Fastjet’s Embraer cannot be used as collateral, says TCAA
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Johari made the remarks after 105 former employees of Fastjet Tanzania, expressed fears that the Sh5 billion they were claiming from the airline would not be paid, after the plane had its registration revoked and allowed to leave.
Dar es Salaam. The Director General of the Tanzania Civil Aviation Authority (TCAA), Hamza Johari, said the Embraer 190 (5H-FJH) aircraft that was being held in Tanzania cannot be used as collateral to pay the debts of former Fastjet Tanzania employees because it does not belong to the airliner.
Johari made the remarks after 105 former employees of Fastjet Tanzania, expressed fears that the Sh5 billion they were claiming from the airline would not be paid, after the plane had its registration revoked and allowed to leave.
Fastjet suspended its operations in Tanzania in 2018 with employees claiming unpaid dues, which resulted in the company's Embraer 190 (5H-FJH) aircraft reportedly barred from leaving the country by court order until the money is paid.
One of the former employees, Mummy Katolila, told Mwananchi that the plane’s registration had been revoked and that it was ready to leave the country at any time, without the workers being paid their dues.
She said in March 2022, the plane was allowed to change its registration and be allowed to leave the country because it was still operated by the parent company Fastjet PLC, which still operates in South Africa and Zimbabwe.
"That has made former employees lose hope of ever getting paid our dues. We are asking the President to ask TCCAA not to allow the plane to leave the country until employees are paid their dues," said Mummy.
Commenting on the matter, TCCAA Director Hamza Johari, said the plane was still in the country because it owes by the Tanzania Revenue Authority (TRA), but not for paying staff.
"This aircraft does not belong to Fastjet. It was leased by Fastjet, so the owner wants it back. So it is better for employees to continue to pursue their claims with the insolvency department, once the assets of the organization are sold then they will be paid, “he said.
Fastjet Tanzania was founded in 2011 as Fly540 Tanzania, a subsidiary of Kenya-based Fly540. Using a Bombardier CRJ100 and a Dash 8-100, it flew to eight destinations in Tanzania and two in Kenya.
In June 2012, Fly540 was acquired by Rubicon Diversified Investments, which intended to merge all of Fly540's operations into its new venture Fastjet. Fly540 Tanzania suspended operations on 13 October 2012 before being rebranded as Fastjet Tanzania.
Fastjet Tanzania started operations as Fastjet's first operating base in Africa, with flights from Julius Nyerere International Airport commencing on 29 November 2012.
Initial flights operated successfully between Dar es Salaam and Kilimanjaro, and between Dar es Salaam and Mwanza. Further routes were to be added quickly, both domestically and to other East African destinations.
By August 2015 it had come to operate domestic routes linking Dar es Salaam with Mwanza, Kilimanjaro and Mbeya, and four international routes from Dar es Salaam to Johannesburg, Harare, Entebbe, Lilongwe and Lusaka.
Ultimately unable to generate sufficient cash flow to cover its debts, the airline was declared insolvent and a liquidator appointed on 21 December 2019.
