Fastjet South Africa, through social media and marketing campaigns, has promised “tickets will be on sale very, very soon!” but authorities still want answers from the company before it can launch flights in South Africa.
Late last month, Tourism Update reported that, for fastjet to sell tickets under its own brand, it was required to apply to the Air Services Licensing Council for the name to be changed on Federal Air’s AOC.
However, fastjet and its local partner, Federal Air, disagree. A fastjet spokesperson confirmed that the AOC would remain in Federal Air’s name, that flights would operate with a fastjet-branded Boeing 737 leased from Star Air Cargo, and that flights would go on sale via fastjet distribution channels.
This is not allowed, says Department of Transport deputy director of licensing and permits, Andries Ntjane. “Fastjet is not a licensee and therefore cannot sell tickets with its brand. A name change, address, shareholding and any change of operations of a licensee have to be considered by Council.” He stresses that the licence and AOC kept under Federal Air cannot be used by any third party prior to the decision of the Council.
Brad Dickson, Federal Air commercial manager, says, as the airline is fully licensed to operate domestic and international flights using the category of aircraft fastjet plans to use, no regulatory approval is necessary. He would not reveal the details of the commercial agreement between Federal Air and fastjet but reiterated that there was a franchise agreement between the two companies and that the plan was to operate as Federal Air using the fastjet brand.
Aviation expert, Linden Birns, says his understanding is that Federal Air will trade as fastjet in much the same way that Comair trades both as British Airways and kulula.com. “If I have understood correctly, then I cannot see how the Licensing Council could insist on changing the AOC,” he adds.
Comair, which has lodged a formal objection with the Council, objects to its model being compared with that of fastjet. Comair, says CEO, Erik Venter, is actively and effectively controlled by Comair and holds its own licences and AOC. “Who actively and effectively controls fastjet? Federal Air? Fastjet has to operate on its own licence and operating certificate like any other airline, otherwise who is ultimately responsible for the safety and customer liability of fastjet passengers? There is absolutely no basis for comparing fastjet with Comair,” he says.
Dickson confirms that, ultimately Federal Air will take responsibility for the passengers and says it can’t pass the responsibility to anyone. He adds that other airlines are spreading disinformation about the fastjet operations because it is in their best interest to do so. “Our competitors don’t want to see the introduction of any new competition,” says Dickson.
Venter says fastjet appears to be creating a commercially illogical structure to try and avoid having to apply for a licence in SA. He adds that fastjet’s involvement in airlines in the rest of Africa, where it has over 90% financial benefit despite a local shareholder owning the majority shareholding is a “clear indicator that fastjet is inclined towards window dressing in order to bypass local legislative requirements while retaining active and effective control and benefit”.
Since the commercial agreement between Federal Air and fastjet happened outside the ambit of the Council, Ntjane says the deal needs to be regularised. As such, the Council has requested that fastjet and all affected parties meet with the Council on June 12 to explain themselves. He adds that only a licensee is allowed to advertise to the public, otherwise it creates a perception in the mind of the SA public that there is actually an airline called fastjet operating.
Dickson says he is confident that, when the airline addresses the Council at the meeting, it will be happy with what fastjet is proposing and that it will put an end to all speculation around what the companies are doing.