FULL TEXT: Fastjet Planning To Resume Flying On 21 April

Budget Airline has released a trading statement that communicated they are planning to resume trading on 21 April 2020, The Zimbabwean reports.

Read the full statement below:

FASTJET ZIMBABWE IS CURRENTLY PLANNING TO RESTART FLIGHT OPERATIONS ON TUESDAY 21 APRIL 2020

* ALL FASTJET GROUP EMPLOYEES HAVE ACCEPTED A VOLUNTARY SALARY REDUCTION EFFECTIVE FROM 1 APRIL 2020 OF UP TO 30%

* SALARY REDUCTION DEPENDING ON THEIR CURRENT SALARY SCALES, WITH LOWEST EARNERS AFFECTED LEAS

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* EXPECTS REDUCED GLOBAL OIL PRICES TO HELP TO CUSHION FINANCIAL IMPACT OF FORECAST LOWER PASSENGER DEMAND WHEN OPERATIONS RESTART

* TIMELINES DISPOSAL OF CO’S HOLDING IN FASTJET ZIMBABWE ARE NO LONGER PRACTICALLY ACHIEVABLE

* FASTJET ZIMBABWE HAS FULLY PAID OFF ALL OF ITS EMBRAER EMB145 AIRCRAFT

* INVESTOR CONSORTIUM CONFIRMED THAT IT REMAINS COMMITTED TO DIVESTMENT PROPOSAL

* INVESTOR CONSORTIUM INDICATED THAT IT WOULD POTENTIALLY FORESEE MODIFIED TERMS OF SALE NEEDING TO BE DISCUSSED, NEGOTIATED

* FASTJET ZIMBABWE’S UNFLOWN FORWARD TICKET SALES OBLIGATION WAS US$ 616,476 AS OF 31 MARCH, MUCH LOWER THAN TRADITIONALLY EXPERIENCED

* FEDAIR HAS ENTERED A RESTRUCTURING PROCESS

* RESTRUCTURING PROCESS OF FEDAIR WILL RESULT IN 55% OF ITS FULL-TIME EMPLOYEES BEING RETRENCHED

* IN 55% OF ITS FULL-TIME EMPLOYEES WILL BE RETRENCHED IN FEDAIR

* SIGNIFICANT PORTION OF 14 AIRCRAFT FLEET HAS BEEN TERMINATED BY FEDAIR

* FEDAIR SEEN DRAMATIC DOWNTURN IN FORWARD TICKET SALES & RESERVATIONS & MAJORITY OF PASSENGERS THAT WERE BOOKED HAVE DEFERRED THEIR TRAVEL

* FEDAIR HAS RETAINED LIMITED CREW TO OPERATE THESE SIX AIRCRAFT, WHICH WILL BE CORE FLEET RETAINED FOR REMAINDER OF 2020

* FEDAIR IN TALKS WITH AIRCRAFT FINANCIERS RELATING TO OWNED AIRCRAFT TO SUSPEND & DEFER CAPITAL REPAYMENTS ON AIRCRAFT LOANS UNTIL DEC 2020

* FEDAIR WOULD NEED ADDITIONAL CASHFLOW OF APPROXIMATELY US$ 1.0M BY 31 DECEMBER 2020

* BOARD IS REASSESSING GOING CONCERN ABILITY OF ENTIRE GROUP IN ITS CURRENT FORM, WITH BOTH FEDAIR AND FASTJET ZIMBABWE BUSINESSES RETAINED

* GROUP WILL CONTINUE TO HAVE SUFFICIENT RESOURCES TO MEET ITS OPERATIONAL NEEDS UNTIL END OF JUNE 2020

* IF UNABLE TO COMPLETE DISPOSAL/RAISE FURTHER NEW CAPITAL BY 30 JUNE DIRECTORS BELIEVE GROUP TO BE UNABLE TO CONTINUE TRADING AS GOING CONCERN

* FEDAIR WOULD NEED ADDITIONAL CASHFLOW OF APPROXIMATELY US$ 1.0M BY 31 DECEMBER 2020