Fastjet mulls expansion to South Africa routes
Low cost carrier Fastjet is exploring the option of diversifying its route to South Africa region as it looks at new ways to grow and make profit in the wake of dwindling fortunes.
According to its chief executive officer Nico Bezuidenhout, the continent’s most industrialized economy is too big to stay out of.
While the Africa-focused carrier already connects Johannesburg with its hubs in Tanzania and Zimbabwe, it has no internal services in South Africa.
The market “cannot be ignored,” Bezuidenhout, 40, said, adding that the airline’s headquarters are relocating from London to Johannesburg.
Bezuidenhout said he''d like to make progress in South Africa next year. “Would we consider entering a joint venture agreement?” the CEO said. “Would we consider M&A activity or would we consider partnering with somebody and doing a greenfield operation? I think all of those options are on the table.”
“The South African aviation market is reasonably overtraded,” Bezuidenhout said. “When one enters this market you have to do it carefully and in a considered and measured manner. So we are working on developing that plan.”
Fastjet is also evaluating expansion in other markets in southern Africa, though Bezuidenhout said it will resist deploying excess capacity by adding routes too quickly, describing that as “the quickest way that you drive an airline into the ground.”
