Fastjet (Dar es Salaam) has announced it will reduce its current 90% equity shareholding in Fly540 Tanzania (Dar es Salaam) and is in initial discussions with a number of Tanzanian investors. The move comes after the fledgling LCC announced USD34.9million in losses for its first year of operations. fastjet has further stated that its other subsidiaries, Fly540 Angola (Luanda 4 De Fevereiro), Fly540 Ghana (Accra) and Kenya's Fly540 (FFV, Nairobi Jomo Kenyatta) had not performed to its expectations and blamed losses incurred on a lack of international traffic rights, restrictive government bureaucracy and exchange controls as well as ongoing legal disputes over contracts. As a result, fastjet’s auditors have issued a warning about the airline's ability to continue trading, though the company remains positive about its future, hedging its bets on a nascent South African operation due to commence flights in June, and operated in conjunction with Federal Air (7V, Durban Virginia).