| Tue 9 Oct 2007, 14:56 | | LAF - Lonrho - Lonrho signs agreement to establish |
|
LAF
LOLAF
LAF - Lonrho - Lonrho signs agreement to establish it`s regional airline,
FLY50, in Angola
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF & ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO SIGNS AGREEMENT TO ESTABLISH IT`S REGIONAL AIRLINE, FLY540, IN ANGOLA
Lonrho (AIM: LONR), the expanding conglomerate with a portfolio of African
investments, is pleased to announce that it has signed an agreement that,
subject to the approval of a final business implementation plan to be
submitted shortly, will lead to the creation of a joint venture with GEFI,
(Sociedade de Gestao e Participacoes Financeiras SARL), one of the largest
internal investment companies in Angola, to set up a new airline in Angola.
The airline will be called `Fly 540 Angola`, and will replicate Lonrho`s
successful Fly 540 airline which is already established and operating in
Kenya. Lonrho will utilise the skill and experience available within the
existing Fly 540 operation to rapidly develop the new airline to become a
major market force in Angola.
GEFI, through its wholly owned aviation subsidiary, Planar, has provisionally
agreed to provide Planar`s assets to the joint venture including a 1,000m2
hangar; 400m2 of offices and a ticket office on a long term, peppercorn,
rental at 4th February International Airport, the main airport in Luanda.
Planar currently hold an Air Services Licence which will be used for Fly540
Angola.
It is planned to commence operations in the domestic market early in 2008.
Initial deployment will be a combination of modern turboprops and regional
jets, which will provide regular scheduled services to ten key locations
within Angola. The new airline will focus on quality, reliable passenger
services and it is scheduled to be operating ten aircraft by the end of 2008.
Freight and charter markets will also be developed concurrently with the
passenger market. The budget for establishing the company in year one has been
committed at US$ 9.0 million, of which Lonrho will provide US$ 3.0 million
with US$ 6 million funded locally.
Fly540 Angola will be defined as a `strategic company` under Angolan
legislation, as a result of which 51% of the company will be held by GEFI
and/or other Angolan partners. However, under the terms of the joint venture
agreement, Lonrho will receive 60% of the profits of the business.
Aviation services provide an essential means of transport in Angola, where the
population is very dispersed and the road and rail infrastructure cannot meet
demand.
David Lenigas, Chairman and CEO of Lonrho commented:
"The results of our market analysis show that the domestic market in Angolan
aviation is growing at 20% per year and we also plan to commence international
flights in due course.
"This is a significant further step in establishing Fly540 as an integrated,
pan African regional carrier of international standards. We expect Fly 540 to
be flying in seven countries by the end of the first quarter of 2008."
ENQUIRIES
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas, Chief Executive +44 (0)7881 825 378
Emma Priestley, Executive Director +44 (0)7867 785 177
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Alisdair Haythornthwaite +44 (0) 20 7743 6676
+44 (0) 7714 721379
Collins Stewart Europe
Hugh Field +44 (0) 20 7523 8350
Jonny Sloan
NOTES TO EDITORS
About GEFI:
GEFI is one of the largest internal investment companies in Angola, with
successful joint ventures in more than forty companies in the industrial,
services and financial sectors including CUCA (Angola`s largest brewery), Port
operations with Maersk and in the financial sector with Banco Sol.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services and
natural resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business
that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
- Hotel Cardoso - www.hotelcardoso.co.mz (retained)
- Nare Diamonds - www.narediamonds.com
- Luba Freeport - www.lubafreeport.com
- Fly540 - www.fly540.com
- Norse Air - www.norseair.co.za
- Swissta Holdings - www.swissta.com
- SA Independent Liner Services
- Bytes and Pieces
9th October 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 09/10/2007 14:56:10 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
