* TRADING STATEMENT
* FASTJET ZIMBABWE IS CURRENTLY PLANNING TO RESTART FLIGHT OPERATIONS ON TUESDAY 21 APRIL 2020
* ALL FASTJET GROUP EMPLOYEES HAVE ACCEPTED A VOLUNTARY SALARY REDUCTION EFFECTIVE FROM 1 APRIL 2020 OF UP TO 30%
* SALARY REDUCTION DEPENDING ON THEIR CURRENT SALARY SCALES, WITH LOWEST EARNERS AFFECTED LEAS
* EXPECTS REDUCED GLOBAL OIL PRICES TO HELP TO CUSHION FINANCIAL IMPACT OF FORECAST LOWER PASSENGER DEMAND WHEN OPERATIONS RESTART
* TIMELINES DISPOSAL OF CO’S HOLDING IN FASTJET ZIMBABWE ARE NO LONGER PRACTICALLY ACHIEVABLE
* FASTJET ZIMBABWE HAS FULLY PAID OFF ALL OF ITS EMBRAER EMB145 AIRCRAFT
* INVESTOR CONSORTIUM CONFIRMED THAT IT REMAINS COMMITTED TO DIVESTMENT PROPOSAL
* INVESTOR CONSORTIUM INDICATED THAT IT WOULD POTENTIALLY FORESEE MODIFIED TERMS OF SALE NEEDING TO BE DISCUSSED, NEGOTIATED
* FASTJET ZIMBABWE’S UNFLOWN FORWARD TICKET SALES OBLIGATION WAS US$ 616,476 AS OF 31 MARCH, MUCH LOWER THAN TRADITIONALLY EXPERIENCED
* FEDAIR HAS ENTERED A RESTRUCTURING PROCESS
* RESTRUCTURING PROCESS OF FEDAIR WILL RESULT IN 55% OF ITS FULL-TIME EMPLOYEES BEING RETRENCHED
* IN 55% OF ITS FULL-TIME EMPLOYEES WILL BE RETRENCHED IN FEDAIR
* SIGNIFICANT PORTION OF 14 AIRCRAFT FLEET HAS BEEN TERMINATED BY FEDAIR
* FEDAIR SEEN DRAMATIC DOWNTURN IN FORWARD TICKET SALES & RESERVATIONS & MAJORITY OF PASSENGERS THAT WERE BOOKED HAVE DEFERRED THEIR TRAVEL
* FEDAIR HAS RETAINED LIMITED CREW TO OPERATE THESE SIX AIRCRAFT, WHICH WILL BE CORE FLEET RETAINED FOR REMAINDER OF 2020
* FEDAIR IN TALKS WITH AIRCRAFT FINANCIERS RELATING TO OWNED AIRCRAFT TO SUSPEND & DEFER CAPITAL REPAYMENTS ON AIRCRAFT LOANS UNTIL DEC 2020
* FEDAIR WOULD NEED ADDITIONAL CASHFLOW OF APPROXIMATELY US$ 1.0M BY 31 DECEMBER 2020
* BOARD IS REASSESSING GOING CONCERN ABILITY OF ENTIRE GROUP IN ITS CURRENT FORM, WITH BOTH FEDAIR AND FASTJET ZIMBABWE BUSINESSES RETAINED
* GROUP WILL CONTINUE TO HAVE SUFFICIENT RESOURCES TO MEET ITS OPERATIONAL NEEDS UNTIL END OF JUNE 2020
* IF UNABLE TO COMPLETE DISPOSAL/RAISE FURTHER NEW CAPITAL BY 30 JUNE DIRECTORS BELIEVE GROUP TO BE UNABLE TO CONTINUE TRADING AS GOING CONCERN
* FEDAIR WOULD NEED ADDITIONAL CASHFLOW OF APPROXIMATELY US$ 1.0M BY 31 DECEMBER 2020 Source text for Eikon: Further company coverage:
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