9th May 2007 07:02
Lonrho Africa PLC09 May 2007 Lonrho Africa Plc ("Lonrho" or the "Company") FLY540, EAST AFRICA'S LARGEST LOW COST AIRLINE EXPANDS FLEET WITH THREE NEW DOMESTIC ROUTES IN KENYA Lonrho (AIM: LAF), the pan-African company with infrastructure assets in Africa,is pleased to announce that Fly540, the low cost airline based in Nairobi inwhich the Company holds a 49% interest, is expanding its fleet with twoadditional aircraft. Two Dash 8-100 turbo prop aircraft are expected to arrive in May 2007 andsignificantly increase the capacity of the fleet allowing for new domesticroutes to Loki, Wajir and Mandera, in Kenya. The Canadian manufactured Dash 8-100 turbo prop aircraft, which carries 37passengers, has an excellent safety history and is extremely popular with lowcost airlines around the world due to low operating costs resulting in asignificantly lower break-even point. Fly540's turbo prop aircraft are far morefuel efficient than jets, allowing Fly540 to offer low budget fares, filling alarge gap in the Kenyan market for affordable no frills air travel. Last month Fly540 carried over 10,000 passengers demonstrating the demand forlow budget air travel in East Africa and the potential that this market offers.The rapidly increasing demand for such services makes this a high growth area ofbusiness aligning it with Lonrho's renewed strategic focus. David Lenigas, Lonrho's Executive Chairman and Chief Executive, commented: "We are very pleased with the addition of the two Dash 8-100's. This adds a lotof value to the existing fleet and is a significant step towards expanding toregional destinations outside Kenya in the near future. The direction Fly540 has taken significantly strengthens Lonrho's position andstrategy aimed at enhancing infrastructure and related services in Africathrough investments in these high growth sectors. It is our intention to providelow cost value for money air travel in Kenya and the region, and Fly540 havebeen instrumental in allowing this to happen." 9 May 2007 Enquiries: For further information, please contact: Lonrho Africa Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379 Notes to Editor: About Fly540 Fly540 introduced its first service to Mombasa 6 months ago on 24th November,2006 and was well received by both business and leisure travellers. The airlinehas since added a further three routes including Malindi, Lamu and Kisumu and isthe largest domestic low budget air carrier in East Africa. The Group intends toexpand to international destinations towards the end of 2007 to include aminimum of four other regional destinations in East Africa and a further four in2008. About Lonrho Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the infrastructure,transport, natural resources, leisure and agribusiness sectors. Lonrho'sexecutive team has considerable experience across these industries in a widerange of countries. Lonrho announced investments in Luba Freeport, Norse Air,Fly540, Brinkley Mining Plc and Nare Diamonds Ltd in 2006 ,an investment inSwissta Water, through Strenner Holdings, in January 2007 and an investment inAguas de Mocambique Lda which owns Maputo's largest bottled water brand Aguas deNamaacha This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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