LONR Lonrho

    
  Lonrho PLC
  04 June 2008
   

    4 June 2008
    LONRHO PLC
     ("Lonrho" or the "Company")

    FLY540 DIVISIONAL UPDATE

    Lonrho (AIM: LONR) , the conglomerate with a structured portfolio of African investments, is pleased to announce that substantial
progress has been made in the scheduled development of the Company's modern pan-African airline, Fly540. Fly540 currently provides safe
international passenger and freight services, in East Africa, with plans to expand across the continent.

    Fly540 continues to focus on providing aviation services to the domestic and regional markets within Africa, to the highest
international standards, utilising the latest technology and equipment. The Fly540 business model focuses on the use of highly efficient
aircraft, (ATR's) and streamlined and cost effective operations aimed at mininmising overheads to establish regional hubs, ahead of
developing a full scale Africa wide network, flying east to west and north to south across the continent.

    Fly540 Kenya

    Since establishing Fly540 in Kenya in 2007, it has successfully developed to become the second largest carrier in Kenya, after the
national airline, Kenya Airways, carrying up to 20,000 passengers a month. Hubbed out of Nairobi, and serving all of the main domestic
locations, the airline has built a strong reputation for reliability, service and value.

    Fly540 Kenya became cash positive in its first year, establishing itself as the premier private passenger airline servicing the domestic
market in Kenya. In January 2008, as part of Fly540's pan-African expansion plans the airline moved to its international phase. Fly540 Kenya
has now established new routes from Nairobi to Uganda, Somalia, Southern Sudan, and Tanzania. By the end of 2008, it plans to add new
services to Zambia, Rwanda and the DRC.  

    Fly 540 Angola

    The second hub being established in the pan-African roll out of Fly540 is in Angola. In October 2007, Lonrho agreed to form a new joint
venture in Angola to develop a new domestic airline. The airline, Fly540 Angola, is being developed on the ground, where the Fly540 Angola
management team is currently in place, and recruiting and training maintenance staff and cabin crew. The development of ticket and
administration offices, hangars and infrastructure necessary for the airline to operate is at an advanced stage and is nearing completion.
Two aircraft will be deployed to Luanda in June 2008 and a further four new aircraft deployed by September 2008.

    Following the successful Fly540 Kenya model, Fly540 Angola will, as routes build, fly to fifteen domestic locations throughout Angola.
Once established as a leading domestic operator, appropriate regional routes to neighbouring countries will follow.

    Fly 540 pan-African Expansion Plans

    In the second half of 2008, Fly540 will open its third strategic hub, to service West Africa. This will be based in Ghana and service
domestic and regional routes. 

    In the interim, during the remainder of 2008 and 2009 the airline will develop a series of key subsidiary hubs, which will facilitate
both domestic and inter country traffic on a localised basis. Countries at feasibility stage as subsidiary hubs include Zimbabwe; Djibouti;
Guinea; South Africa, Mozambique, Algeria and Equatorial Guinea. Each of the localized domestic hubs will be connected with a senior
regional hub.

    Following the establishment and successful operation of the three senior hubs, Kenya, Angola and Ghana, a regional jet service (Boeing
737-500's) will be established to untie the three hubs and complete the delivery of the Fly540 airline concept.

    David Lenigas, Executive Chairman of Lonrho commented: 

    "The market opportunity to develop a quality, efficient and international standard pan-African airline is significant, Fly540's success
in East Africa to date is testimony to this. We see similar opportunities for Fly540 throughout Africa and are extremely positive about the
future growth prospects for the airline. Economic growth in the continent is being limited by of the lack of core infrastructure in place.
Fly540 delivers a low cost, reliable solution to travelling around the continent providing huge benefits to local communities and providing
a critical means of connecting key African commercial hubs. We believe that Fly540 will continue to develop and support economic growth in
Africa, becoming a market leader in the African aviation sector in the medium term."


    LONRHO 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 de Borchgrave, Executive Director    +44 (0)7867 785 177
                                            
 Pelham PR                                  
 Charles Vivian                            +44 (0) 20 7743 6672
                                           +44 (0) 7977 297903
 James MacFarlane                          +44 (0) 20 7743 6375
                                           +44 (0) 7841 672831
                                            
 Collins Stewart Europe : NOMAD to Lonrho   
 Hugh Field / Simon Alston                 +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's shares are traded
on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure,
transportation, support services, hotels and natural resources. The Company has over 19,000 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)
    Lonrho Mining - www.lonrhomining.com 
    Luba Freeport - www.lubafreeport.com 
    Fly540 - www.fly540.com 
    Swissta Holdings - www.swissta.com 
    SA Independent Liner Services - www.saliners.com 
    Bytes and Pieces www.bytespieces.com 
    Kwikbuild - www.e-kwikbuild.co.za 
    LonZim - www.lonzim.co.uk 



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