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LAF
LOLAF
Lonrho Africa Plc - Lonrho Acquires 49% Of Five Forty Aviation Limited In Kenya
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LONRHO ACQUIRES 49% OF FIVE FORTY AVIATION LIMITED IN KENYA
Lonrho is pleased to announce that it has acquired 49% of the issued share
capital of Five Forty Aviation Limited ("Fly540" or "the airline") for cash
consideration of US$1.5 million. Fly540 is a recently established low cost
airline based in Nairobi, Kenya. Lonrho has been granted board representation
with David Lenigas assuming the role of Chairman.
As well as providing freight services, Fly540 has been created to meet the
growing demand for alternative domestic and regional air travel within Africa.
Kenya is seen as an ideal base for the new airline as the country is a popular
tourist destination with a thriving domestic air travel market.
Fly540 plans to commence operations in Kenya within two months, with the
inaugural route being the busy Nairobi - Mombasa connection. This will be
followed by regular services to Malindi and Kisumu. In 2007, with the aim of
transforming the group into a transcontinental carrier, Fly540 intends to launch
its first international services into the East African region with a minimum of
four new destinations. A further four routes are also planned for 2008.
The airline will initially deploy a fleet of two modern turbo prop aircraft
offering the preferred mix of comfort, speed and economic operating costs. In
2007, Fly540 plans to add two additional similar aircraft.
David Lenigas, Lonrho"s Joint Executive Chairman and Chief Executive, commented:
"Our investment in Fly540 represents a solid platform into the Kenyan business
sector and an ideal fit with Lonrho"s objective to invest in businesses that can
make a substantive difference to the region. Business in Africa is currently
severely hampered by the lack of short haul flights between East and West and we
strongly believe that Fly540 represents an excellent investment opportunity."
Fly540 already has the necessary staff and facilities in place to launch the
airline. Offices and check-in facilities are established at Nairobi Domestic and
International Terminals as well as at Mombasa Airport.
Fly540"s Chief Executive Don Smith (48) and Chief Operations Officer Neil
Steffen (52) have both enjoyed long-standing careers with major airlines and
have combined experience of more than 50 years across African markets. Most
recently, Don Smith has headed up two airlines based in Nairobi. Neil Steffen
left British Airways in early 2006 as British Airways" General Manager for East
and Central Africa and the Indian Ocean Islands after an extensive international
management career in both the operational and commercial aspects of aviation,
where much of this time was spent developing new markets in Africa.
11 October 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 11/10/2006 08:53:46 AM Produced by the JSE SENS Department
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