fastjet has entered into a binding agreement with Avtrade for the sale of its sole owned Airbus A319.

The consideration is being satisfied in cash for US$8.0 million with a 10 per cent deposit payable on signature of the agreement and the balance on delivery.

The agreement is subject to industry standard conditions precedent. 

Included in the agreement is an option to continue to operate the aircraft from October 3rd to October 17th with a reduction in proceeds of $200,000 for a usage of up to 100 cycles.

The use of proceeds will be utilised as working capital for the implementation of fastjet’s stabilisation plan as outlined in the company’s interim results announcement.

As previously announced, fastjet is reducing the size of its fleet and is transitioning its fleet from the existing A319 aircraft to smaller aircraft, a move which is expected to yield an approximately 15 per cent cost reduction for fuel, maintenance, handling and navigation charges.

Nico Bezuidenhout, chief executive officer at fastjet, commented: “The sale of our Airbus A319 is an important step in our stabilisation plan and our move towards a more appropriate size of fleet. 

“Its early days but the Plan is progressing well and the money raised from this sale will be used to drive its continued implementation.”