LONR Lonrho

 

TIDMLZM TIDMLONR 
 
RNS Number : 9400U 
LonZim PLC 
01 July 2009 
 

1st July 2009 
LonZim plc 
("LZM" or "the Company") 
 
 
Fly540 to commence flights in Zimbabwe 
LonZim Plc ( AIM : LZM ) is pleased to announce that it is to commence 
operations for a Fly540 airline based in Zimbabwe to service both the domestic 
and regional markets and emerging local and connecting traffic. Flights are 
scheduled to start from September 2009. 
Fly540 is a Lonrho Plc owned airline operating in Africa and to international 
standards. Fly540 is being rolled out across Africa with local partners in each 
country, to service the domestic and regional African markets. The company 
provides local and regional distribution for international flights coming into 
Africa with a safe, reliable and punctual service. Fly540 is building a unique 
African airline connecting Africa north to south and east to west ( 
www.fly540.com ). Lonrho Plc owns 24.53% of the issued share capital of Lonzim 
Plc 
LonZim's 'Fly540 Zimbabwe' will deliver affordable air links to key domestic and 
regional cities from a Harare hub and will be an integral part of the Fly540 
network that will be flying in nine African countries by the end of 2009. 
The launch of Fly540 Zimbabwe is central to LonZim's investment strategy of 
identifying current market opportunities in Zimbabwe and establishing companies 
that will benefit from the economic recovery of the country. The potential 
aviation market on a domestic and regional basis is significant and currently 
underserved. For Zimbabwe to rebuild its economic base and attract investment it 
is essential that it has a first world transport capability. Having observed the 
market opportunity for over a year, Fly540 Zimbabwe believes that now is the 
right time to commence operations. 
LonZim Air, a wholly owned subsidiary of LonZim plc, has invested US$ 200,000 in 
the acquisition of 90% of Zimbabwe company Sol Air (private) Limited. Fly540 
Zimbabwe has now obtained the necessary Air Services License and following 
completion of the arrangements with Lonrho's Fly540 it will be possible for 
Fly540 Zimbabwe to finalise the necessary permissions to operate. A further US$ 
4.3 million (resulting from an independent valuation) will be invested in 
acquiring an ATR 42 turbo prop from the Lonrho Aviation fleet, and US$ 2.0 
million for the operational costs associated with commencing operations and a 
working capital provision of US$ 3.9 million for the first twelve months. This 
capability will be complemented by a freight service. Fly540 Africa will receive 
US$ 100k to initiate flight operations in Zimbabwe, and thereafter a license fee 
of 2.5% of gross turnover and a monthly management fee of US$ 35,000 for 
managerial services. 
Fly540 Zimbabwe will operate the 'low cost' airline from Harare International 
Airport and is scheduled to open flights to Bulawayo and Victoria Falls on a 
domestic basis and Lubumbashi; Lilongwe; Lusaka; and Beira on an international 
basis. Once established, the route network will be expanded. 
The agreement between Fly540 Africa (BVI), a wholly owned subsidiary of Lonrho 
plc and LonZim Air (BVI), a wholly owned subsidiary of LonZim plc, constitutes a 
related party transaction under the AIM Rules for Companies. The independent 
directors (Paul Heber and Paul Turner) consider, having consulted with the 
Company's nominated adviser WH Ireland Ltd, the contracts to be fair and 
reasonable in so far as shareholders are concerned. 
 
 
David Lenigas, Executive Chairman of LonZim stated: 
"We are delighted to be able to launch Fly540 in Zimbabwe. Not only does it make 
sound commercial logic, but it is an important step forward for Zimbabwe and 
helps stimulate economic recovery. Good transport networks are essential for the 
growth of Africa, and Fly540 is delivering an international standard, quality 
aviation service connecting the continent." 
 
 
+--------------+--------------+ 
| LonZim       | +44          | 
| Plc          | (0)20        | 
|              | 7016 5105    | 
+--------------+--------------+ 
| David        | +44          | 
| Lenigas,     | (0)7881      | 
| Executive    | 825 378      | 
| Chairman     |              | 
+--------------+--------------+ 
| Geoffrey     | +44          | 
| White,       | (0)7717      | 
| Chief        | 307 308      | 
| Executive    |              | 
| Officer      |              | 
+--------------+--------------+ 
| Emma         | +44          | 
| Priestley,   | (0)7867      | 
| Executive    | 785 177      | 
| Director     |              | 
+--------------+--------------+ 
|              |              | 
+--------------+--------------+ 
| WH           |              | 
| Ireland      |              | 
| Ltd:         |              | 
| NOMAD        |              | 
| and          |              | 
| Broker       |              | 
+--------------+--------------+ 
| James        | +44 (0)      | 
| Joyce        | 207 220 1666 | 
+--------------+--------------+ 
| Sarang       |              | 
| Shah         |              | 
+--------------+--------------+ 
| Philip       |              | 
| Haydn-Slater |              | 
| (Broker)     |              | 
+--------------+--------------+ 
|              |              | 
+--------------+--------------+ 
| Pelham       |              | 
| Public       |              | 
| Relations    |              | 
+--------------+--------------+ 
| Charles      | +44 (0)      | 
| Vivian       | 20 7337 1538 | 
|              | +44 (0) 7977 | 
|              | 297903       | 
+--------------+--------------+ 
| James        | +44 (0)      | 
| MacFarlane   | 20 7337 1527 | 
|              | +44 (0) 7841 | 
|              | 672831       | 
+--------------+--------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCUUUUWMUPBGCG 
 

Lonrho (LSE:LONR)
Historical Stock Chart
From Jun 2024 to Jul 2024

Lonrho (LSE:LONR)
Historical Stock Chart
From Jul 2023 to Jul 2024