The spat between low-cost African airline Fastjet (LON:FAST) and Donald Smith, the chief executive of its Fly540 Kenyan business, is well on the way to being resolved.

Fastjet has entered into a memorandum of understanding (MOU) with Smith, chief executive officer of Five Forty Aviation, with a view to resolving the recent disputes between the two parties. Five Forty Aviation trades in Kenya as Fly540.

The disputes revolved around alleged non-payment by Fastjet for its acquisition of a controlling interest in Fly540, and a failure by Smith to hand over all the necessary documents to complete the transfer of control of Fly540 to Fastjet.

The two parties have agreed to stop legal proceedings against each other and to sit round the table to discuss ways they can work together to maximise the value and business prospects of both Fly 540 and Fastjet.

Commenting on the MOU, Fastjet chief executive officer (CEO) Ed Winter said the signing of the agreement provides a positive platform for Fastjet to strengthen its East African hub.

“Both Fastjet and Don Smith are pleased to be putting the unfortunate, highly publicised events of the past few months behind us. Don Smith remains the CEO of the Kenyan business and we are pleased to have him as part of the Fastjet/Fly540 team,” Winter said.