Fastjet in talks over Kenya tie-up

High-flying fastjet (LON:FAST) is close to creating a joint-venture with a local operator to launch the low cost brand in Kenya.

Would-be partner Jetlink owns the traffic rights for all local destinations, as well as a number of regional routes, but is currently being restructured.

Chief executive Ed Winter said discussions to cement a definitive agreement are “progressing well”.

“A joint-venture between fastjet and Jetlink will facilitate the launch of the fastjet brand in Kenya within the next few months with immediate access to domestic and regional destinations,” Winter added.

“Kenya is the major economy in East Africa and launching here is an important step towards fastjet becoming a pan African low cost airline, bringing safe, reliable and affordable air travel to more and more people.

“Talks are not yet finalised but we certainly envisage a combination of Jetlink’s strengths and fastjet’s interest in Fly540 Kenya creating the optimum platform to launch the fastjet brand in Kenya."

Separately fastjet has rejected a report that owes money to one of the founders Five Forty Aviation, the group’s Kenyan subsidiary.