Bleak conclusions from auditor KPMG are being contested by the aspiring pan-Africa low-cost carrier.
On Friday, auditor KPMG said there was "significant doubt" the company could continue to trade after the airline lost $56m (£37m) over the 18 months to December 31, 2012. But a spokesperson for the airline told Routes News that the results fail to reflect the carrier’s true prospects. In its most recent expansion, fastjet has opened an operation in South Africa, which is set to fly Johannesburg–Cape Town from early July. This week, it was also reported that the carrier’s subsidiary Fly540 Ghana has secured rights to fly to Nigeria. In defence of the airline, the spokesperson told Routes News that fastjet had only started flying a month before the close of the audit period at year-end. "Therefore the results are extremely historic and not relevant to the performance of fastjet," said the spokesperson. "The losses are attributed to Fly540, where the fastjet board has had to make significant impairments to goodwill and assets acquired. The board is taking action to improve Fly540 performance whilst services continue under that brand." Fastjet carried almost 800,000 passengers in the year to March 2012, a 50% rise on 2012, with 99.2% of flights on-time, said the spokesperson. Fastjet has also secured £15.7m ($24.1) to fund expansion and is now Africa’s second most 'liked' airline on Facebook, the spokesperson added.Source: routenews, Piers Evans
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