Fastjet looks to move into South African market

Low cost airline fastjet (LON:FJET) has taken a “major step” towards the acquisition of defunct South African carrier 1 Time.

It has filed what’s called a letter of intent with the liquidators of the airline in Johannesburg to enable them to negotiate a compromise settlement with the creditors.

Chief executive Ed Winter said: “fastjet is really excited about the opportunity to serve the South African air travel market and this is a very significant step towards making that a reality.”

Whilst 1 Time remains the AIM-listed group’s preferred route, it said it continues to explore alternative partnerships to launch the business in South Africa.

Using Sir Stelios Haji-Ioannou’s easyGroup as consultants, fastjet is currently building the first pan-African budget carrier equipped with a modern fleet of jets.

Its last update it revealed it raised almost £16mln from a new cornerstone investor.