With effect from 01st November 2010 the Consumer Protection Guarantee (CPG) levy will be increased from the current R50.00 pp, per sector to R60.00 pp per sector. The Consumer Protection Guarantee (CPG) levy protects our clients as section 6A (a) of Air Services Regulations require airlines to provide guarantees for compensation to passengers for pre-paid unflown ticket revenue received in the event of airline unable to carry passengers.

Federal Airlines will also be introducing a Vilanculos Passenger Services Charge of R200.00 w.e.f. 01 November 2010 for the handling of passengers at the Vilanculos airport.  This fee is only applicable for passengers departing

from Vilanculos, Mozambique.

As of 01st November 2010 our taxes, levies and surcharges are as follows:

JNB/KMIA – VNX:  (Payable to Federal Airlines with airfares)

- Air Passenger Tax:                   R150.00

- Passenger Services charge:       R198.00

- Fuel Surcharge:                       R75.00

- CAA Passenger Safety Tax:       R11.00

- CPG:                                       R60.00

VNX – JNB:   (Payable to Federal Airlines with airfare)

- Fuel Surcharge:                       R 75.00

- CPG:                                       R 60.00

- Mozambique Departure Tax:     R280.00

- Security Tax:                           R26.00

- VNX Passenger Services Charge: R200.00

Mozambique Immigration Fee: US$3 Upon arrival (payable by passenger upon arrival at Vilanculos Airport)

*PECISION AIR COMMENCES FLIGHTS TO PEMBA & NAMPULA

Precison Air will commence flights from DAR/POL/APL/DAR on a Tuesday, Friday and Sunday from January 2011. This allows clients to arrive into Pemba from Dar es Salaam and connect to the islands of the Quirimbas Archipelago on the same day.

TUESDAY

PW 708 DAR      POL      10:00    10:40

POL      APL       11:10    11:55

APL       DAR      12:25    15:40

FRIDAY

PW 708 DAR      POL      10:00    10:40

POL      APL       11:10    11:55

APL       DAR      12:25    15:40

SUNDAY

PW 708 DAR      POL      10:00    10:40

POL      APL       11:10    11:55

APL       DAR      12:25    15:40

*AIR MOZAMBIQUE INCREASES SCHEDULE TO SOUTHERN MOZAMBIQUE

Please be informed that LAM has new flights operating directly from JHB to Vilanculos every Tuesday, Thursdays and Saturdays as of the 2nd November 2010.

Departure time 10:55 arrival 12:50. These flights connect to Inhambane at 13:20 arrival 14:00.

The exciting schedule will remain unchanged: JHB/Inhambane/Vilanculos every Monday, Wednesday, Friday and Sunday, departing JNB at 10:55.

LAM will therefore be operating on a daily basis from JNB to Inhambane & Vilanculos.