Lonrho Acquires a Further Two New ATR 72-500 Aircraft for Delivery in 2010 to Meet Projected Requirements for Growth of Its Fly540 African Airline

6 February 2008
Content from a Premium Partner
Lonrho (London)
press release

Lonrho (AIM: LONR), the expanding conglomerate with a structured portfolio of African investments, is pleased to announce that it's wholly owned subsidiary, Lonrho Air (BVI) has signed an agreement with ATR to purchase a further two new, ATR 72-500 aircraft.

This second order comes one month after Lonrho signed an agreement with ATR for 8 new aircraft to be delivered in 2008 and 2009. The aircraft will be deployed by Lonrho's African airline, Fly540, and will be configured with 54 seats in economy and 12 in first class.

Lonrho's wholly owned subsidiary, Fly540 Africa, is on course to develop its aviation network across Africa, providing much needed international standard aircraft and services. Fly540 management believe the ATR 72-500 to be the ideal aircraft for its pan African operation, providing the latest technology, combined with excellent reliability and unparalleled fuel economy. The lead time for new aircraft from many manufacturers, including ATR, is three to four years, and Lonrho is delighted that ATR's support and commitment in the roll out of Lonrho Air has facilitated meeting Fly540's requirements for 2008, 2009 and 2010.

As with the previous order, 85% of the cost is expected to be financed over a fifteen year lease agreement backed by a COFACE French Government Guarantee, with the 15% deposit payable in instalments up until delivery in 2010.

Fly 540 will be flying in eight African countries in 2008 and the new aircraft will provide the ability for the airline to continue its expansion plans to link African countries with a quality airline that flies East to West and North to South. The ATR 72-500 is the latest development of the reputable and long established ATR 72. It draws from the in-service experience of more than 750 ATR aircraft flying 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 on short-haul sectors and the aircraft provides the lowest seat-mile costs in this market.

The ATR 72-500 features exceptional operational economics when compared to similar sized turboprop and jet competitors. On typical regional sectors of 200 Nautical miles, ATR 72 operating costs are up to 40% more economic than a similar sized regional jet.

David Lenigas, Lonrho's Chairman stated :

" We are delighted that we have been able to agree the purchase of a further two new aircraft from ATR which takes the Fly540 fleet to twelve ATR's.

In conjunction with the roll out of the regional jets to be utilised by Fly540, this aircraft combination allows Fly540 to offer the best standards of customer service and safety at the most economical rates. Modern aircraft and international standards are desperately needed in the African airline sector, and by forward planning with key manufacturers such as ATR, Lonrho can ensure that it can deliver both, and over time, provide much needed international standard aviation services to connect Africa".

ENQUIRIES

  • Lonrho Plc +44 (0)20 7016 5105
  • David Lenigas, Executive Chairman +44 (0)7881 825 378
  • Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
  • Emma Priestley, Executive Director +44 (0)7867 785 177
  • Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903 A
  • Alisdair Haythornthwaite +44 (0) 20 7743 6676, +44 (0) 7714 721379
  • Collins Stewart Europe: NOMAD to Lonrho Hugh Field /Jonny Sloan +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 is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 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
  • 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
  • Kwikbuild – www.kwikbuild.co.za
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