The airline, which was established by easyJet founder Stelios Haji-Ioannou in 2012, said this would result in a saving for the company over the next five years.
“This agreement represents a major step forward as the company continues with its stabilisation efforts under new management,” said the company in a statement.
Haji-Ioannou said: "Fastjet is a great brand in all its African markets, making it a highly valuable asset for the company.
“I have accepted the view of the current board that the company should own its own brand rather than licence it from me.
“I feel we have agreed a fair price for its transfer - $2.5 million - which is less than what the company would have had to pay over the next five years.
“I still hold shares worth about £1.3 million in the company and as such I will be a supportive shareholder, hoping to realise significant upside potential as fastjet grows and prospers.
“From the decisive actions thus far taken by the new management and board, and early indicative outcomes, I am encouraged that fastjet’s direction of travel is now on the right course.”
Nico Bezuidenhout was appointed chief executive of fastjet late last year following a campaign from Haji-Ioannou to oust the existing senior management.
He said: “Brand development is an integral part of building a successful consumer-facing business and represents a substantial investment for any airline - it logically follows that your brand, an asset to be leveraged for the benefit of shareholders, should be under your full control and ownership.
“We are happy to have reached agreement with Sir Stelios and appreciate the on-going confidence he has expressed in the fastjet business and leadership team.”
In an update on trading for the period from January 1 2017 to date, the company said it had made steady progress in implementing stabilisation efforts, including a re-fleeting process, relocation of its headquarters from London to Johannesburg and a “right-sizing” of its operations in Zimbabwe and Tanzania.
“These steps are having the desired effect and accordingly fastjet aims to achieve a cashflow break-even position for the final quarter of 2017,” the airline said.
The company, which is aiming to leverage its relationship with Solenta Aviation Holdings, a strategic investor who acquired a shareholding in fastjet in January 2017 and which has an operational footprint in a number of African countries, is in the process of evaluating expansion options to “further geographies” and “looks forward to making further announcements in due course”.
Fastjet was awarded the Skytrax award as Best Low Cost Carrier in Africa at the Paris Air Show last week.
