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Jacob Zuma ‘to buy presidential jet despite South Africa’s poverty’‏

Jacob Zuma is in talks to buy a £165m presidential jet, it was reported, just   days after the South African president warned of growing frustration among   the country’s poorest over the government’s failure to improve their

South Africa's President Jacob Zuma: Jacob Zuma 'to buy presidential jet despite South Africa's poverty'

South Africa’s President Jacob Zuma

The customised Boeing 777 plane seats 300 people and would cost $150m to buy   and an additional $80m to be adapted to Mr Zuma’s specifications.

The Department of Defence, which oversees VIP transport, is reportedly   considering spending an additional $28m on a second private plane for   Kgalema Motlanthe, the deputy president.
Defence Secretary Sam Makhudu Guluybe was on Friday visiting the United States   to finalise the sale with Boeing, according to the Johannesburg Star   newspaper.
The newspaper said it had documents which showed the defence department had   negotiated a significant reduction on the jet’s original price of $305m   after a deal between Boeing and another buyer fell through.
The current presidential jet, known as Inkwazi which means “fish eagle”   in Mr Zuma’s mother tongue Zulu, was out of service for much of last year   for upgrades and maintenance.
The government is also facing a multi-million dollar legal bill after   cancelling a five-year lease for another plane from Nigeria. Defence officials have refused to comment on the reported deal, or explain why   new planes might be needed for the president and his deputy.
 Opposition politicians have lambasted the apparent move, revealed at a time   when the ANC is holding a five-year policy conference to discuss how to   alleviate poverty in South Africa, which sees about 40 per cent of the   population live on less than $49 (£31) a month.
David Maynier, the defence and military veterans spokesman for the opposition   Democratic Alliance party, questioned why Mr Zuma could not use the state   airline, into which the Treasury has also pumped billions of rands. “If British Prime Minister David Cameron can use British Airways to fly,   then Zuma can fly South African Airways,” he said.
“It is simply wrong to spend R2 billion on a presidential jet when so   many people in the country are poor. I believe a presidential jet should   only be used in exceptional circumstances.”

 

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Posted by on July 2, 2012 in Business News

 

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Easy Jet To Launch a low-Cost Airline in Africa – Tanzania included

                                                    Photo by: www.airliners.net

Sir Stelios Haji-Ioannou, the founder of EasyJet, is set to launch a low-cost airline in Africa this year after taking a 5% stake in a new venture.

The easyGroup tycoon, who is embroiled in a long-running boardroom battle with easyJet, is backing a carrier that will operate under his Fastjet airline and be run by former easyJet executives.

Fastjet will operate from Kenya, Tanzania, Ghana and Angola. The ambition is to carry more than 12 million passengers a year, from the 500,000 at present, by cashing in on demand for regional travel from a burgeoning African middle-class.
EasyJet remained tight-lipped about the move, referring queries to a statement made last year that said the Luton-based airline would take “necessary action” if Fastjet infringed its rights.

However, Ed Winter, Fastjet’s chief executive-in-waiting and formerly easyJet’s chief operating officer, said the airline would avoid antagonising its European peer. “We have been 100% careful. We are absolutely aware of the agreement, and so is Stelios, and we are not infringing it in any way,” he said.

Under the terms of Wednesday’s announcement, an Aim-listed cash shell company called Rubicon has bought the aviation arm of Lonrho, an ancestor of the pan-African conglomerate formerly run by Tiny Rowland, in a deal worth $85.7m (£55m).
As part of the deal, Easy Group will own 5% of Rubicon, and the airline will use Lonrho Aviation’s network. It will operate from the Lonrho hubs in the four African countries. Operating as Fly 540, Winter said a 12-million passenger target was feasible.

“If you take the four countries, they have a total population of 100 million people. If you estimate that all our customers come from just those countries alone, you could see three million of them becoming customers with us, flying a couple of times a year. That would generate something like 12.8 million passengers [annually].”

Winter said Fastjet would launch towards the end of the summer but not use its fleet of 10 turboprops and small jets. Instead it would seek to lease larger modern jets like the Boeing 737 or Airbus A319.

 

The Guardian newspaper, London

 

 
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Posted by on June 19, 2012 in International News

 

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