African budget carrier Fastjet today confirmed it is in talks with potential long-term backers, including easyGroup Holdings, the investment vehicle of easyJet founder Sir Stelios Haji-Ioannou.
“The company continues talks with potential long-term investors,” Fastjet said.
“The company confirms that easyGroup Holdings is, amongst others, a party to these discussions.
“A further announcement regarding the outcome of this process will be made in due course.”
The disclosure followed press speculation regarding the financing intentions of the airline.
Sir Stelios takes fees in royalties and consulting contracts and has a shareholding in the venture of less than 3%.
The Times reported that Fastjet has started to market a fundraising through a placing of shares in an effort to raise £10 million to expand further from its base in Tanzania with possible services in Kenya and Zambia.
The airline needs to acquire three more Airbus A319s in addition to the three it operates in Tanzania, plus another two aircraft to begin operations in Zambia and then another three for the Kenyan market, the newspaper reported.