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Avion / Air Atlanta Goes German

Tue Jan 24, 2006 9:01 pm

Avion Group hf is pleased to announce that it is in the final discussions on establishing an aircraft operating certificate (“AOC”) in Germany. This will strengthen the Charter & Leisure division of Avion Group outside the UK. Process is due to be finalised by end of March.

The Charter & Leisure division’s operations involve charter flights, seat provision and general travel services. Operating an AOC in Germany will provide greater critical mass with improved synergies and more diversified utilization of the Group’s aircraft fleet.

Two Airbus 320 aircraft are planned to be in operation in the region in Summer 2006, with plans for additional aircraft over time. Planned destinations will be Eastern and Southern Europe and the Middle East.

To aid in this process, Avion Group has entered into an agreement to purchase assets from the now defunct German carrier Aero Flight GmbH & Co. Luftverkehrs-KG. The agreement is subject to a number of approvals which are to be finalised by end of March.

The operation in Germany will not have a material effect on Avion Group’s current operation, with an estimated increase in turnover of 30 million euros expected this year. Avion Group has planned to spend 10 million euros in establishing and growing the operation in Germany in 2006.

Ómar Benediktsson, former CEO of Air Atlanta Icelandic, will manage operations in Germany at the beginning.

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