Mozambique: Fastjet Suspends Flights in Mozambique

Maputo — The London and South Africa based budget airline Fastjet announced on Monday that it is suspending its flights on Mozambican domestic routes as from next Saturday, 26 October.

It gave as its main reasons the fall in expected revenue from its Mozambique operations, and the competition it is now facing from Ethiopian Airlines, whose subsidiary Ethiopian Mozambique Airlines is now operating flights on several of the country's main domestic routes.

A statement from Fastjet said that "competition in Mozambique began to intensify at the end of 2018 with the market entry of Ethiopian Airlines as a domestic carrier."

It blamed this competition for the drop in Fastjet's revenue from Mozambique in the first half of 2019 to1.9 million US dollars from 4.2 million dollars a year ago.

Mark Hurst, Fastjet interim chief executive officer, said: "The detrimental financial impact of ongoing supply and demand challenges means that suspending our Mozambique operations is the right course of action at this time."

The suspension includes the flights between Maputo and Tete, Beira and Quelimane, under Fastjet's code-sharing arrangement with Mozambique Airlines (LAM).

Despite its complaints about an "excess supply" of flights on the Mozambican domestic market, Fastjet promises to return to Mozambique "when the general demand for air transport in the country increases sufficiently in comparison with the capacity supplied to allow long term financial viability".

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