A legal row involving African low-cost start-up carrier Fastjet and the boss of its predecessor is on the verge of being resolved.

The airline, backed by easyJet founder Sir Stelios Haji-Ioannou, was involved in a public dispute with Fly540, the original owner of its fleet of aircraft.

But Fastjet announced this morning that it had entered into an agreement with Don Smith, chief executive of Five Forty Aviation Limited which trades in Kenya as Fly 540, “with a view to resolving recent disputes and establishing a way by which the two parties can work together to maximise the value and business prospects of both Fly 540 and fastjet”.

The memo of understanding (MOU) includes an agreement by both parties to stop legal proceedings in “order that mutually beneficial and constructive resolutions are discussed and implemented”.

Fastjet chief executive Ed Winter said: “The signing of this MOU provides a positive platform for Fastjet to strengthen its East African Hub”.

“Both Fastjet and Don Smith are pleased to be putting the unfortunate, highly publicised events of the past few months behind us.

“Don Smith remains the chief executive of the Kenyan business and we are pleased to have him as part of the Fastjet/Fly540 team.”

The carrier plans to provide “further positive updates” in due course.