EasyJet eyes African carrier

News at Gatwick 05/12/2011

Planes may fly half full Wednesday amid strikes : December 2011 : Gatwick Express utilises new gates

EasyJet’s parent firm is exploring the possibility of starting up a new African low-cost airline.

EasyGroup, backed by EasyJet founder Stelios Haji-Ioannou, said this week that it had entered an agreement with UK investment group Rubicon to see if a newly launched no-frills carrier based in Africa would be sustainable.

The terms of the agreement say that EasyGroup will be issued a 5 per cent stake in Rubicon with the option of acquiring another 10 per cent, according to reports. However the proposal is subject to approval by Rubicon’s board at its general meeting, scheduled for 13 December.

Rubicon chairman Robert Burnham said in the company’s official statement that Stelios and EasyGroup’s managerial, branding and strategic expertise in the aviation industry would be used to determine the feasibility of an all jet low-cost airline in Africa in exchange for a stake in Rubicon.

Stelios is to head a team of five executives that will provide advice for Rubicon. If the proposal is accepted, the firm will get exclusive rights to Stelios’ fastjet brand name for the first year of operations.

The news follows Stelios’ announcement earlier in the year that he was planning to launch an additional carrier under the fastjet name. The move further aggravated growing tensions between the EasyJet founder, who by far remains its largest shareholder, and its current management.

Planes may fly half full Wednesday amid strikes : December 2011 : Gatwick Express utilises new gates

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