Fastjet goes into tailspin as cash SOS continues
The African budget airline says it is in urgent need of more cash within a month to keep operating
Bengaluru — Fastjet’s shares shed more than half of their value on Wednesday after the African budget airline said it needed more cash within a month for it to continue operating. Fastjet, launched in 2012 and modelled on the likes of no-frills airlines easyJet and Ryanair Holdings, has been running short of cash for more than two years and it was unclear if investors will continue to back it. "The company is currently in active discussions with its major shareholders regarding a potential equity fundraising, in the absence of which the group is not able to continue trading as a going concern," the airline said in a statement. Fastjet’s shareholders include activist M&G Investment, Janus Henderson and South African carrier Solenta. It was founded by Haji-Ioannou, the son of a shipping magnate. Fastjet added that talks with some shareholders had been positive and discussions were ongoing, though it did not guarantee success. The budget airline has offered shares for cash at least twi...
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