10th Jan 2008 07:01
Lonrho PLC10 January 2008 10th January 2008 LONRHO PLC ("Lonrho" or the "Company") 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 ofAfrican 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 supportand spares package, will be in the region of US$ 145 million and delivery willbe completed on an agreed schedule delivering four during 2008 and four during2009. The aircraft will be branded Fly540, and will be configured with 54 seatsin economy and 12 in first class. ATR will assist Lonrho Air (BVI) in obtaining Export Credit cover for thefinancing of the Aircraft from COFACE and SACE, the respective Export CreditAgencies ("ECA") of France and Italy. ECA financing terms are as approved by theParticipants to the Revised Sector Understanding on Export Credits for CivilAircraft which came into force in July 2007. ECA support may extend up to 85% ofthe purchase proceeds of the Aircraft. The balance of 15% will be payable byLonrho Air (BVI) in periodic instalments, prior to each Aircraft delivery Lonrho's wholly owned subsidiary, Fly540 Africa, is developing an expandingaviation network across Africa, providing much needed international standardservices. Fly540 will be flying in eight African countries early in 2008 and thenew aircraft will provide the ability for the airline to continue its expansionplans to link African countries with a quality airline. The ATR 72-500 is the latest development of the reputable and long establishedATR 72. It draws from the in-service experience of more than 700 ATR aircraftflying 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 onshort-haul sectors and the aircraft provides the lowest seat-mile costs in thismarket. The ATR 72-500 features exceptional operational economics when compared tosimilar sized turboprop and jet competitors. On typical regional sectors of 200Nautical miles, ATR 72 operating costs are up to 40% more economic than asimilar sized regional jet. David Lenigas, Lonrho's Chairman stated: "We are delighted that we have been able to agree the purchase of eight newaircraft from ATR to expand our existing ATR fleet. The ATR 72-500 provideslower engine and airframe maintenance costs and less fuel costs than any otheraircraft in this market, whilst providing state of the art avionics and newaircraft reliability and safety. When operated on appropriate routes, itprovides an excellent competitive advantage to our business. Fly540 is developing the first true pan African airline, flying both East toWest and North to South and I am delighted that ATR, as a leading worldmanufacturer, has become a strategic part of this exciting growth story." ENQUIRIESLonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart Europe : NOMAD to LonrhoJonny Sloan/Hugh Field +44 (0) 20 7523 8350 NOTES TO EDITORSAbout LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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