Monday, 1 April 2013

Fast and furious

Full article in PDF format

Despite launching operations on-time and with load factors approaching 80%, African low-cost start-up FastJet has flown into myriad legal difficulties since taking to the skies in November 2012. The Stelios Haji-Ioannou-backed carrier not only disputes bills from one of its leasing companies and the Tanzanian government, but it is now embroiled in a complex ownership and branding battle with Five Forty Aviation, the parent company of its Fly540 affiliate.

The strength of the respective legal arguments by FastJet and Five Forty Aviation will be determined in court, but it is clear that the dispute stems from the founding contract signed between the two parties last year. Both sides effectively claim ownership of the Fly540 brand, while rejecting liability for Fly540's historic debts...