Fastjet facing aircraft repossessions

Victoria
By Victoria February 4, 2013 13:58

Fastjet facing aircraft repossessions

Avmax Aircraft Leasing has informed FastJet that it is removing the registration of three of its aircraft leased by FastJet’s Tanzanian operation, Fly540, due to a “continuing default”.
FastJet has denied it owed Avmax anything: “There has never been a contractual arrangement between Avmax and FastJet plc and therefore FastJet plc does not owe any money to Avmax. Don Smith, through Fly540 in East Africa entered into contractual relationships with Avmax and under these commercial arrangements owes money to Avmax for unpaid aircraft lease rentals and maintenance reserves.”
Don Smith denies this: “The admission document for the listing of Fastjet on AIM states that it owns 90pc of Fly540 Tanzania through its acquisition of Lonrho Aviation (BVI) Ltd. As such, the action taken by Avmax against Fly 540 Tanzania has no implications for Five Forty Aviation or its chief executive, Don Smith,” said a spokesman on behalf of Smith.
This action is separate to the £4.4m legal dispute between Five Forty Aviation and FastJet reported last week.
FastJet is also facing a £1.5m tax claim from Tanzanian authorities and claims in Kenya over allegedly unpaid fuel and maintenance bills.

Victoria
By Victoria February 4, 2013 13:58
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