights for all domestic flights in Kenya, as well as a number of regional destinations.

Jetlink operations were temporarily suspended since November 2012 for restructuring.

Mr. Winter stressed that the project represents a great opportunity for both parties and discussions are progressing well.

The Jetlink Chief Executive Officer, Capt. Elly Aluvale said that following the recent successful launch of Fastjet's low cost operations in Tanzania, they are looking forward to the prospective joint venture.

Copyright © 2013 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.