Low cost carrier, Fastjet exits kenyan space along with three others faster than expected

Barely eleven month since it entered the Kenyan market,low cost carrier, Fastjet has exited the Kenyan market citing low demand.

 

The UK budget airline will on Monday, 5th Dec 2016 also suspend Dar es Salaam-Entebbe flights as well as between Victoria Falls in Zimbabwe and Johannesburg in South Africa for similar reasons..

Fastjet entered the Kenyan space early this year on January 11, hoping to shake up the aviation industry by offering cheap flights, far lower than those offered by Kenya airways and its associate precision air.

Enjoy the hustle and bustle of the spice markets in Dar es Salaam, or kick back with a drink in one of the city’s many restaurants and bars at the lowest available prices a section of its website read.

Daily flights to Dar es Salaam from Nairobi would only cost Ksh13,200 inclusive of taxes and charges compared to Ksh 22,093 charged by Precision air.

This was possible through an ingenious budget model where passengers who make advance booking pay less.

Passengers who want additional services such as food, baggage and seat choices pay extra making it cheaper for to fly for those seeking minimal additions.

Low demand and fierce competition on its Kenyan route forced the London Stock Exchange-listed airline to suspend its operations.

“After careful consideration of all possible options, Fastjet has regrettably made the difficult decision that a small number of route suspensions still needed to be effected,” Fastjet said in a statement reported in Business Daily.

The prevailing economic environment in the markets they operate also influenced the decison

“The specific routes to be suspended were chosen due to low passenger demand as well as inefficient utilization of Fastjet existing and planned aircraft fleet. They were not commercially viable in the present economic environment of both Tanzania and Zimbabwe”

The carrier’s route will now focus on Tanzania domestic route between Dar es Salaam and Mwanza, Kilimanjaro, Mbeya and Zanzibar.

International routes will be between Tanzania and Johannesburg. Lusaka and Harare as well as two routes from its Zimbabwe base in Harare to Victoria falls and Johannesburg.

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