Monday, February 15, 2016

Tanzania: Additional Kenyan Route Earns Airline 'Largest Low Cost Carrier in Africa' Title


African LCC group Fastjet is in the middle of the largest expansion of its international route network since it commenced operations three years ago, with four new routes being launched in early 2016.
Fastjet is now the largest LCC in Africa's international market and plans further expansion throughout 2016, including from a new base in Zambia.
Two newly launched routes to Kenya from its original base in Tanzania represent a breakthrough after three years of regulatory delays. Two new upcoming routes to South Africa from its second base in Zimbabwe are also a major milestone as they represent the first international routes outside Tanzania, a stepping stone in Fastjet's connect the dots pan-Africa strategy.
According to an analysis carried by the Centre for Aviation (CAPA), Fastjet has huge opportunities for further growth - particularly after the suspension of services by flyafrica.com, the only other pan-African LCC group - but there are also huge challenges to overcome still, including regulatory hurdles and unfavourable economic conditions in some of its markets.
The latest regulatory setback occurred in Malawi, prompting Fastjet to suspend services to Lilongwe. Fastjet launched operations in late 2012 with a Tanzanian operating certificate and three A319's based at Dar es Salaam.
Multiple regulatory setbacks prevented the group from launching several planned international routes from Tanzania and establishing affiliates in other African countries.
As a result Fastjet's initial fleet was underutilised, impacting profitability, as the group was confined primarily to Tanzania's relatively small domestic market. Fastjet Tanzania was finally able to launch its first international route in Oct-2013, from Dar es Salaam to Johannesburg, after eventually overcoming regulatory delays with South African authorities.

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