"Talks are at an early stage but this represents a great opportunity for both parties," Fastjet Chief Executive Ed Winter said in a statement.

Fastjet (FJET.L), which began commercial flights last month, was set up after British investment firm Rubicon acquired the aviation unit of industrial group Lonrho Plc (LONR.L) for $86 million in June.

The low-cost carrier had said on Tuesday that it was in talks with liquidators to buy struggling South African budget airline 1time.

Africa's fledging aviation market is poised for growth as consumer demand in the resource-rich continent rises.

Middle East carrier Emirates uses its Dubai hub to connect travellers in Africa to the rest of the world.

Fastjet shares were trading up 2.74 percent at 3.8 pence at 0915 GMT. (Reporting By Shilpa Hinduja and Karen Rebelo in Bangalore; Editing by Roshni Menon)

• A Permanent Economic Emergency