Fastjet shares crash as it hits back at EasyGroup

Tanzania-based budget airline Fastjet on Friday criticised easyGroup for going public with a letter relating to the two companies’ contractual relationships and said it was seeking legal advice.

Fastjet said that while it welcomes constructive engagement with all shareholders, it cannot understand why easyGroup, acting as either a 12.6% shareholder or brand owner, published the letter without first raising its concerns with the company.

“The board considers the publication of this letter as wholly inappropriate and is taking legal advice on the matter.

“The company holds easyGroup responsible for any damage caused to the business by the publication of this letter.”

On Thursday, easyGroup sent a letter to Fastjet’s board requesting the company resume publishing monthly passenger statistics and updated cash flow forecasts for the current financial year amid claims planes were only 10% full.

It is understood that easyGroup owner Stelios Haji-Ioannou is concerned the airline might soon become insolvent.

At 0847 GMT, Fastjet shares were down 21.4% to 28.50p.