fastjet, Africa's low-cost airline, has signed a Memorandum of Understanding with local South African investment company Blockbuster. The airline plans to start operating services in South Africa by the end of May 2013, according to Bizcommunity. May 31 is target date for the launch of its Johannesburg to Cape Town route. Blockbuster is associated with a number of high-profile South Africans including Edward Zuma and Yusuf Kajee. It is anticipated that the new entity will be 75% owned by Blockbuster, in compliance with South African law, and 25% owned by fastjet. A commercial arrangement has been struck between Blockbuster and local operator Federal Airlines, a company with a 20-year history in South Africa, which will allow fastjet to leverage Federal Airline's existing licensing infrastructure and deliver its low-cost airline model to the South African public, according to Bizcommunity.
New low-cost airline gets ready for take-off
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