African budget airline Fastjet sold its loss-making subsidiary airline Fly540 Ghana yesterday.
It sold the business to airline DWG-G for $1 (£0.63).
Operations in Ghana were suspended in May 2014 and since then the Fastjet management has been exploring opportunities to restructure or dispose of this loss-making business.
In the year ended 31 December 2014, Fly540 Ghana recorded losses before tax of $11.3m. The company was bought by Fastjet from Lonrho Aviation in July 2012.
“The disposal of Fly540 Ghana is a great step forward in Fastjet’s restructuring plans for our legacy businesses,” said Fastjet chief executive Ed Winter.
“While west Africa remains of interest to us as a low-cost market in the future, our current focus is on expanding our footprint in eastern and southern Africa.”
The company said it plans to extend the Fastjet brand into west Africa when economic conditions are more favourable.