Mozambique: after two years in the market, Fastjet announces suspension of its flights

By
Arnaldo Cumba

The low-cost African airline Fastjet has
announced it will suspend operations in Mozambique, from midnight on Saturday
26 October “following continued losses and the ongoing oversupply of available
seats by other carriers”

According to the company, that is operating in
Mozambique since 2017, the competition in the country began to intensify at the
end of 2018 with the market entry of Ethiopian Airlines as a domestic
carrier. 

“This increase in aircraft and capacity
supply, coupled with two category 5 tropical cyclones at the beginning of 2019
which suppressed passenger demand, led fastjet to scale back frequency on
routes and to reduce overall capacity in Mozambique” Fastjet said in a
statement.

“As a result, fastjet Mozambique reported
significantly reduced revenue of US$1.9m in the first half of 2019 (H1 2018:
US$4.2m) out of total revenue for the Group of US$19.7m.” It added

Following continued losses (US$2.4m in
the first half of 2019) and the ongoing oversupply of available seats by other
carriers, fastjet has decided to suspend all flight operations in Mozambique.

However, according to Mark Hurst, fastjet
Interim Chief Executive Officer, the company remains committed to returning to
Mozambique once demand for air travel in the country increases sufficiently
compared to capacity supplied.

Fastjet entered Mozambique in partnership
with Solenta Aviation Mozambique, a division of its largest shareholder,
Solenta Aviation, which is also its operational partner in the country.

source: https://panafricanvisions.com/2019/10/mozambique-after-two-years-in-the-market-fastjet-announces-suspension-of-its-flights/

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