Last checked at 19 Jun 2008 11:14
19th June 2008
LonZim Plc
("LonZim" or the "Company")
LonZim to launch Fly540 in Zimbabwe
LonZim Plc (AIM: LZM), which was established for the principal purpose of making investments in Zimbabwe and the Beira corridor in Mozambique, is pleased to announce that it is to launch Lonrho plc's pan-African airline, Fly540, in Zimbabwe.
Fly540 is being developed by Lonrho plc across Africa to provide quality, international standard, airline services to passengers linking African destinations. LonZim, which has the exclusive rights to Lonrho's brands in Zimbabwe, will establish a freight and passenger service, branded Fly540, based in Harare, as part of the roll out of Fly540 throughout Africa. The airline will deploy a mixed fleet of turbo prop and jet aircraft to assist with the development of the Harare hub over the course of the next 24 months. LonZim has allocated a budget for the development of Fly540 Zimbabwe of US$ 3.3 million which will be payable out of its cash resources to establish the airline in Zimbabwe and purchase the initial aircraft for deployment.
Fly540 Zimbabwe will operate as part of the Fly540 Africa network and offer domestic and regional 'low cost' air travel to existing and new target markets. The Fly540 model places as much emphasis on creating a market, as it does on taking a market share and the Harare hub is geographically perfectly placed to achieve these goals in Southern Africa.
The initial aircraft for the operation have been obtained and Fly540 Zimbabwe will own its own licences and operate in its own right. It is expected that flights will commence from Harare early in August 2008.
David Lenigas, Executive Chairman of LonZim commented:
"LonZim's mandate is to position itself for economic recovery in Zimbabwe. Quality aviation services are an essential precursor for any economic recovery. Fly540 sees the excellent facilities at Harare airport, and Zimbabwe's strategic location, as fundamental elements to providing pan-African aviation services. The airline will develop the necessary functions in Harare to meet current demand, as well as prepare for any significant improvement in the Zimbabwean economy."
ENQUIRIES
| LonZim 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 Public Relations | |
| 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 | |
| Helen Goldsmith | +44 (0) 20 7523 8350 |
NOTES TO EDITORS
About LONZIM:
LonZim Plc ("LonZim") is a company focused on developing and acquiring business opportunities primarily in Zimbabwe and the region of Mozambique known as the Beira Corridor, which links Zimbabwe to the coast. LonZim was listed on the AIM market of the London Stock Exchange on 11th December 2007 after raising £29.16 million. LonZim is 20 per cent. owned and managed by Lonrho Plc (AIM: LONR) a company strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources throughout Africa.
Since listing in December 2007, LonZim has invested in or acquired control of:
Celsys Limited www.celsys.co.zw Gardoserve (Private) Ltd t/a Millpal Chemicals
Aldeamento Turistico de Macuti, SARL., a company owning land in central Beira on the Mozambique coast
Paynet Limited
and has entered into an option agreement to acquire a 51 per cent. controlling shareholding in ForgetMeNot Africa Limited.