Report: fastjet selling stake in Tanzanian subsidiary

Fastjet, which has warned it might not survive without equity fundraising, is in the process of selling off the company’s stake in the African LCC’s loss-producing Tanzanian subsidiary, according to local media reports. In a Nov. 9 London Stock Exchange funding update, the airline said operations would continue in November “due to some improvement in trading, cash generation and internal efficiencies.” The company had previously said operations could cease by the end of October. As of Nov. 7, the company had cash balances of $3.9m, of which $3m was restricted in Zimbabwe, according to the update. London-based fastjet holds 49% of the Tanzanian operation, which will be transferred to Tanzanian interests, according to the media reports. Former Tanzanian cabinet minister Lawrence Masha was appointed Nov. 6 as fastjet Tanzania’s first executive chairman. “Mr Masha will be working closely with the company’s management team to oversee the smooth operation of the airline and the [equity] buyout which is currently in progress,” fastjet Tanzania GM Derrick Luembe told Tanzanian newspaper The Citizen.<br/>