| Wed 4 Jun 2008, 16:52 | | LAF - Lonrho Plc - FLY540 divisional update |
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LAF
LOLAF
LAF - Lonrho Plc - FLY540 divisional update
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")
FLY540 DIVISIONAL UPDATE
4 June 2008
Lonrho (AIM: LONR) , the conglomerate with a structured portfolio of African
investments, is pleased to announce that substantial progress has been made in
the scheduled development of the Company`s modern pan-African airline, Fly540.
Fly540 currently provides safe international passenger and freight services, in
East Africa, with plans to expand across the continent.
Fly540 continues to focus on providing aviation services to the domestic and
regional markets within Africa, to the highest international standards,
utilising the latest technology and equipment. The Fly540 business model focuses
on the use of highly efficient aircraft, (ATR`s) and streamlined and cost
effective operations aimed at mininmising overheads to establish regional hubs,
ahead of developing a full scale Africa wide network, flying east to west and
north to south across the continent.
Fly540 Kenya
Since establishing Fly540 in Kenya in 2007, it has successfully developed to
become the second largest carrier in Kenya, after the national airline, Kenya
Airways, carrying up to 20,000 passengers a month. Hubbed out of Nairobi, and
serving all of the main domestic locations, the airline has built a strong
reputation for reliability, service and value.
Fly540 Kenya became cash positive in its first year, establishing itself as the
premier private passenger airline servicing the domestic market in Kenya. In
January 2008, as part of Fly540`s pan-African expansion plans the airline moved
to its international phase. Fly540 Kenya has now established new routes from
Nairobi to Uganda, Somalia, Southern Sudan, and Tanzania. By the end of 2008, it
plans to add new services to Zambia, Rwanda and the DRC.
Fly 540 Angola
The second hub being established in the pan-African roll out of Fly540 is in
Angola. In October 2007, Lonrho agreed to form a new joint venture in Angola to
develop a new domestic airline. The airline, Fly540 Angola, is being developed
on the ground, where the Fly540 Angola management team is currently in place,
and recruiting and training maintenance staff and cabin crew. The development of
ticket and administration offices, hangars and infrastructure necessary for the
airline to operate is at an advanced stage and is nearing completion. Two
aircraft will be deployed to Luanda in June 2008 and a further four new aircraft
deployed by September 2008.
Following the successful Fly540 Kenya model, Fly540 Angola will, as routes
build, fly to fifteen domestic locations throughout Angola. Once established as
a leading domestic operator, appropriate regional routes to neighbouring
countries will follow.
Fly 540 pan-African Expansion Plans
In the second half of 2008, Fly540 will open its third strategic hub, to service
West Africa. This will be based in Ghana and service domestic and regional
routes.
In the interim, during the remainder of 2008 and 2009 the airline will develop a
series of key subsidiary hubs, which will facilitate both domestic and inter
country traffic on a localised basis. Countries at feasibility stage as
subsidiary hubs include Zimbabwe; Djibouti; Guinea; South Africa, Mozambique,
Algeria and Equatorial Guinea. Each of the localized domestic hubs will be
connected with a senior regional hub.
Following the establishment and successful operation of the three senior hubs,
Kenya, Angola and Ghana, a regional jet service (Boeing 737-500`s) will be
established to untie the three hubs and complete the delivery of the Fly540
airline concept.
David Lenigas, Executive Chairman of Lonrho commented:
"The market opportunity to develop a quality, efficient and international
standard pan-African airline is significant, Fly540`s success in East Africa to
date is testimony to this. We see similar opportunities for Fly540 throughout
Africa and are extremely positive about the future growth prospects for the
airline. Economic growth in the continent is being limited by of the lack of
core infrastructure in place. Fly540 delivers a low cost, reliable solution to
travelling around the continent providing huge benefits to local communities and
providing a critical means of connecting key African commercial hubs. We believe
that Fly540 will continue to develop and support economic growth in Africa,
becoming a market leader in the African aviation sector in the medium term."
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de Borchgrave, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743
6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743
6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to
Lonrho
Hugh Field / Simon Alston +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`s shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 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)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
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