Tanzanian Low Cost Airline Fastjet Takes Delivery Of Its First Owned Aircraft Airbus A319

Fastjet Plc (AIM:FJET) has recently announced that its first owned aircraft, an Airbus A319, has been delivered extending its fleet size to a total of six aircrafts.

The Airbus A319 delivery took place at Montpellier-Mediterranee Airport (MPL) in France’s southern region on October 12^th, 2015 and closed the acquisition process which was announced in August and signed in September, 2015.

The aircraft came from Dubai and was delivered to fastjet after registration procedures were completed by Azur Aviation, a French operator involved in aircraft delivery services.

The investment amount has not been disclosed yet, but fastjet has announced that the new aircraft was bought from BBAM US LP (BBAM), a US based commercial aircraft leasing, at a discount price of its market value which is around the USD 15.5 million and was paid by cash.

Details about the Airbus A319 acquired have not been disclosed either, but it is known to have a capacity to carry 156 passengers since this is the most common version ordered by low cost airlines instead of the standard version of 124 seat configuration according to Airbus.

The aircraft’s acquisition came at a moment when fastjet is seen a rapid growth on its passengers traffic, reason why the new Airbus A319 terminated a series of acquisitions in 2015 that doubled the size of fastjet’s fleet in few months, stated fastjet CEO Ed Winter.

With the new Airbus A319 the low-cost airline is seeking a mixed fleet to reduce taxes and raise net income as the aircraft’s ownership allows to use it as a fiscal shield to reduce taxes up to six years since the acquisition.

According to fastjet’s latest statistics, the company recorded an increase of 33% of passengers carried in September 2015 totaling 76,595, up from 57,709 in September 2014.