11th Oct 2006 07:00
Lonrho Africa PLC11 October 2006 LONRHO AFRICA PLC ("Lonrho" 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 sharecapital of Five Forty Aviation Limited ("Fly540" or "the airline") for cashconsideration of US$1.5 million. Fly540 is a recently established low costairline based in Nairobi, Kenya. Lonrho has been granted board representationwith David Lenigas assuming the role of Chairman. As well as providing freight services, Fly540 has been created to meet thegrowing 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 populartourist destination with a thriving domestic air travel market. Fly540 plans to commence operations in Kenya within two months, with theinaugural route being the busy Nairobi - Mombasa connection. This will befollowed by regular services to Malindi and Kisumu. In 2007, with the aim oftransforming the group into a transcontinental carrier, Fly540 intends to launchits first international services into the East African region with a minimum offour new destinations. A further four routes are also planned for 2008. The airline will initially deploy a fleet of two modern turbo prop aircraftoffering the preferred mix of comfort, speed and economic operating costs. In2007, 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 businesssector and an ideal fit with Lonrho's objective to invest in businesses that canmake a substantive difference to the region. Business in Africa is currentlyseverely hampered by the lack of short haul flights between East and West and westrongly believe that Fly540 represents an excellent investment opportunity." Fly540 already has the necessary staff and facilities in place to launch theairline. Offices and check-in facilities are established at Nairobi Domestic andInternational Terminals as well as at Mombasa Airport. Fly540's Chief Executive Don Smith (48) and Chief Operations Officer NeilSteffen (52) have both enjoyed long-standing careers with major airlines andhave combined experience of more than 50 years across African markets. Mostrecently, Don Smith has headed up two airlines based in Nairobi. Neil Steffenleft British Airways in early 2006 as British Airways' General Manager for Eastand Central Africa and the Indian Ocean Islands after an extensive internationalmanagement career in both the operational and commercial aspects of aviation,where much of this time was spent developing new markets in Africa. End For further information, please contact: Lonrho Africa Plc +44 (020) 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340 436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 Notes to Editors 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 naturalresources, infrastructure, leisure and agribusiness sectors. Lonrho's executiveteam has considerable experience across these industries in a wide range ofcountries. This year, the Company has announced investments in Brinkley MiningPlc, Nare Diamonds Ltd and Luba Freeport in Equatorial Guinea. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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