Fly 540 and FastJet set to drop legal cases through negotiated agreement

(eTN) – Fly 540 and FastJet have dropped their mutual court action, which reflected widely different understandings and perceptions on the state of their agreements of cooperation and sale of shares.

(eTN) – Fly 540 and FastJet have dropped their mutual court action, which reflected widely different understandings and perceptions on the state of their agreements of cooperation and sale of shares. Sources close to FastJet spoke of a statement issued by them today โ€“ though not seen in person โ€“ that the apparent agreement to drop legal action was aimed to accomplish a โ€œmutually beneficial and constructive solution.โ€

After weeks of exchanging harsh words and leaving the FastJet team, which was supposed to have done due diligence prior to entering into agreements with Fly 540 in a precarious situation, when the deal blew up in their principalsโ€™ faces, apparently cooler heads prevailed, or the financial circumstances dictated as some other source from the UK suggested, that a negotiated settlement should be reached.

FastJet was desperate to enter the Kenyan market but owing to the claims laid at their door steps by the Fly 540 CEO Don Smith some weeks ago, failed to make headway, prompting them to even start discussions with other potential partners, namely Jetlink of Nairobi, Kenya. Those talks also showed no immediate signs of getting FastJet into the Kenyan skies.

Only two weeks ago news broke that FastJet had to suspend two routes in Tanzania not long after launching them with great fanfare, a further sign that their local expatriate management team has still to come to terms with seasonalities and the peculiarities of Tanzaniaโ€™s domestic aviation market. There is intense speculation among aviation observers if or when, one or more of them may have to pay the price for such misfortunes and be asked to leave, more so as one of their expatriates faces a case in a Dar es Salaam court over the alleged use of abusive language towards a local Tanzanian employee.

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

Share to...