Fastjet Group is set to add a trio of ATR72-600s following a disclosure that it intends to fund their induction through a USD12 million loan from equity partner, Solenta Aviation Group.

The aircraft, known to be msn 1047 and 1060 (leased from Azul Linhas Aéreas Brasileiras) and msn 1072 (leased from ATR Leasing), are part of a Letter of Intent (LOI), signed with ABRIC Leasing, in September last year, wherein the Tanzania-based low-fare airline would secure the turboprops on a 10-year operating lease, with the option of acquiring them. Under the LOI, Fastjet is due to pay ABRIC's parent firm, ACIA Aero Capital Group of Companies (ACIA), an option deposit of approximately USD11 million to acquire the economic rights to the aircraft.

The ATR - Avions de Transport Régional turboprops will allow Fastjet to access runways and markets previously inaccessible due to its historic jet-only fleet, whilst also complimenting existing aircraft types in between the 50- and 100- seater gauge sizes. Among the markets where they may be deployed include South Africa (via Fastjet South Africa), Tanzania (via Fastjet), Mozambique (via Fastjet Mozambique), and possibly Zimbabwe (via Fastjet Zimbabwe).

"We are excited by the expected entry-into-service of turboprop aircraft during June 2018," Fastjet CEO Nico Bezuidenhout said. "This aircraft type serves a particular purpose in that certain short-haul routes with shorter runways now become accessible to Fastjet, whilst the fuel-efficient nature of the aircraft will stand us in good stead in an environment where fuel prices have shown an upward trend."

As such, Fastjet said in a London Stock Exchange filing that it had entered into a USD12 million loan facility agreement with Solenta to fund the option deposit as well as to provide general working capital.

Among the securities Fastjet has put down for the loan include the Fastjet trademarks, its shares in Fastjet Zimbabwe (FN, Harare International), the shares to be acquired by the group in Federal Air (7V, Durban Virginia) (if and when acquired), and the economic rights of the group to be acquired in the three ATRs.

The security includes a Solenta right to nominate directors to the boards of FedAir and Fastjet Zimbabwe together with an additional director to the board of Fastjet PLC.