Fastjet Grounds Tanzania Flights After Notice to Cancel Permit

(Bloomberg) -- Troubled budget carrier FastJet Plc grounded its Tanzanian flights on Monday after the nation’s civil aviation agency issued a 28-day notice for the airline to streamline operations or have its license revoked.

“FastJet Tanzania would like to inform its customers who had booked a ticket to travel in December and January that it has temporarily halted its operations," the airline said in a statement.

Passengers will start receiving refunds from Dec. 20, the airline with both domestic and regional flights said. “In addition, all companies and organizations that have been conducting business with FastJet are requested to get in touch with the airline.”

The Tanzania Civil Aviation Authority earlier Monday asked the Johannesburg-based airline to stop ticket sales and submit a turnaround proposal, Director General Hamza Johari said by phone from the commercial hub Dar es Salaam.

“If they don’t meet these conditions then we will revoke the license,” he said.

FastJet, founded six years ago with the ambition of becoming the first discount airline spanning sub-Saharan Africa, has struggled to make a profit. Chief Executive Nico Bezuidenhout warned it could close Tanzania’s operations unless shareholders pumped in more funds.

To contact the reporter on this story: Ken Karuri in Dar es Salaam at kkaruri@bloomberg.net

To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Helen Nyambura, Shaji Mathew

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