The new Fastjet.com start-up carrier planned by easyJet founder Sir Stelios Haji-Ioannou could launch operations in Africa after it was revealed earlier today that entrepreneur’s easyGroup Holdings had entered into a conditional agreement with investment firm Rubicon Diversified to explore the possibility of launching an airline in Africa.
In a formal statement to the London Stock Exchange, Rubicon Diversified Investments said it is proposed that easyGroup will “become a shareholder in Rubicon” and it will use the services of Stelios and easyGroup's “experienced aviation management team” to provide “general strategic, management and branding advice on the feasibility of implementing a low-cost, point-to-point, no frills, all jet aircraft business model for Africa”.
The announcement follows just over two weeks after Rubicon Diversified announced its proposed new strategy in the aviation sector and the proposed appointment of David Lenigas and Geoffrey White (the Executive Chairman and CEO of Lonrho Plc respectively) to the Board of Directors of the company.
Under the proposed arrangements, and conditional on the resolutions being approved at the GM, easyGroup will be issued shares in Rubicon representing an initial five per cent holding subject to certain conditions and will have the option to subscribe for a further ten per cent of the Company's enlarged issued share capital.
According to Rubicon Diversified, Sir Stelios and easyGroup's management team will “bring significant airline experience” in the areas of operations, marketing, branding, IT, fleet selection and finance to the Company. The company will provide the investment firm with branding advice which, if accepted, would provide Rubicon with exclusive rights to use the fastjet.com brand for an initial period of twelve months. easyGroup will also earn a royalty fee for ten years in relation to the Company's use of the fastjet.com brand once certain conditions have been met, which includes “the delivery of a western standard jet aircraft” liveried as fastjet.com
"We are very pleased to have secured the management team of easyGroup to advise us on our proposed strategy of building a world class aviation company with a focus on the significant potential in Africa,” said a spokesman for Rubicon Diversified. “The experience and track record of the easyGroup management team in this area is unparalleled. This experience, coupled with the deep knowledge of African business of our new shareholder Lonrho PLC and our proposed new board members David Lenigas and Geoffrey White, places Rubicon in a strong position to deliver successfully on its proposed new strategy for developing aviation services in Africa".
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