TCAA seeks to halt fastjet operations in Tanzania

Lauren Eldershaw
By Lauren Eldershaw December 18, 2018 13:12

TCAA seeks to halt fastjet operations in Tanzania

The Tanzania Civil Aviation Authority (TCAA) has stated that Fastjet Tanzania no longer qualifies to operate in the country due to frequent cancellation of flights and indebtedness.

Fastjet is claimed to owe $606 million TCAA through provision of services, including security. The TCAA has urged all service providers that were owed by Fastjet to send their invoices to the TCAA so that the authority could order the airline to pay its debts. The TCAA has given Fastjet 28 days to submit its financial and business plans.

Johari said currently the airline had insufficient planes for flights, a situation that had led the airline to lose qualifications to do business in the country.

“We are calling upon people to look for alternative airlines as Fastjet cannot operate,” he said.

On December 13, fastjet announced that it had met the conditions demanded of an equity refinancing transaction and it has subsequently applied to the London Stock exchange for the new shares to be admitted to trading on AIM. The admission became effective on 17 December 2018.

As of December 12, the company confirmed that its current cash requirements were sufficient to allow it to continue operating until December 21, 2018, with cash balances of US$7 million, of which US$6.5 million is restricted cash held inside Zimbabwe.

Lauren Eldershaw
By Lauren Eldershaw December 18, 2018 13:12