Fly540 Zimbabwe

[Ted T. Beefcake]

Source: RNS News Item (http://www.lonrho.com/News/RNS_Announcements/RnsNews.aspx?id=779&rid=10090718)

1st July 2009

Lonrho's Fly540 to commence flights in Zimbabwe

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."


Does anyone else have any news on this purported new airline down in Zim? And if it is true, hopefully it'll give UM a real run for its money on the domestic routes (about damn time).

[Romeo E.T.]

found this on another forum

A TEAM of indigenous players is set to launch Zimbabwe's first low cost
airline within the next few weeks with a maiden flight scheduled for
September this year. The new airline's thrust will be on ensuring that
flying is both affordable and convenient and is geared to cater for the
burgeoning traveling population plying the Harare-Johannesburg and
Bulawayo-Johannesburg routes.

Aptly named Fly Kumba, the airline has positioned itself for growth in line
with the Government of Zimbabwe 's quest to re-brand itself and re-emerge as
a the bread basket of the region if not the continent. Fly Kumba Chief
Executive Officer, Lloyd Muchaka said the airline's vision and mission was
centered around ensuring that flying is affordable to everyone.

"We intend to become Zimbabwe's preferred low-cost airline, delivering the
lowest air fares with the highest consumer value add offering world class
service to price sensitive consumers.Fly Kumba intends to fulfill everyone's
dream of flying based on a fare of below US$ 80, departure tax included in
this price for a flight from Harare to Johannesburg," said Muchaka.

He said the maiden flight was scheduled for September, 2009. In line with
its vision, Fly Kumba seeks to compliment the tourism service and sees the
ongoing efforts to re-brand the country as another opportunity for the
airline to play their own part in enhancing the image of the country to the
outside world.

While flying is often viewed as an exclusive privilege for the few elite,
Fly Kumba Chief Financial Officer, Patrick Chapwanya said the airline was
cognisant of the fact that the prevailing economic recession meant tight
budgets for the ordinary person hence the introduction of this low cost
service.

Muchaka is currently working towards a Masters of Business Leadership, SBL
with UNISA and is a holder of Bachelor of Commerce (Informatics and
Financial Management) as well as Diplomas and certificates in Systems
Analysts and Design and Computer Programming. He worked for Siemens South
Africa as a product manger for three years from 2003 to 2006 and has been in
the road and transport industry since then.

Chapwanya qualified as a Chartered Accountant in 2002. He holds an Hons
Bachelor of Accounting Service Degree from Unisa. Chapwanya served as chief
financial officer of an investment firm, Community Investment Holdings (CIH)
until March 2005 and prior to that held various auditing and financial
management positions with another investment group, the Powertech Group in
South Africa. From 2005 to date he has been heading a management consultancy
firm based in South Africa. Chapwanya currently serves as a non executive
director of JASCO Electric Holdings which is listed on the Johannesburg
Stock Exchange.

Muchaka said the airline's primary routes will be Harare - Johannesburg and
flights would be introduced for other routes such as Harare-Bulawayo,
Harare-Vic Falls, Johannesburg Vic Falls and Harare-Kariba. In that regard,
Fly Kumba is geared to provide efficient service by ensuring that flight
schedules are always adhered to as well as providing various flights during
the course of the day to ensure that travelers are not inconvenienced in
terms of travel arrangements.

Fly Kumba has a new generation fleet of Boeing 737, 200 backed by cutting
edge technology and infrastructure to ensure the highest standards in
operating efficiency.
"We enjoy maintenance support from leading Aviation companies with state of
the art technology. This ensures that there would not be compromise on
safety, reliability or on-time travel."

Fly Kumba has a working relationship with world renowned low-cost support
for reservations and revenue management service providers. It intends to
introduce e-booking and e-ticketing facilities on line as well as
tele-booking.
Muchaka said Fly Kumba was also geared to play a part in sport tourism by
maximising on the FIFA 2010 World Cup in South Africa next year.

He said the World Soccer showcase presented the Zimbabwean tourism industry
with countless opportunities and Fly Kumba would be an integral catalyst to
this benefit ensuring that travel in and around Zimbabwe is affordable and
reliable.
"By 2010, Fly Kumba would be a regional and international airline offering
flights in the SADC region and beyond.It is Fly Kumba's objective to build a
sustainable National and Regional low cost airline," he said. Muchaka said
Fly Kumba is committed to being a good corporate citizen and in that regard
would continue to provide for the betterment of the community in which it
operates. The airline has a comprehensive Corporate Social Investment
strategy premised on giving back to the less privileged members of society
in a sustainable and lasting effect.

[JTrain]

I might have believed them, up until this line:

Fly Kumba has a new generation fleet of Boeing 737, 200 backed by cutting
edge technology and infrastructure to ensure the highest standards in
operating efficiency.
"We enjoy maintenance support from leading Aviation companies with state of
the art technology. This ensures that there would not be compromise on
safety, reliability or on-time travel."

On another forum, I'd read that it was going to be more like the Kenyan Fly540 operation.

If they use ATRs and Dash 8's, they might be able to keep those ticket costs down.

B732s will be a gas-guzzling maintenance nightmare!

[Ted T. Beefcake]

Fly Kumba has a new generation fleet of Boeing 737, 200 backed by cutting
edge technology and infrastructure to ensure the highest standards in
operating efficiency.

B732s will be a gas-guzzling maintenance nightmare!

^My thoughts exactly - 732s aren't exactly synonymous with 'cost effectiveness'.:\

Still, i hope they are at least able to get further than the now defunct Zambezi Airlines and Mid-Air did (i.e. nowhere), as that will at least force UM to pull up their socks.

[JTrain]

Still, i hope they are at least able to get further than the now defunct Zambezi Airlines and Mid-Air did (i.e. nowhere), as that will at least force UM to pull up their socks.

Are you sure Zambezi Airlines is defunct? I saw them flying two weeks and some change ago bringing the Zambian leader to Goma.

[Ted T. Beefcake]

Are you sure Zambezi Airlines is defunct? I saw them flying two weeks and some change ago bringing the Zambian leader to Goma.

Prior to the advent of the current 'Zambezi Airlines' from Zambia, Air Zambezi (http://www.rati.com/ALLANDING_19364.htm) (my mistake!) was a start up in Zim quite a few years back, in about 2002 if i remember correctly.

They were very much publicized, but only really lasted a few months before folding during the then hyper-inflationary economic environment.They operated an all-prop fleet too, with a fairly attractive Tiger Fish logo.

[grjplanes]

The way I understand it is that Fly540 and Fly Kumba is two totally different projects, both planning new airlines in Zim.
Fly540 with ATRs or Dash8s starting domestic flights in Zim, then adding regional flights to Lusaka, Lilongwe, Beira, Lubumbashi...not interested in routes to South Africa.
Fly Kumba with 737-200s (the "next gen" ones...haha) as a low-cost airline starting with HRE-JNB and then domestic and VFA-JNB.
Both have a different model and focus.

[rodmur]

Air Zambezi started ops in May 1998 and continued to 2002 when the wheels came off the economy.
I was the CEO

[Ted T. Beefcake]

Rodmur, given the present changes seen in Zim in terms of dollarization, do you think a new private airline has a shot at making it and eventually wrestling the market away from UM?

[JTrain]

I'm interested in Rodmur's answer as well but offhand I'd say:

Fly540 - yes, this company knows what the heck it is doing and will use the right aircraft for the market as well as a good sales strategy.

Fly Kumba, & their new generation fleet of Boeing 737-200s :-) - no. I think they'll end up a bit like another B732/recent entry into the African aviation market: SkyJet Uganda.

Wildcard - You never know what strings Uncle Bob will be pulling.

[Ted T. Beefcake]

Wildcard - You never know what strings Uncle Bob will be pulling.

Funny you should say that:

Three International Airlines Chased Away (http://www.thezimbabweindependent.com/index.php/business/22135-three-international-airlines-chased-away)

Three International Airlines Chased Away http://www.thezimbabweindependent.com/images/M_images/pdf_button.png (http://www.thezimbabweindependent.com/index.php/business/22135-three-international-airlines-chased-away?format=pdf) http://www.thezimbabweindependent.com/images/M_images/printButton.png (http://www.thezimbabweindependent.com/index.php/business/22135-three-international-airlines-chased-away?tmpl=component&print=1&layout=default&page=) http://www.thezimbabweindependent.com/images/M_images/emailButton.png (http://www.thezimbabweindependent.com/index.php/component/mailto/?tmpl=component&link=aHR0cDovL3d3dy50aGV6aW1iYWJ3ZWluZGVwZW5kZW50LmNvbS9pbmR leC5waHAvYnVzaW5lc3MvMjIxMzUtdGhyZWUtaW50ZXJuYXRpb25hbC1haXJ saW5lcy1jaGFzZWQtYXdheQ%3D%3D) Thursday, 05 March 2009 22:52 GOVERNMENT last year refused three airlines permission to fly into Zimbabwe in what aviation experts said was a move to protect the national airline from competition and loss of revenue, it was revealed this week.
Speaking to tourism players to formally introduce the Minister of Tourism and Hospitality Walter Mzembi to them, Zimbabwe Tourism Authority (ZTA) chief executive Karikoga Kaseke said three airlines, Nationwide from South Africa, Malaysian, and Emirates from the United Arab Emirates, had expressed a desire to fly to Zimbabwe but were not allowed to, as authorities said they wanted to protect Air Zimbabwe.“The benefit the airlines could have brought to the economy in terms of traffic, revenue and tourists telling the true Zimbabwean story could have been very significant,” said Kaseke.
“Reasons such as ‘we are protecting our airlines were cited. What are we protecting it (Air Zimbabwe) from? They should learn to compete with other airlines. That is the only way they can remain competitive,” said Kaseke.
Kaseke said it was not wise to treat the national airline as if it started operating last year when it has been in existence for a long period.....
I think, as the article mentions, that the defensive-mentality that has become entrenched in Zim governmental departments now as a result of the last 10 years of decay, will be hard to shake. All the best of luck to Fly540.

[Solid Rust Twotter]

Nationwide...?

[Ted T. Beefcake]

As taken from The Herald, Zimbabwe:
The Herald (http://www.herald.co.zw/inside.aspx?sectid=9148&cat=8)

LonZim’s Fly540 may begin operations in October: Goss

Business Reporter

LONZIM’s private airline, Fly540, could commence operations before the end of October this year, provided it gets an operator’s licence from the Civil Aviation Authority of Zimbabwe.

The airline project, a partnership with small airline Sol Aviation (Private) Limited, was part of LonZim’s asset growth initiative, would see LonZim spending over US$10 million by 2010.

Fly540 was largely expected to have its first flight next month, but is yet to get the green light from the aviation regulatory authorities.

Initially, Fly540 would operate two passenger planes and a single aircraft.

LonZim country manager Geoff Goss told Herald Business that the airline only awaited an Aviation Operator’s Certificate from the CAAZ.

"We are only waiting for an Aviation Operator’s Certificate from the Civil Aviation Authority of Zimbabwe.

"If we got the licence we expected to have the first flight in October," said Mr Goss.

Mr Goss declined to mention what percentage shareholding LonZim held in Fly540, except that it had a controlling stake.

"This was a partnership with a small airline company, but was a deal big in value.

"We partnered with Sol Aviation so we could use their vast experience in the aviation industry," said Mr Goss.

Flight 540 would initially mainly focus on domestic routes and regional destinations before committing to international routes.

The airline would initially service domestic routes to Bulawayo, Victoria Falls, Kariba and Mutare and Johannesburg in the region.

LonZim is one of the fastest expanding foreign companies and has investments in several sectors.

Presently, LonZim controls 60 percent of Zimbabwe Stock Exchange-listed Celsys, 100 percent of chemical manufacturer Millpal, 51 percent of pharmaceutical firm Medsure and Paynet.

In addition, the London Stock Exchange-listed investment company owns and operates Leopard Rock in Manicaland and has snapped shares in Medalsport, FogertMeNot and Blueberry.

Asked what made LonZim fancy local investments Mr Goss said Zimbabwe had long proved its potential as an investment destination.

During a recent Extraordinary General Meeting LonZim shrugged off stiff pressure from shareholder AMB Capital, which wanted the group to dispose of all its investments in Zimbabwe.

The group said the settling economic environment presented several investment opportunities across all sectors of the economy.

So with UM on the verge of bankruptcy, perhaps this new airline will finally become a reality.

[Carrier]

Quote: "......... would operate two passenger planes and a single aircraft."

????

[skyloone]

Has anyone heard anything of Fly540 in Zim again. I trust the indiginisation bill should reck things?

I'm also not familiar with Sol Aviation in Zim... Who are they & who's involved and when did they commence ops? Never came across the name while out there. Mentions their vast experience? Fly 540 paid $200 000 for the AOC!?

Any info would be much appreciated.

Skyloone

[Whenwe]

Sol Aviation in Zim... Who are they

Solenta Aviation Website (http://www.solenta.com)

Strong reputable company

[Vialengai]

Sol Aviation is nothing to do with Solenta Aviation. Sol was started and conceptualised in 1998 to operate Let410 aircraft around the tourism circuit in Zimbabwe. It operated in partnership with Landela Safaris and, what was then Zimbabwe Sun. It ceased operations in 2001. The original owner is dead and the ownership of the company has been assumed by someone else! The AOC and ASP will be long since lapsed.

[Habari]

Correct Vialengai. They had a Nevergo,Chieftain and B200 as well.
The best thing about Sol was the two lovely ladies working in the office in Harare!!

[skyloone]

If AOC expired, then it does raise the question of why one would shell out $200 000 on the AOC..... unless of course... you manage to get a 'good understanding' with a couple of well connected parties. They mention about having all the rights etc.. to fly routes. Now I happen to know of a local & current AOC holder who has tried in vain to establish even an FBO at Harare main with the intention of being able to serve add hoc charter to business and diplomatic travel. Been blocked in every manner at every twist and turn for years!

[Ted T. Beefcake]

Taken from The Herald site:

Fly540 yet to receive operator’s certificate

By Golden Sibanda

Lonzim subsidiary, Fly540 Zimbabwe, initially scheduled to start operations last year, is yet to receive an air operator’s certificate from the Civil Aviation Authority of Zimbabwe.

It was not immediately clear as to the issues surrounding the licencing with CAAZ general manager Mr David Chawota saying he was not aware of any constraints in issuing out the licence.

He said Fly40 could approach him directly if it continued to face difficulties obtaining the air operator’s certificate.

Fly540 Zimbabwe, 90 percent-owned by LonZim, had planned to take to the skies in September last year. The date was moved to October of the same year, but it still came unstuck as it had not obtained an operator’s certificate.

Chief executive Mr Geoffrey White said the company would soon launch Fly540 Zimbabwe and was in the process of scouting for viable routes.

"The company has allocated funds from existing resources for the deployment and establishment of the airline. Operations will be based at Harare Airport to serve as a regional freight and passenger operation as and when the market develops.

"LonZim has completed the acquisition of the initial aircraft to launch the Fly540 service in Zimbabwe and is monitoring the market opportunity and the provision of infrastructure to schedule deployment targets while the air operator’s certificate for Zimbabwe is being obtained," said Mr White.

The London conglomerate is hopeful operations would now begin before the end of this quarter provided it gets the operator’s licence.

Listed on London’s Alternative Investment Market, the investment conglomerate has already splashed US$4,3 million on an ATR 42 turbo-prop aircraft from Lonrho Aviation Fleet.

Initially, LonZim would operate two passenger aircraft and a single cargo plane.

The airline project is a partnership with local private airline firm, Sol Aviation.

The United Kingdom-based conglomerate has full and controlling interests in a number of companies in Zimbabwe and is searching for more opportunities as the economic and political conditions improve.

Presently, LonZim owns 60 percent of Zimbabwe Stock Exchange-listed Celsys, which specialises in security printing, information technology and telecommunications.

It owns 100 percent of solvents and chemicals distributor Millpal, 51 percent of refrigerated distributor of pharmaceutical and medical products Panafmed, and 51 percent of mobile software provider ForgetMeNot.

In addition, LonZim owns 100 percent of electronic funds transfer solutions provider Paynet, and 100 percent of the exquisite Leopard Rock Hotel.

Outside Zimbabwe, LonZim holds 79 percent of beachfront-located Aldeamento Turistico de Macuti Hotel in Mozambique.

LonZim raised £28,7 million at its initial public offer and, in line with its mandate, the firm acquired eight businesses in various sectors between 2007 and 2009.

Each business was selected due to its ability to deliver rapid growth and build market share as the Zimbabwean economy recovers. Several of these operations are now in dominant positions in their respective markets.

LonZim said it has supported the businesses acquired and in some cases subsidised their operating costs during the worst of the economic turmoil in 2008.

The firm paid wages and overheads for businesses that, by necessity, had to operate on a barter trade system with the customers and the suppliers, as hyperinflation destroyed the foundation of the economy in Zimbabwe.

However, following a drastic change in the local economy and recapitalisation of the businesses, LonZim’s subsidiaries are now in a strong position.