Dar’s FastJet stable, says results ‘historical’

Fast Jet Tanzania said its operations are going on well despite a report from auditors in London, UK that raised doubts if the airline can continue to trade.

The General Manager of FastJet Tanzania, Mr Tim Lee- Foster said the airline operations in Tanzania were going on smoothly and were getting positive feedback from the market since they began operations in Tanzania late last year.

“Our operations are reported to TCAA, so is our performance… reports cited from Europe are about PLC (group) results,” Mr Lee-Foster told the ‘Daily News over the phone yesterday. Tanzania Civil Aviation Authority is the regulator of air services in Tanzania.

Mr Lee-Foster said auditors’ reports that raised alarm were about operations of FastJet in the entire African continent and covered a period under which its operations in Tanzania had barely started. 

“The reports from London are not relevant to our operations in Tanzania,” he said.

Reports from London said auditors from KPMG warned that the future of FastJet, Africa’s first real low-cost airline, hung in balance after the group made a loss after tax of 56million US dollars (about 89.6bn/-) up to December 2012. 

The report indicates that in the said period, FastJet Africa, saw an operating cash outflow of 19.9million US dollars (31.3bn/-).

The auditor said these figures and the fact that its prospects depend on improved trading and extra funding were all reasons for the qualification.

The qualification was the result of sizeable losses and write-downs for the 18 months to December 2012. 

FastJet Tanzania CEO, said there were no reasons to get concerned because the auditors’ report was about the entire FastJet operations in Africa and covered a period in which its operations in Tanzania had hardly started.

He said FastJet Tanzania was still operating three airplanes -- Airbus 319 -- and for the time being they were expecting to start regional operations after getting necessary approvals.

The TCAA Director General Mr Fadhil Manongi said financial results in the auditors’ report talked about entire FastJet operations in the continent, which might paint a wrong picture for individual country operations. 

“We are looking at the FastJet country’s account not for Africa because the airline is registered in Tanzania as a separate autonomy firm,” Mr Manongi said.
Source: The Daily News, reported from Dar es Salaam
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