Fastjet clears Sh7bn debt to return to skies

Dar es Salaam. Fastjet Tanzania has cleared a Sh7 billion debt it owed the Tanzania Civil Aviation Authority (TCAA) and other service providers, the national aviation regulator has said.

The move further reaffirm the commitment of the once low cost carrier to return to Tanzania’s skies after seizing operations six months ago over alleged cancellation of trips and a huge debt accumulation.

“Fastjet had until last December paid all debts as per our directive except those it owes employees,” TCAA director general Hamza Johari said in an interview on the sidelines of the Civil Aviation Forum on Monday.

He was not ready to go into details about the debt Fastjet owed the employees because the matter was still a subject to court determination.

Mr Johari said the troubled airline had already submitted its business plan which outlines, among other things, the airline’s future management structure as conditioned by the regulator.

TCAA also required Fastjet to appoint an ‘accountable manager, who must be an expert in aviation matters.

Despite meeting all, or, majority of the requirements, Fastjet’s application for a new licence was turned down last Friday after failing to meet the April deadline.

The decision over the matter deferred to the next licensing meeting slated for November, this year.

Mr Johari said they received the Fastjet’s application a day before the 18th May, 2019 ordinary board meeting.

“They submitted a business plan a day before a board meeting. As it stands we were not able to work on their application, so, they will have to wait until the next licensing meeting,” noted Mr Johari.

A public notice issued by TCAA a week ago shows Fastjet has submitted a new application for both scheduled and non-scheduled air services within and outside Tanzania.

The notice listed about 10 routes that the company seeks to ply including the international ones to Johannesburg, Lubumbashi, Lusaka, Kigali, Moroni and Dubai. The validity of the licence of Fastjet Tanzania expired on January 3, 2019.

This was after the troubled airline failed to meet criteria of the air transport regulator, including payment of licence fees and the relatively huge debt.

Fastjet chairman Lawrence Masha told The Citizen on Friday they were sorting out all pending issues before their return to the skies.