Fastjet Group is predicting full-year net losses of $7-8 million, which it attributes to volatility affecting its Zimbabwean operation, a division it is looking to divest. Although operational performance has improved, and revenues for the first 10 months of this year increased by 20% – to just over $34 million – the company remains loss-making. Fastjet Group says its FedAir operation is "resilient" and is set to generate a profit this year. But the introduction of a new Zimbabwean currency earlier this year, and devaluation of the previous one, has contributed to difficult trading for its airline operation in the state. Fastjet Group has faced problems across multiple airline operations as the company attempted to establish itself as a pan-African budget airline. It sold its Tanzanian airline operation in November last year, as strong competition from Air Tanzania exacerbated poor financial results – this former operation was recently placed into liquidation after a creditor application to a local court. Fastjet Group then suspended its airline division in Mozambique over increasing losses, and planned to concentrate on its Zimbabwean arm and the establishment of South African services. But the problems in Zimbabwe have put further financial pressure on the company, and it is looking at selling the division to investors in order to raise capital. Fastjet Group says it had cash reserves of $3 million on 21 November, of which $800,000 was in Zimbabwe. Selling the Zimbabwean operation would "de-risk the significant uncertainty and cash drain" and allow Fastjet Group to continue operating under a "simpler" business model, says chief executive Mark Hurst. If the divestment proposal is accepted Fastjet Group would emerge as a franchise operation offering the brand and management services to the Zimbabwean division and other African carriers.

Source: FlightGlobal

Airbus is investigating the cause of noxious fumes in the cabin of a brand new Airbus A330-900 after New Caledonian carrier Aircalin returned the aircraft to Toulouse, following complaints of headaches and eye irritation by cabin crew and passengers. The Nouméa-based carrier only received its two Rolls Royce Trent 7000-powered A330-900s in July and October, with the aircraft replacing two A330-200s to operate routes from the French Pacific island territory to Australia, Japan, and other Pacific islands. The aircraft involved, registered F-ONET, was withdrawn from service after a flight from Sydney following complaints of a strong smell of oil in the cabin which caused headaches and eye irritation. Inspections of the aircraft in Nouméa failed to identify or resolve the problem, resulting in the aircraft being returned to Toulouse for further investigation on 18 November, confirms the airline. The other A330-900 remains in service. “The aircraft has been flown to Toulouse for thorough inspections and to identify the cause of the problem,” says Airbus. “We don’t have any further comment at this time, pending the outcome of the tests,” it adds. In the meantime, Aircalin says operations are not affected as it has returned one of its two A330-200s to service, which bears the registration F-OJSE. TAP Air Portugal was reported earlier this year to have encountered similar issues with some of its new A330-900s.

Source: FlightGlobal

Turkish carrier AtlasGlobal will halt operations until mid-December owing to financial troubles. The airline says it will "temporarily" cease flights from 26 November to 21 December as it deals with cash flow problems amid tough economic conditions. "We have entered a new phase of restructuring in order to provide you a unique flight experience," the carrier states. During the Routes Europe conference in October, commercial chief Nevzat Arsan said that the carrier had a "very difficult time" in 2018 amid depreciation of the Turkish lira and general economic instability in the country. He added that political and social instability in Iran, Iraq and Syria were impacting the airline “significantly”.

Source: FlightGlobal