Low cost carrier, fastjet Zimbabwe intends to resume operations on April 21, two days after the lapse of the country’s lockdown period, a trading statement has resumed.
By Staff Reporter
The trading statement revealed that all fastjet employees have accepted a voluntary salary reduction effective from the beginning of April
Furthermore, the company had reduced salaries of its staff.
The company was, however, optimistic that its financial situation would not take a massive knock, as it expects that reduced global oil prices will help cushion it from the financial impact from the projected low passenger demand.
In March, fastjet said they were confident they had sufficient resources to meet its operational needs until the end of June 2020, but this was before the COVID-19 pandemic disrupted worldwide air travel.
To address future funding requirements, fastjet said its discussions with an investor consortium led and underwritten by Solenta Aviation Holdings Limited and other local investors in Zimbabwe in relation to the disposal of the company’s holding in fastjet Zimbabwe were subject to certain preconditions.
The company had hoped that these pre-conditions would be sorted by the end of March and that the transaction would be completed, subject to shareholder approval, this month.
However, due to lockdowns in Zimbabwe due to the coronavirus, these timelines were no longer possible.
Additionally, the shutdown of flights of fastjet Zimbabwe will have a further impact on the overall fastjet Zimbabwe business and obligations, as revenues have stopped whilst the fixed costs continue, the Aviator website reported.