EasyJet Founder Stelios Haji-Ioannou to Launch African Budget Carrier

A new budget airline backed by easyJet founder Stelios Haji-Ioannou will soon take to the African skies, promising to bring low-cost flights to millions of people in the continent.

Dubbed Fastjet, the no-frills carrier is expected to launch in three to four months, aiming to cash in on Africa's robust economic growth and a growing appetite for travel by its burgeoning middle class.

The move comes after Haji-Ioannou's easyGroup teamed up earlier this month with pan-African conglomerate Lonrho to create the low-cost carrier. Lonhro, owner of budget airline Fly540, has agreed to sell its aviation business to investment firm Rubicon Diversified Investments, in which easyGroup will hold a 5 percent stake.

The new business will start operations using Lonrho existing network in Ghana, Kenya, Tanzania and Angola, before expanding to more markets in the future.

The low-cost carrier expects to offer average fares of $70-80 before tax, which could fall to as much as $15-20 when booked early.

Fastjet executives say they hope to tap Africa's rather underdeveloped aviation network, offering an affordable alternative in a transport environment largely dominated by difficult terrains, long bus journeys and poor infrastructure.

In 2011, low-cost carriers occupied 9 percent of the African market, suggesting that there is a large potential for further development and growth, says aviation expert Linden Birns.

Aircraft manufacturer Airbus has forecast Africa traffic to expand by about 6.5 percent per year between 2011-2020 and by 4.9 percent between 2021-2030, for a 20-year growth rate of 5.7 percent. This compares with a 4.8 percent increase in demand on a worldwide basis over the next 20 years.