African low cost airline Fastjet has signed an agreement to buy 1time, the South African airline which went into liquidation last month, for 7p.
Sir Stelios’ budget African airline has entered an option agreement to buy the entire issued share capital of 1time airline from its parent company, 1time Holdings Limited, for 1 ZAR (South African Rand).
It would give fastjet the right to operate domestic and regional air services in South Africa.
Initially the airline will run domestic flights serving Johannesburg, Cape Town, Durban, Port Elizabeth and East London.
Fastjet will be taking over up to three of the twelve aircraft that were in the 1time fleet when the business went into provisional liquidation.
South African trade union Solidarity has previously accused Fastjet of pulling out of talks to buy the troubled airline which led to it applying for liquidation last month although fastjet would not comment on this, see previous story.
Ed Winter, chief executive officer of Fastjet, said: "I am pleased we have managed to reach a provisional agreement with all parties to buy 1time.
"Due to protracted negotiations we will not have 1time flying before the Christmas but very much hope that 1time will be flying again early in the New Year."
"The acquisition of 1time supports fastjet’s growth into a pan African low cost carrier and the synergies with Fastjet’ s existing operations will potentially increase the number of available route networks from South Africa into the rest of Africa."
If agreed, the proposal still faces UK and South African Regulatory approval as well as the agreement of shareholders.
1time will be rebranded as Fastjet brand and sold through fastjet.com.
