For the second time in just over ten weeks, easyGroup Holdings has called a general meeting to discuss the proposed removal of another of fastjet plc's executive directors.
Having successfully removed former CEO, Ed Winter, and general counsel, Krista Bates, back in mid-March, the Stelios Haji-Ioannou-led firm is now looking to dismiss executive chairman, Colin Child.
easyGroup, which owns a 12.6% stake in fastjet, claims that since his appointment in September last year, Child has failed to appoint a new CEO and to relocate the airline's head office from Gatwick to Tanzania. In addition, easyGroup claims fastjet's inability to produce audited accounts for the year ending December 2015 by March 31 was simply a ploy by Child to prevent shareholders from learning about the company's dire financial straits which easyGroup described as 'critical'.
"We suspect the reason is that Child wants to postpone the bad news because the auditors are not giving the company a 'going concern' status. Also Child has not done any of the cost-cutting that could have given the Company the 12 month 'going concern' test," Hajji-Ioannou said in an open letter.
In the event fastjet's shareholders do vote to remove Child, easyGroup has suggested the company should promote internally someone who is based in Dar es Salaam to be acting CEO and appoint Rob Burnham, who is already a director, as Interim Chairman.
In response, fastjet has said it would announce the proposed meeting date at some point in the near future.
Prior to this letter, easyGroup had given fastjet's board until March 31 to address several alleged breaches of contract concerning their use of the fastjet brand or risk the termination of their commercial relationship.
fastjet plc operates in two African countries, Tanzania (Fastjet (Dar es Salaam)) and Zimbabwe (Fastjet Zimbabwe (FN, Harare International)), with plans to initiate Fastjet Zambia (Lusaka) having now been deferred to the last quarter of the year. For its part, Fastjet Kenya (Nairobi Jomo Kenyatta) has secured its Air Services License (ASL) and is currently pursuing its AOC.
