Benin Airlines & Utilicraft Aerospace LOI for 100 Feeder Freighters
(Cotonou, Benin Africa – December 2, 2005) -– Benin Airlines, SA - Today officials of Benin Airlines SA, and Utilicraft Aerospace Industries, Inc., executed a Letter of Intent (LOI) for 100 of Utilicraft’s FF-1080-300 ER (Extended Range) Freight Feeder aircraft, with an option on an additional 100.
The initial 100 aircraft transaction is valued at $1.35 Billion USD and has been secured by an initial $5.0M good faith deposit from Benin Airlines to Utilicraft’s lawyers today.
The agreements between the two Companies grant Benin Airlines exclusive Distributorship and a Final Assembly rights for a period of 25 years.
The Distributorship Agreement appoints Benin Airlines as the exclusive FF-1080-300 distributor for Africa and specific Middle East markets, including United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait, Jordan, Baharain, and Lebanon.
The Final Assembly Agreement will grant Benin Airlines the right to complete final assembly-kits of the Aircraft purchased by Benin Airlines.
Benin Airlines plans to locate their Final Assembly facility in either Africa, or one of the Middle East regions mentioned above.
Utilicraft will complete Final Assembly of the “kits” shipped to Benin Airlines at its planned facilities at Double Eagle II Airport in Albuquerque, New Mexico.
The FF1080-300 ER version of the aircraft is the same basic airframe of the -300 currently under development by Utilicraft Aerospace, but with a 10,000 gross weight increase to 80,000 lbs. This increase will allow the Aircraft to carry additional fuel for a max range of 2,000 nautical miles including IFR reserves, with 20,000 lbs., in containers, in five A-1, A-2, or A-3 containers, or ten LD3 containers, or a combination of containers and pallets measuring 88 in. x 125 in. each.
Benin Airlines intends to operate the aircraft as feeder freighters in the growing African and Middle East airfreight markets, to offer them on wet lease ACMI basis (Aircraft, Crew, Maintenance and Insurance included), as well as dry lease and sale.
About Benin Airlines SA:
Benin Airlines is new airline being formed to be the first genuine low cost African airline to operate direct flights across sub-Saharan Africa and to Europe, Middle East, and the Americas commencing operations in second quarter 2006. Benin Airlines is a private company formed with an investment of $250M. Launch operations include 2 x 747-200F cargo aircraft, 2 x 747-400 and 5 x 737-300 passenger aircraft.
About Utilicraft Aerospace Industries
Utilicraft Aerospace Industries, Inc., (UAI) was formed, in 2004, to target the significant problem of addressing the overnight express, international supply chain, e-commerce, and global third party logistics entities, inability to provide effective “containerized” fulfillment and distribution in the medium haul (or feeder) route segments of air cargo. The result of the Company’s research and development is a new air vehicle, the FF-1080-300 Freight Feeder aircraft, capable of cost-effectively carrying standard industry air containers on medium range/medium density routes, combined with an on-board integrated air cargo information and tracking system.
(Utilicraft) Safe Harbor Statement
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release involve risks and uncertainties and reflect the company’s current views with respect to possible future events. Readers are cautioned that no forward-looking statement can be guaranteed and actual results or events may materially differ from those projected or anticipated. In particular, the following factors, among others, could cause actual results or events to differ materially from those described in the forward-looking statements: the company’s ability to obtain and fulfil contracts for the sale of products, protect intellectual property rights and manage future growth; market acceptance of future products; product supplier delays; design and engineering certification delays or denials; and the introduction of similar products by competitors. Any forward-looking statement made in this press release is made as of the date of this press release, and the company assumes no obligation to update any such forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect the company’s business.
Contact:
Luke Butler – President Director General Benin Airlines SA
10 BP 890, Cotonou – Benin
Tel: +229 97 265 669
lukebutler@afraairlines.com
John J. Dupont – President, CEO Utilicraft Aerospace Industries
Email:
jd@utilicraft.com
Direct Number: (505) 699-7848
Fax: 505-212-0296
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