LONR Lonrho

RNS Number:3767F
Lonrho PLC
09 October 2007

9th October 2007


                                   Lonrho Plc

                         ("Lonrho" or "the Company")


  Lonrho signs agreement to establish it's regional airline, Fly540, in Angola


Lonrho (AIM: LONR), the expanding conglomerate with a portfolio of African
investments, is pleased to announce that it has signed an agreement that,
subject to the approval of a final business implementation plan to be submitted
shortly, will lead to the creation of a joint venture with GEFI, (Sociedade de
Gestao e  Participacoes Financeiras SARL), one of the largest internal
investment companies in Angola, to set up a new airline in Angola.


The airline will be called 'Fly 540 Angola', and will replicate Lonrho's
successful Fly 540 airline which is already established and operating in Kenya.
Lonrho will utilise the skill and experience available within the existing Fly
540 operation to rapidly develop the new airline to become a major market force
in Angola.


GEFI, through its wholly owned aviation subsidiary, Planar, has provisionally
agreed to provide Planar's assets to the joint venture including a 1,000m2
hangar; 400m2 of offices and a ticket office on a long term, peppercorn, rental
at 4th February International Airport, the main airport in Luanda.  Planar
currently hold an Air Services Licence which will be used for Fly540 Angola.



It is planned to commence operations in the domestic market early in 2008.
Initial deployment will be a combination of modern turboprops and regional jets,
which will provide regular scheduled services to ten key locations within
Angola.  The new airline will focus on quality, reliable passenger services and
it is scheduled to be operating ten aircraft by the end of 2008.



Freight and charter markets will also be developed concurrently with the
passenger market. The budget for establishing the company in year one has been
committed at US$ 9.0 million, of which Lonrho will provide US$ 3.0 million with
US$ 6 million funded locally.



Fly540 Angola will be defined as a 'strategic company' under Angolan
legislation, as a result of which 51% of the company will be held by GEFI and/or
other Angolan partners. However, under the terms of the joint venture agreement,
Lonrho will receive 60% of the profits of the business.



Aviation services provide an essential means of transport in Angola, where the
population is very dispersed and the road and rail infrastructure cannot meet
demand.





David Lenigas, Chairman and CEO of Lonrho commented:



"The results of our market analysis show that the domestic market in Angolan
aviation is growing at 20% per year and we also plan to commence international
flights in due course.



"This is a significant further step in establishing Fly540 as an integrated, pan
African regional carrier of international standards. We expect Fly 540 to be
flying in seven countries by the end of the first quarter of 2008."





 ENQUIRIES


Lonrho Plc                                                  +44 (0) 20 7016 5105
David Lenigas, Chief Executive                              +44 (0)7881 825 378
Emma Priestley, Executive Director                          +44 (0)7867 785 177

Pelham PR
Charles Vivian                                              +44 (0) 20 7743 6672
                                                            +44 (0) 7977 297903
Alisdair Haythornthwaite                                    +44 (0) 20 7743 6676
                                                            +44 (0) 7714 721379

Collins Stewart Europe
Hugh Field                                                  +44 (0) 20 7523 8350
Jonny Sloan



NOTES TO EDITORS



About GEFI:



GEFI is one of the largest internal investment companies in Angola, with
successful joint ventures in more than forty companies in the industrial,
services and financial sectors including CUCA (Angola's largest brewery), Port
operations with Maersk and in the financial sector with Banco Sol.



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 (retained)
*               Nare Diamonds - www.narediamonds.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
*               Bytes and Pieces


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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