| Thu 10 Jan 2008, 11:24 | | LAF - Lonrho To Acquire Eight New Atr 72-500 Aircraft For Us$ 145 Million To |
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LAF
LOLAF
LAF - Lonrho To Acquire Eight New Atr 72-500 Aircraft For Us$ 145 Million To
Further Expand Its Pan African Airline, Fly540
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")
10th January 2008
LONRHO TO ACQUIRE EIGHT NEW ATR 72-500 AIRCRAFT FOR US$ 145 MILLION TO FURTHER
EXPAND ITS PAN AFRICAN AIRLINE, FLY540
Lonrho (AIM: LONR), the expanding conglomerate with a structured portfolio of
African investments, is pleased to announce that it`s wholly owned subsidiary,
Lonrho Air (BVI) has signed an agreement with Avions de Transport Regional, GIE
( ATR ) to purchase eight of the latest specification, new, ATR 72-500 aircraft.
The delivered price for the eight aircraft, including a comprehensive support
and spares package, will be in the region of US$ 145 million and delivery will
be completed on an agreed schedule delivering four during 2008 and four during
2009. The aircraft will be branded Fly540, and will be configured with 54 seats
in economy and 12 in first class.
ATR will assist Lonrho Air (BVI) in obtaining Export Credit cover for the
financing of the Aircraft from COFACE and SACE, the respective Export Credit
Agencies ("ECA") of France and Italy. ECA financing terms are as approved by the
Participants to the Revised Sector Understanding on Export Credits for Civil
Aircraft which came into force in July 2007. ECA support may extend up to 85% of
the purchase proceeds of the Aircraft. The balance of 15% will be payable by
Lonrho Air (BVI) in periodic instalments, prior to each Aircraft delivery
Lonrho`s wholly owned subsidiary, Fly540 Africa, is developing an expanding
aviation network across Africa, providing much needed international standard
services. Fly540 will be flying in eight African countries early in 2008 and the
new aircraft will provide the ability for the airline to continue its expansion
plans to link African countries with a quality airline.
The ATR 72-500 is the latest development of the reputable and long established
ATR 72. It draws from the in-service experience of more than 700 ATR aircraft
flying worldwide, with a proven average dispatch reliability of more than 99%.
The ATR 72-500 is accepted as the most profitable way to transport passengers on
short-haul sectors and the aircraft provides the lowest seat-mile costs in this
market.
The ATR 72-500 features exceptional operational economics when compared to
similar sized turboprop and jet competitors. On typical regional sectors of 200
Nautical miles, ATR 72 operating costs are up to 40% more economic than a
similar sized regional jet.
David Lenigas, Lonrho`s Chairman stated:
"We are delighted that we have been able to agree the purchase of eight new
aircraft from ATR to expand our existing ATR fleet. The ATR 72-500 provides
lower engine and airframe maintenance costs and less fuel costs than any other
aircraft in this market, whilst providing state of the art avionics and new
aircraft reliability and safety. When operated on appropriate routes, it
provides an excellent competitive advantage to our business.
Fly540 is developing the first true pan African airline, flying both East to
West and North to South and I am delighted that ATR, as a leading world
manufacturer, has become a strategic part of this exciting growth story."
ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
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 : NOMAD to Lonrho
Jonny Sloan/Hugh Field +44 (0) 20 7523 8350
NOTES TO EDITORS
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
- Lonrho Mining - www.lonrhomining.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 - www.saliners.com
- Bytes and Pieces
- Celsys Limited - www.celsys.co.zw
10 January 2008
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 10/01/2008 11:24:44 Produced by the JSE SENS Department.
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