Lonrho has sold its aviation business to British investment firm Rubicon enabling it to create low cost African airline FastJet with easyJet founder Stelios Haji-Ioannou’s easyGroup.
Lonrho said it had sold the unit to Rubicon for $85.7 million. As part of the deal Stelios’ easyGroup will own 5 percent of Rubicon, reports Reuters.
"Following completion Rubicon will pursue a strategy of developing a low cost African airline utilising the Lonrho Aviation route network and existing platforms," Lonrho said in a statement.
"Under a licensing agreement with easyGroup, the airline will be branded FastJet and will use modern jet aircraft and operate to European standards."
By Diane Evans
