Fastjet PLC (LON:FJET) has sold its solely owned Airbus A319 for US$8mln to help shore up its finances while it undertakes a root and branch restructuring.
The buyer, Avtrade Limited, will pay US$8mln cash with a 10% deposit payable on signature of the agreement and the balance on delivery.
New chief executive Nico Bezuidenhout’s recovery plan is to reduce the size of the fleet and switch to smaller aircraft from A319s.
This will reduce fuel, maintenance, handling and navigation charges by 15%.
The replacement fleet will initially be arranged through short term wet leases (aircraft, crew, maintenance and insurance) to be superseded by dry leases (aircraft only) in the second half of next year.
Bezuidenhout said the disposal was an important step in the airline’s stabilisation plan and its move towards a more appropriate size of fleet.
“It's early days but the plan is progressing well and the money raised from this sale will be used to drive its continued implementation."