Fastjet denies 'false and damaging' allegations

Africa's first low-cost carrier, fastJet, made a firm statement on Wednesday, in which it said it 'categorically refutes' claims made by Don Smith, the Chief Executive Officer of its Kenyan subsidiary, Fly540 Kenya, regarding an alleged unpaid consideration for the purchase of its interest in Fly540 Kenya and 'numerous other unsubstantiated claims made through the press in recent weeks'.

Africa's first low-cost carrier, fastJet, made a firm statement on Wednesday, in which it said it 'categorically refutes' claims made by Don Smith, the Chief Executive Officer of its Kenyan subsidiary, Fly540 Kenya, regarding an alleged unpaid consideration for the purchase of its interest in Fly540 Kenya and 'numerous other unsubstantiated claims made through the press in recent weeks'.

The group described the press reports as misleading, false and damaging.

Fastjet Chairman, David Lenigas, said: "fastjet is committed to conducting its business in an open, transparent and entirely legal manner through the proper channels. The company does not intend to continue rebutting false allegations through the press, but will take legal action over any further such claims.

"fastjet has paid Don Smith and his partners well in excess of $6.0m for their interest in Fly540 and associated brands and we will now aggressively seek to have our purchase contracts enforced."

He continued: "The company will not tolerate coercive and underhand practises. Issues created by Don Smith in Kenya have not and will not affect fastjet's overall plan of becoming Africa's first pan-continental low-cost carrier."

"The company's position in Kenya, just one small part of our overall expansion plan, has already been secured through its MoU with Jetlink, announced last week. We feel that Jetlink, which already has IOSA accreditation, is a far better Kenyan partner for fastjet given our standards of safety, security and reliability. Following an extensive review, we concluded that Jetlink would provide a better long term launch-pad for fastjet due to its superior infrastructure and accreditations to service and manage a fleet of modern large jet aircraft."

"Africa carries nearly 4.0% of global passenger air traffic, but unfortunately today accounts for nearly 25% of the world's aviation accidents. Our mission to bring safe air travel to the people of Africa requires high standards and constant vigilance that these are being met."

The share price rose 3.82% to 3.40p by 08:45.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
How to find companies that can thrive in the post-Covid world
Advertisement Feature

How to find companies that can thrive in the post-Covid world

Many sectors of the global economy will return to something resembling pre-pandemic status, but others will take far longer to recover.
8 Apr 2021