Red for go as Fastjet switches LCC strategy from South Africa to Nigeria

FastJet plans to launch a new operating base in Nigeria after signing of a memorandum of understanding with domestic start-up Red1 Airways.

The Stelios Haji-Ioannou-backed airline, which launched in Tanzania in November 2012, has aspirations of becoming the first pan-African low-cost carrier.

But its expansion plans have hit repeated hurdles, with foreign ownership laws delaying its entry to South Africa and a contractual dispute hindering progress in Kenya.

The new west African venture will be branded FastJet Nigeria, with capital raising being the responsibility of minority stakeholder Red1 Airways.

Red1 was founded in 2003 and its original business model envisaged launching services in 2009 with six ATR 72-500s.

The airline is in the process of obtaining an air operator's certificate, which it says will enable the launch of both domestic and international flights.

FastJet's South African launch has also been pushed back while the parent company prioritises international services from Tanzania.