African market’s fastjet acquires IP rights from easyGroup

As it looks to consolidate its foothold in the African commercial airline market, fastjet has acquired all intellectual property rights from easyGroup. Up until now the carrier had paid royalties to the easyGroup and Sir Stelios Haji-Ioannu, who established the brand in 2013.
fastjet has paid the sum of £2.5 million (US$3.2 million), which represents a considerable saving on royalties that would have been amortized over the next five years.
The airline has made steady progress in implementing stabilization efforts, including a re-fleeting process, relocation of its headquarters to Johannesburg from London, and a right-sizing of its operations in both Zimbabwe and Tanzania. According to fastjet, these moves should help see the company achieve a break-even cashflow by the end of Q4 2017. The carrier is also aiming to leverage its relationship with Solenta Aviation Holdings, a strategic investor who acquired a shareholding in the airline in January 2017 and which operates in several African countries.
According to a statement from Haji-Ioannou “fastjet is a great brand in all its African markets, making it a highly valuable asset for the company. I have accepted the view of the current board that the company should own its own brand rather than license it from me. I feel we have agreed a fair price for its transfer – US$2.5 million – which is less than what the company would have had to pay over the next five years. I still hold shares worth about £1.3 million (US$1.7 million) in the company and as such I will be a supportive shareholder, hoping to realise significant upside potential as fastjet grows and prospers. From the decisive actions thus far taken by the new Management and Board, and early indicative outcomes, I am encouraged that fastjet’s direction of travel is now on the right course”
Last week, fastjet was recognized as Best African Low-Cost Airline by the Skytrax World Airline Awards at the Paris Air Show.