Fastjet Mozambique plans to relaunch its operations this year, according to Chaviation in its Friday edition (02.05). The low-cost airline suspended operations in 2019 after starting in 2017.
Fastjet could resume operations at a time of extreme demand, as Linhas Aéreas de Moçambique (LAM) is unable to meet demand and is plagued by constant scandals and financial losses.
At the time, the group said it had taken the decision after incurring losses of US$2.4 million during the first half of 2019, together with the ‘continuing oversupply of seats available from other airlines’.
Fastjet Mozambique’s revenues also fell to US$1.9 million in the first six months of the year, compared to US$4.2 million in the first half of 2018. The suspension comes almost two years after the airline began operations in the country.
‘The damaging financial impact of ongoing supply and demand challenges means that suspending our operations in Mozambique is the right action at this time,’ said Mark Hurst, interim chief executive of Fastjet.
‘However, we remain committed to Mozambique, will monitor the market environment closely and hope to return there when the situation improves.”
In a statement, the group added that competition in the country began to intensify in late 2018 with the entry of Ethiopian Airlines as a domestic carrier.
This increase in supply, coupled with two category 5 tropical cyclones in early 2019 that ‘suppressed’ passenger demand, led Fastjet to reduce frequencies on routes and reduce overall capacity in Mozambique.
The reduction in capacity led to lower revenue and increased losses during the first half of 2019.
According to the OAG Schedules Analyser, Fastjet Mozambique operated six domestic routes using Embraer 190 and RJ145 aircraft at the time. In October 2019, the company had 6,082 seats available, with the largest capacity distributed on its service from the capital Maputo to Beira, a city in the central region of the country.
OAG data showed that, at the time, the airline had a 15.4% share of available seat capacity in Mozambique, positioning itself as the third largest airline in terms of capacity. LAM Mozambique Airlines had the largest share, with 46.6%, while Ethiopian Airlines ranked second, with 16.5%.
Fastjet said at the time that the suspension of flights in Mozambique did not affect its services in Zimbabwe, which continued to operate between Harare, Johannesburg, Bulawayo and Victoria Falls. The company expects to incur costs of around US$150,000 following the decision on Mozambique.
Integrity Magazine
