telegraph.co.uk
Canada-based Avmax
Aircraft Leasing has written to FastJet saying it was removing the registration
of three planes leased by its Tanzanian operation. The trio of aircraft, flying
under the Fly540 brand, have allegedly run up unpaid leasing and maintenance
bills of almost $2m (£1.3m).
The letter from Avmax
vice-president Don Parkin, headed "Notice of De-Registration",
notified "Fly540/Fastjet of its continuing default" under the lease
terms.
It added: "As
such, the lessor has elected to deregister the aircraft from the Tanzanian
Civil Aviation Registry." The January letter said the deregistration would
"be commenced immediately".
Mr Parkin's letter
followed a warning in November that Fly540/FastJet was in default and
continuing "to refuse and neglect your financial obligations". Avmax
claimed the airline had undertaken to pay $150,000 per month for the rental and
maintenance of the planes.
Last week's letter was
sent to FastJet's chief financial officer Angus Saunders and Don Smith, the
majority owner of Five Forty Aviation, which has a separate £4.4m legal dispute
with the London-listed FastJet. Five Forty Aviation alleges FastJet has failed
to honour a deal to repay debts that the company guaranteed with Chase Bank in
Kenya – a claim FastJet refutes.
In a statement FastJet
denied it owed Avmax anything, saying: "There has never been a contractual
arrangement between Avmax and FastJet plc and therefore FastJet plc does not
owe any money to Avmax. Don Smith, through Fly540 in East Africa entered into
contractual relationships with Avmax and under these commercial arrangements
owes money to Avmax for unpaid aircraft lease rentals and maintenance
reserves."
A spokesman for Mr
Smith wholly denied that, saying: "The admission document for the listing
of Fastjet on AIM states that it owns 90pc of Fly540 Tanzania through its
acquisition of Lonrho Aviation (BVI) Ltd. As such, the action taken by Avmax
against Fly 540 Tanzania has no implications for Five Forty Aviation or its
chief executive, Don Smith."
FastJet also
maintained that Avmax's notice related to a single Canadair Regional Jet parked
in Nairobi, though the letter refers to three aircraft.
Asked for comment Mr
Parkin said: "I am flying to Kenya. We have studied the documents relating
to FastJet's acquisition of Fly540 and feel there is a legal link between
Fly540 Tanazania and FastJet. The Tanzania business owes us almost $2m. I plan
to pursue it in court."
The dispute over
unpaid leasing bills is the latest to hit FastJet, which is also facing a
£1.5m tax claim from Tanzanian authorities and claims in Kenya over allegedly unpaid fuel
and maintenance bills.
FastJet was formed last June via a £55m all-share deal that saw
Lonhro's African aviation wing reverse into Aim-listed Rubicon Diversified
Investments. The company was renamed FastJet – a brand owned by Sir Stelios,
who was handed a 5pc stake and took a €50,000 (£43,500) per month consultancy
fee. Operating in Kenya, Tanzania, Angola and Ghana, FastJet said it would
"give people used to 12-hour bus rides the option to fly".
2 Comments
FastJet – Jetlink owners set to meet UK executives next week
ReplyDelete17th Feb
http://www.directorstalk.com/fastjet-jetlink-owners-set-to-meet-uk-executives-next-week/
Thank you Carol for visiting and for the information. Keep an eye for more updates!
ReplyDelete