Lonrho PLC
Lonrho affiliate LonZim to launch Fly540 airline operations in Zimbabwe
Lonrho PLC (AIM: LONR) announced that LonZim PLC (AIM: LZM), in which it holds a 24.53 percent stake, is to launch operations of African low-cost airline Fly540 in Zimbabwe.
Fly540, also known as Five Forty Aviation, started operations in November 2006 from its base in Nairobi, Kenya. It operates domestic and international passenger and freight services in East Africa. The move to Zimbabwe is part of the strategy to roll out the service across Africa with local partners in each country.
Lonrho holds a 49 percent stake in the airline.
Flights from Zimbabwe are scheduled to start from September 2009.
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, Lonrho said.
The launch of Fly540 Zimbabwe is also 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.
LonZim Air, a wholly owned subsidiary of LonZim plc, has invested US$200,000 in obtaining the necessary air services licence. LonZim will invest a further US$4.3 million in an ATR 42 turbo prop from the Lonrho Aviation fleet, and US$ 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.
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