Lufthansa Cargo
Contact info
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Frankfurt Airport
Gate 25
Building 451
Frankfurt
D-60546
Germany
Tel: +49 (69) 6969 1123
Fax: +49 (69) 6969 1185
lhcargo@dlh.de
www.lufthansa-cargo.com
Senior Management
| Chairman & CEO - Lufthansa Group | Christoph Franz |
| Chief Financial Officer - Lufthansa Group | Stephan Gemkow |
| Chairman & CEO - Lufthansa Cargo | Karl Urlich Garnadt |
| Finance & Human Resources - Lufthansa Cargo | Peter Gerber |
| Operations - Lufthansa Cargo | Karl-Rudolf Rupprecht |
Ownership
Brief Profile
Lufthansa Cargo is the Logistics division of the Lufthansa Group. As well as offering air freight services, Lufthansa Cargo provides additional logistics services including the arrangement of ground transportation for customers' air freight.
In addition to its own freighter services, the company manages the cargo capacity of its parent's passenger aircraft. It also has equity investments in a number of other airlines which it can transport cargo on.
Lufthansa Cargo operates from its main hub in Frankfurt, while Munich, Leipzig-Halle and Vienna are also important hubs. In 2011, Lufthansa Cargo reported revenues of €2.9bn while the Lufthansa Group recorded revenues of €28.7bn.
Strategy
Lufthansa Cargo 2020 Strategy
Lufthansa Cargo's 2020 strategy identifies six key points that are necessary for the company to achieve profitable growth in the years ahead:
Fleet Development: In 2011, Lufthansa Cargo ordered five new Boeing 777 freighters which were planned to be delivered between 2013 and 2015. The order would cover anticipated growth and their fuel efficiency would deliver cost advantages.
Modernisation of IT: Replacemnet of the old IT system to bring the new network up to industry standards.
Frankfurt Cargo Hub: The development of a new logistics centre in Frankfurt to replace Lufthansa Cargo's existing 30 year-old facility.
eCargo: The exchange of information between Lufthansa Cargo and customers would become inceasingly digitalised, reducing costs.
Quality/Lean Logistics: Lufthansa Cargo aimed to use more lean management methods. This philosophy had already been established at stations in Dusseldorf, Johannesburg and New York where productivity was increased substantially.
Cooperation: Lufthansa Cargo wanted to arrange more agreements with airline partners, giving the company access on strategically attractive traffic flows. Agreements would also extend the range of products on offer to customers.
Lufthansa Cargo CEO Karl Ulrich Garnadt summed up the 2020 strategy in a nutshell. "With the 'Lufthansa Cargo 2020' programme launched last year (2011), the company has clearly defined its long-term strategy, explained the Chairman. With orders for new Boeing 777 freighters, the upgrading of the IT platform, plans for a new logistics centre in Frankfurt to replace the existing 30 year-old facility as well as other long-term projects, the key markers are in place to ensure that the company remains industry leader also in 2020."
Financial Targets
In Lufthansa Cargo's 2011 results press release, Peter Gerber, Lufthansa Cargo Board Member Finance and Human Resources, pointed out some of Lufthansa Cargo's main financial targets in the short and medium term.
He declared that it was the company's aim to "raise earnings by a minimum of €70m euros yearly from 2015.
The company also revealed that for 2012, it expected its business to develop on a positive note, and was again anticipating an operating result in the region of three-digit millions. However, it also expected that it would not replicate the results attained in 2011.
Jade Cargo International Withdrawal
In March 2012, Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company. The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.
Frankfurt Airport Night-Flight Ban
Lufthansa Cargo CEO Karl-Ulrich Garnadt revealed that the ban imposed on night-flights at Frankfurt airport in cotober 2011 would alter the company's fleet development plans.
He said Lufthansa Cargo had planned to lease two more freighters for the coming summer schedule but had “axed” those plans. “If this scenario continues to go in the wrong direction, then we will start to replace some MD-11Fs with the first 777s instead of expanding our fleet."
Garnadt said that if the court reverses the ban, the carrier will “switch some important night flights back to Frankfurt from July.”
© 2012 Transport Intelligence
Lufthansa Cargo concentrates on its core competencies. Business activities which are not part of its core business and require smaller, flexible organisational structures are spun off into independent companies.
Lufthansa Cargo's strategy aims for growth in the major global centres of production and consumption and is based on collecting freight flows where they arise. In the growth market China, Lufthansa Cargo has a strong position thanks to its equity investments and joint ventures. The investments in Shanghai Pudong International Airport Cargo Terminal, the International Cargo Center Shenzhen, Tianjin Aircargo Terminal Ltd. and Jade Cargo International represent key pillars of the China strategy.
Lufthansa Cargo's strategy focuses also on profitable growth in every traffic region. The company derives almost 40% of its capacity from its MD-11 fleet.
© 2011 Transport Intelligence2012
April - Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways. The completion of the sale took place after close of business on April 19, 2012. The purchase price amounted to £172.5m (€207m).
As price adjustments were agreed as part of the transaction structure, the net purchase price would be determined at the end of the second quarter 2012, at which point the final amount would be transferred. It was expected that the net purchase price would be negative. However, the costs of the transaction for Lufthansa would amortise within one year. The gross purchase price was expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme was to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme would be offset to a large extent by a one-off contribution from Lufthansa of £84m to a supplementary pension scheme.
On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012. By carrying out the transaction, Lufthansa sold a consistently loss-making company.
March - Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company.
The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.
March - Lufthansa would most likely not buy the remaining 55% of Brussels Airlines this year, chairman and CEO Christoph Franz revealed.
Franz said, “Our strategic commitment is clear, but we are not in a hurry to exercise our call option. We still have another two years to do so. At this point of time the priority is on our bottom line.”
In September 2008, Lufthansa bought 45% of Brussels Airlines parent company, SN Airholding for €65m via a capital increase. As part of the agreement, Lufthansa has an option of acquiring the remaining 55% from 2011. The option could be exercised during three weeks in April.
Franz also confirmed that “if necessary we will offload more loss-making airlines in our portfolio. We started to offload loss-making carriers last year, with the sale of bmi to IAG, we closed Lufthansa Italia and withdrew from Jade Cargo.”
January - Lufthansa Cargo was considering replacing its fleet of 18 Boeing MD-11Fs and would decide by 2014 which aircraft to go with, according to chairman and CEO Karl-Ulrich Garnadt.
“We know we have to order more [Boeing] 777Fs and there is no other option,” Garnadt said. Lufthansa Cargo finalised an order for five 777 freighters valued at $1.35bn last spring.
January - Lufthansa Cargo revealed some of its expectations for the year ahead. CEO Karl-Ulrich Garnadt said that he expected no growth in 2012. "Currently we are 10% down compared to last year. The demand is much weaker,” he said.
The company's outlook was much more positive until last October, when it was announced that night flights would be banned at Frankfurt Airport. The ban removed 17 night-flights at the airport, 10 of which were Lufthansa Cargo's, costing the company €20m in profit in 2011. If the ban was contiually upheld in 2011, Lufthansa Cargo anticipated it would lose €40m in profit and a three digit figure in revenue.
Garnadt also remarked that the ban would alter the company's fleet development plans. He said Lufthansa Cargo had planned to lease two more freighters for the coming summer schedule but had “axed” those plans. “If this scenario continues to go in the wrong direction, then we will start to replace some MD-11Fs with the first 777s instead of expanding our fleet."
Garnadt said that if the court reverses the ban, the carrier will “switch some important night flights back to Frankfurt from July.” He said that 50% of Lufthansa Cargo's business was high-value express cargo.2011
September - Lufthansa's fleet modernisation was continued in with the ordering of
a further twelve aircraft (two Airbus A380s, one A330-300, four A320s, five Embraer 195s).
March - Lufthansa's Supervisory Board approved an order for 35 aircraft.
The order included 30 aircraft from the Airbus A320neo family and five Boeing 777 freighters. The passenger planes were planned to be delivered in 2016 and the freighters from as early as 2013.2009
September - Lufthansa was threatening to close its fleet of freighter aircraft if restrictions on night flights were imposed on its hub at Frankfurt. The CEO of Lufthansa Cargo was quoted commenting to Reuter's journalists just before the weekend that it might no longer pay to have its own cargo fleet. He was responding to a German court judgement on the service limitations around the expansion of Frankfurt airport. In order to calm opposition to the growth of the airport, politicians in the State of Hesse agreed to limit the number of night flights to just 17. Lufthansa challenged this condition, but the court rejected the airline's objection stating that the local politicians had the right to agree to such limitations.
The problem for Lufthansa cargo specifically was that it would receive few if any of the allotted 17 slots, with passenger services invariably being higher up the queue. This would severely curtail the viability of Lufthansa's freight hub at Frankfurt and therefore Lufthansa's freighter fleet.
Lufthansa had been unusual amongst major airlines in its commitment to cargo services but also in the degree of reliance it placed in cargo aircraft. Almost half of its capacity was in its fleet of 19 freighters with the rest in belly-freight. Therefore any move away from freighters would be a significant change in corporate strategy as well as having a sizeable impact on the air freight market. This suggested that its comments may in part be a threat designed to sway the politicians of Hesse as a much as a real assessment of Lufthansa's future fleet options.
It was unclear what implications any reduction in the freighter fleet would have on Lufthansa's other freight operations, such as AeroLogic, its joint venture with DHL which also operated its own aircraft but whose hub was based in Leipzig, in eastern Germany.Lufthansa Cargo is cautiously optimistic for 2010. It expects sales to improve as a result of slightly increased freight volumes and a further industry-wide recovery in freight rates. The volume is expected from Asia and, in particular, from China.
With "Lean Lufthansa Cargo 2010ff"* strategy, the company wants to use of 2010 and the following years to return profitable growth levels from before 2009 and to develop Lufthansa Cargo from as a leaner company. Following its new strategy, the company intends to:
- increase revenues by 20% and to reduce the unit costs by 10% per sold freight tonne km
- cut the material cost budgets in the administrative area by 20% in 2010, and in the operative areas by 10%
- reduce 10% in personnel and the administrative areas, as well as in the operative. The short-time working quota for the ground staff of Lufthansa Cargo in Germany was reduced from 25% to 20% as of 1 March 2010. As a result of signed agreements, Lufthansa Cargo can continue to flexibly adapt its personnel capacities to reductions in demand in the airfreight business due to the economic situation.
In 2010, Lufthansa Cargo will concentrate its project portfolio on operationally necessary projects. Overall, the company will continue its restrictive investment policy.
With the "Lean Lufthansa Cargo 2010ff", programme, Lufthansa Cargo expects to improve its operating result.
*ff - following
| Crisis management in 2009 and future orientation in 2010ff. |
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| Source: Lufthansa Cargo |
© 2010 Transport Intelligence
The strategy at Lufthansa Cargo remained based on growing in the major global growth markets and on collecting freight flows wherever they arise. The company continued to have a foothold in China with an equity investment in the Shanghai Pudong International Airport Cargo Terminal (PACTL).
In addition, the company was well positioned in the Pearl River Delta as it had a stake in the International Cargo Center Shenzhen (ICCS) as well as shares in the cargo airline Jade Cargo International which connects centres worldwide and is based in Shenzhen.
From the start of 2008 it also has operations in the Chinese region on the Yellow River Delta where it had another equity investment in the handling company Tianjin Airport Hua Yu Air Cargo Terminal Co. Ltd. (HYACT) at the emerging cargo hub in Tianjin.
This strategic involvement in China gave the company a good platform from which to benefit from future economic growth as well as service traffic flows from Asia to other regions.
Deutsche Lufthansa AG's cargo unit planned to build its own freight alliance combining its Chinese unit Jade Cargo and Swiss World Cargo with Aerologic, which it owned along with Deutsche Post AG. The new group, which was expected to be ready for operation in 2010, would have 36 airfreight planes and the use of freight space in 400 passenger planes.
Lufthansa Cargo wanted to grow asset-light so the joint foundation of a new cargo airline with the Deutsche Post World Net subsidiary DHL Express fitted into this approach.
In October 2007, Lufthansa Cargo moved its freighter traffic from Cologne to Leipzig, where DHL Express had set up its European express hub.
The new company AeroLogic was set to commence operations from Leipzig in 2009, deploying 11 new Boeing B777-200LRF cargo aircraft. This joint venture strengthened Lufthansa Cargo's position in the increasing competition between cargo companies and also with respect to integrators such as FedEx and UPS.
© 2008 Transport Intelligence
Lufthansa Cargo's aim is to generate average annual growth of five per cent in the next few years by expanding its partnerships and taking advantage of any expansion in the airfreight market. Lufthansa Cargo's focus is on the Asian growth markets, first and foremost China and India. The company had several aims for 2007:
- Do its utmost to bring about a practicable nightflight ruling at Frankfurt Airport.
- Focus on standard cargo/BUPs (Bulk Unitization Programme), and express freight.
- Continue modernisation of buildings and technologies at the Frankfurt location and work on improving infrastructure.
- Increase the presence of Lufthansa Cargo at Frankfurt Airport's CargoCity Süd.
- On the international front, intensify partnerships.
In the 2007 financial year, Lufthansa Cargo anticipated an operating profit well in excess of earnings in 2006 which were depressed by non-recurring items. Operating earnings are to be boosted yet further at this higher level in 2008.
© 2007 Transport Intelligence
Strategic History
During the past decade Lufthansa has been transformed from a functionally structured monolithic airline company into an aviation group with several business segments.
| Lufthansa Portfolio Management |
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| Source: Lufthansa |
The Passenger Transportation Business segment is the Group's central business segment in terms of both core competencies and size. The relevance of the other business segments depends on the extent to which they reinforce the competitiveness of the passenger business by providing supportive functions for essential production factors and infrastructures. This determines the course of development and their lasting affiliation to the Group.
| Focus on Passenger Business |
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| Source: Lufthansa |
Lufthansa Cargo has focused its products and processes on the needs of the shippers and they have worked to reduce the complexity of the offer with fewer products, fewer product and process options and quick and easy to use booking systems.
The premium products have been expanded to include the fast-growing standard segment and the share of load units pre-constructed by the shipper has been increased considerably. This allows cost reductions with sustained increases in production quality.
As Europe's largest cargo airport, Frankfurt is to be expanded and developed further and Lufthansa Cargo still assumes practicable night-flight regulations for Frankfurt airport.
The freight company responded to the structural changes in the airfreight industry with a strategy entitled "Excellence + Growth" launched in early 2004. As a result extensive activities have been initiated, in particular the re-alignment of the company as a process-oriented organisation with pronounced customer orientation. Within the framework of "Excellence + Growth", administration and management have been reduced. By the end of 2005, around 400 jobs had been cut.
The focus lies on cost reductions when purchasing services and on network optimisation, sales growth, improving revenues and pay settlements.
Customers
During 2005 Nippon Express Co. Ltd became a new member of the Lufthansa Cargo Global Programme. Twelve worldwide active shippers belong to this customer loyalty programme with which Lufthansa cargo conducts around 45% of its business.
The companies included: ABX, DHL Global Forwarding, EGL, DHL Exel Supply Chain, Geologistics, Hellmann, Kuhne + Nagel, Nippon Express, Panalpina, Schenker, UPS, UTI.
The focus of this group is on growing together in the market, creating synergies in sales, reducing transaction costs and pushing important subjects such as automation of business processes.
© 2005 Transport Intelligence
Finances
2011
Lufthansa Cargo described the year as being "dynamic", with its freight markets split between growing German and America markets and "cooling" demand in China and India. In the year, Lufthansa Cargo increasingly switched capacities from Asia to North America. Revenue was up 5.3% at €2,943m, however profits were down sharply with EBIT (Earnings Before Interest and Tax) 25.6% lower at €244m.
Profits were also depressed by higher fuel costs, as its operating result fell from €310m to €249. Although this does represent a sharp fall in profits, 2010 represented a record high and margins remained strong in 2011 at over 9%.
In addition, operations were impacted by a temporary night flight ban which was imposed in October 2011, at Frankfurt Airport, which Lufthansa Cargo said had cost the company €20m in profit. “There is a real danger of Frankfurt losing its position as the best and most attractive air freight hub in Europe,” emphasised Karl Ulrich Garnadt, CEO of Lufthansa Cargo. The company estimated that a permanent night-flight ban would deprive Lufthansa Cargo alone of major express connections and cost the company €40m in profit in 2012, and a three-digit million euro number in turnover.
Around 50% of Lufthansa Cargo's business was high-value express cargo.
2010
Lufthansa Cargo recorded an operating result of €310m for 2010. This corresponds to an increase of €481m compared with the previous year (2009: minus €171m). The operating margin rose as a result by 19.9 percentage points to 11.1%.
Revenue went up by 43.2% to €2.8bn (2009: €2.0bn).
The traffic revenue included in total revenue rose by 42.4% to €2.6bn (2009: €1.9bn). Charter revenue, a component of traffic revenue, fell by 54.3% to €71m. This was due to the charter partnership with DHL Express coming to an end and transports shifting to the joint venture AeroLogic in mid 2009.
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| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||
| Revenues | 2165.40 m | 2468.50 m | 2752.50 m | 2844.90 m | 2736.10 m | 2907.00 m | 1951.00 m | 2794.90 m | 2943.00 m | ||
| Operating Profit | 36.00 m | 52.00 m | 108.00 m | 81.50 m | 135.60 m | 164.00 m | -171.00 m | 310.10 m | 249.00 m | ||
| Margin | 1.66 % | 2.11 % | 3.92 % | 2.88 % | 4.96 % | 5.64 % | -8.76 % | 11.10 % | 8.46 % | ||
| Export to Excel Source: Lufthansa Cargo, Last update: 24/04/2012 | |||||||||||
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| Source: Lufthansa Cargo |
2011
Revenue from Europe reached €245m, a increase of €30m year on year.
While revenue from the Americas rose by 22.7% to €1,087m, revenue from the Asia Pacific region declined by 4.6% to €1,267. This was unsurprising as in the year, Lufthansa increasingly switched capacities from Asia to North America, on account of "cooling" demand in China and India and growing demand in American markets.
Revenue from the Africa/Middle East region was up by €13m to €218m.
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| 2010 | 2011 | |||
| Europe | 215.00 m | 245.00 m | ||
| Americas | 886.00 m | 1087.00 m | ||
| Asia Pacific | 1328.00 m | 1267.00 m | ||
| Africa/Middle East | 205.00 m | 218.00 m | ||
| Export to Excel Source: Lufthansa Cargo, Last update: 24/04/2012 | ||||
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| Source: Lufthansa Cargo |
Note: Exchange rates are as follows:
- 2004 €1=1.21
- 2005-2006 €1=$1.4554
- 2007 €1=$1.3633
- 2008 €1=$1.3845
- 2009 €1=$1.3626
- 2010 €1=$1.41624
- 2011 €1=$1.3924
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| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||
| Revenue | 2986.89 m | 4005.99 m | 4140.47 m | 3730.13 m | 4024.74 m | 2658.43 m | 3958.25 m | 4097.83 m | ||
| Volume | 7961.00 RTKm | 7829.00 RTKm | 8103.00 RTKm | 8451.00 RTKm | 8283.00 RTKm | 7425.00 RTKm | 8905.00 RTKm | 9487.00 RTKm | ||
| Export to Excel Source: Lufthansa, Last update: 20/03/2012 | ||||||||||
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| Source: Lufthansa |
2011
Group revenues increased 8.6% to €28.73bn in 2011 from the 2010 restated figure of €26.5bn. Passenger transportation contributed 69.2% of the total revenue, while Lufthansa Cargo contributed 9.1%. The two divisions saw the most significant revenue increases across the company as passenger and cargo transport revenues increased by 6.6% and 5.3% respectively.
2010
The Group's external revenue increased in total by 22.6% to €27.3bn*. The Passenger Airline Group's share of total revenue went up to 74.0%, largely due to the better course of business and changes in the group of consolidated companies. While the revenue share of the Logistics segment rose to 10.1%, the other segments' shares fell accordingly.
Note: 2010 revenue figure restated to €26.46bn.
2008 figures restated from:
- revenue: €24,870m
- operating profit: €1,354m
- margin: 5.44%.
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| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||
| Revenue | 15957.00 m | 16965.00 m | 18065.00 m | 19849.00 m | 22420.00 m | 24842.00 m | 22283.00 m | 26459.00 m | 28734.00 m | ||
| Operating Profit | 36.00 m | 383.00 m | 577.00 m | 845.00 m | 1378.00 m | 1280.00 m | 130.00 m | 1386.00 m | 773.00 m | ||
| Margin | 0.23 % | 2.26 % | 3.19 % | 4.25 % | 6.14 % | 5.15 % | 0.58 % | 5.24 % | 2.69 % | ||
| Export to Excel Source: Lufthansa, Last update: 24/04/2012 | |||||||||||
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| Source: Lufthansa |
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| 2008 | 2009 | 2010 | 2011 | |||
| Passenger Transportation | 18393.00 m | 16798.00 m | 20912.00 m | 22290.00 m | ||
| Logistics (Lufthansa Cargo) | 2907.00 m | 1951.00 m | 2795.00 m | 2943.00 m | ||
| MRO | 3717.00 m | 3963.00 m | 4018.00 m | 4093.00 m | ||
| Catering | 2325.00 m | 2102.00 m | 2249.00 m | 2299.00 m | ||
| IT Services | 657.00 m | 605.00 m | 595.00 m | 599.00 m | ||
| Export to Excel Source: Lufthansa, Last update: 20/03/2012 | ||||||
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| Source: Lufthansa |
2009
Total
In 2009, Lufthansa Cargo achieved an operating result of minus €171m. This represented a decline of €335m in 2009 compared to the previous year (2008: €164m). As a consequence, the comparable operating margin decreased by 14.2 percentage points to minus 8%.
Revenues declined by 32.9% to €2.0bn (2008: €2.9bn). Traffic revenues contained in the sales revenues dropped by 33.2% to €1.9bn (2008: €2.8bn). Charter revenues as a component of traffic revenues dropped by 56.0% to €155.1m. The cause of this was the termination of the charter cooperation with DHL and the shift of the transport to the joint venture AeroLogic.
2008
Total
Lufthansa Cargo was able to improve its operating result. In 2008 it achieved an operating result of €164m, an increase of €28m. The comparable operating margin increased by 0.5 percentage points to 6.2%.
Sales revenues increased by 6.3% to €2.9bn (2007: €2.74bn). Traffic revenues once again accounted for the largest part of this figure in 2008, increasing by 6.7% to €2.8bn. Charter revenues, part of the sales revenues, increased by €37.8m to €352.1m, largely resulting from the cooperation with DHL.
2007
Total
In March 2008 one of the market's leading players, Lufthansa Cargo, still appeared optimistic about its own prospects, despite recent suggestions in some quarters of tougher times to come in 2008 for the international air cargo industry.
During a briefing held in Frankfurt, Germany, to discuss what the German carrier claimed were its generally strong 2007 operating results, senior executives suggested that Lufthansa Cargo was expecting to continue that "positive trend" in 2008. "In fiscal 2008, Lufthansa Cargo expects to build on the good operating results which it returned in 2007."
On the financial side, those "good operating" results for 2007 included a 66% jump in the organisation's operating profit, compared with the previous year, to €135.6m, even though revenue dropped by just under 4% to €2.74bn.
Traffic-wise, Lufthansa Cargo transported 1.8m tonnes of freight and mail in 2007, an increase of 2.6% on the previous year. The carrier's overall cargo load factor was up by 1.4 percentage points to 69.1%.
However, Lufthansa Cargo's senior management also referred, directly or indirectly, to a range of problems confronting the industry. Inevitably, there was mention of "uncertainty in the international finance markets and high oil prices". They also admitted that Asia's share in total traffic revenue was down "owing to declining yields".
One key element of Lufthansa Cargo's approach to dealing with such problems had been strict cost control - the workforce was trimmed again in 2007 and major efforts had been made to improve the fuel use efficiency of its 19 MD11 freighters.
Another was its strategy of combining capacity from several companies under one roof, including that of its own freighter operations, the bellyhold space on the 400 aircraft of parent passenger airline Lufthansa, Sino-German joint all-cargo carrier Jade Cargo International and the recently-formed AeroLogic joint venture (with DHL Express) cargo carrier. Such a set-up, claimed Lufthansa Cargo, provided the organisation with great flexibility when it came to matching capacity with demand.
The big question, of course, was if the general air freight market did suffer the sort of slowdown recently suggested by the International Air Transport Association for example, would such strategies be sufficient to enable Lufthansa Cargo to buck the trend?
2006
Total
In March 2007 Lufthansa Cargo reported that in 2006 revenue increased 3.4% to €2.8bn and traffic revenue by 3.6% to €2.7bn. Adjusted for exchange rate effects, revenue growth was 3.8% due mainly to positive volume trends. Average yields were down slightly on the year (-0.4%).
Other operating income was unchanged at €131m and included book gains of €29m from the sale of shares in time:matters GmbH.
Lufthansa Cargo was able to increase its cargo business by 1.3% to 1.76m tonnes of freight and mail. Sales rose by 3.5% to 8.1bn tonne-km. The cargo load factor improved by 2.7 percentage points.
2005
Total
In the 2005 financial year the Logistics segment (Lufthansa Cargo) was able to implement higher prices and thus stabilise average revenues. Revenues also increased due to fuel price surcharges that rose by 10.8%. As a result the logistics group increased traffic revenue by 10.2% at €2.6bn. Sales increased from €2.5bn to €2.8bn (+11.5%). Revenue from partial chartering to other airlines also grew to $54.6m. Together with other segment income of €144m, total segment income grew to €2.9bn.
Segment costs grew disproportionately and increased by 6.9% to €2.7bn. Due to the extreme fuel price increases, material costs grew by 11.3% to €1.8bn. Charter costs also rose considerably because of the additional charter requirements for the DHL J/V.
Lufthansa Cargo also posted operating results of €108m which was a €74m improvement year on year. The measures for minimising costs in their "Excellence + Growth" strategy were critical to this result. The segment result of €152m was also considerably better than the previous year when only €59m was achieved.
2004
Total
In April 2005, Lufthansa Cargo reported an operating profit of €33.5m for its 2004 financial year, an improvement of €50m on 2003 when it made an operating loss of €16m. Turnover grew strongly by 14% to €2.47bn, tonnage rose 10.7% to 1.75m tonnes of cargo and mail, and volumes increased 12.3% to 7,961 freight tonne kilometres (FTKs). The cargo load factor also improved by 1.4 percentage points to 67%. Growth was driven by the recovering world economy, the DHL intercontinental joint venture launched last spring, the takeover of US Airways' freight capacity on ex-Europe flights, rising sales through the WOW alliance network and new cargo management contracts for several regional passenger airlines. But profits were hit by a 36% rise in fuel costs to €332m and the continued rise in the euro, in which the airline has 40% of its revenues but 62% of its costs. Moreover, average yields dropped as much as 10%.
For 2005, Lufthansa Cargo chairman Jean-Peter Jansen said growth would be lower than in 2004 due to the slow German air cargo market, rising fuel costs, the high euro exchange rate and continuing pressure on yields because of imbalanced traffic flows. CFO Stephan Gemkow said the airline hoped for improved profits and noted yields had been stabilised in recent months. The airline would focus this year on further revenue improvement and cost reduction measures under its Excellence + Growth programme that was designed to contribute €233m to the bottom line by the end of 2006. This included reducing staff levels by the equivalent of 480 full-time jobs by the end of 2006.
On plans for cargo cooperation with Swiss Worldcargo as part of the Swiss acquisition by Deutsche Lufthansa, Jansen said the two sides would seek the highest possible level of synergies but did not disclose any firm plans. The much smaller Swiss Worldcargo generated revenues of CHF442m in 2004. It transported 208,165 tonnes, generated traffic volume of about 1.14bn FTKs and achieved a load factor of 86.3%. In addition to marketing bellyhold capacity on Swiss passenger aircraft, it offers freighter capacity in cooperation with several international airlines, including Korean Air Cargo. Based on 2003 world air cargo market share figures, Lufthansa Cargo (7%) and Swiss Worldcargo (1.3%) would jointly still remain behind the Air France-KLM group, the new international air cargo market leader with a combined market share of about 8.8%.
Lufthansa Cargo also announced that the new Chinese airline Jade Cargo International, in which it owns 25%, would launch scheduled flights within China and to Asian destinations from its Shenzhen base this autumn with three freighter aircraft. The freighter type had not yet been decided. The planned launch in spring 2005 with charter flights had to be delayed due to changes to Chinese aviation laws.2009
Total
Lufthansa's revenues declined by €2.56bn and posted an operating profit of €130m. The group earned about €1.2bn less than during the previous year. The past year's figures were burdened by economy-related weaker demand and the disproportionate decline in average yields in the passenger business segment, both consequences of the financial and economic crisis.
2008
Total
In March 2009 the Lufthansa Group announced that it had generated revenues totalling €24.9bn, a year-on-year increase of 10.9%. The traffic revenue rose by 13.8% to €20bn. Besides the full consolidation of SWISS in the first half of 2008, this was mainly due to the increased passenger figures with currency adjusted higher average revenues in the Passenger Transportation business segment. During the reporting period, the Group's operating income increased by altogether 12.1% to €27bn.
Operating expenses rose to €25.6bn during the past year, mainly as a result of the rise in fuel costs to €5.4bn. This was equivalent to an increase of 39.3%. This increase was due to price and quantity-related factors, as well as the change in the scope of consolidation with the full consolidation of SWISS in the first half of 2008.
The Group recorded an operating result of €1.35bn in 2008, €24m less in comparison with the record figure in 2007. The decline can mainly be attributed to the negative developments in the Passenger Transportation business segment. The Group posted a result of €599m. Last year this figure was at €1.7bn, however, it included €503m of profit from the sale of the shares in Thomas Cook, as well as book gains of €82m from the repurchase of own stock by WAM Acquisition S.A.
Lufthansa's capital expenditure during the reporting period totalled €2.2bn, of which €1.3bn were spent on the expansion and modernisation of the fleet and €214m were spent on the acquisition of a minority stake in the JetBlue Airways Corporation on 22 January 2008. Operating cash flow totalled €2.5bn.
2007
Total
In March 2008 the Lufthansa Group reported revenues for 2007 €22.4bn representing growth of 13%. Traffic revenue increased by 14.4% to €17.6bn. As of the third quarter of 2007, the figures also included the first time consolidation in the Group accounts of SWISS International Air Lines for the July to December period.
Lufthansa posted an operating result of €1.4bn for 2007. This represented an increase of 63.1%. The increase by two percentage points in comparison with the previous year reflects the good performance in all the business segments.
The Group posted book gains of about €503m from the sale of its shares in Thomas Cook AG. The Group result consequently rose to €1.7bn (€803m).
Lufthansa invested a total of €1.4bn in 2007, of which more than €1.1bn were invested in the purchase of new aircraft.
2006
Total
In March 2007 the Lufthansa Group reported revenues of €19.8bn in 2006, representing growth of 9.9%. Traffic revenue increased by 10.4% to €15.4bn. There was a significant rise in the average yields during the reporting period. An increase of 5.2% was registered across the board for all traffic segments.
Other operating income dropped by 9.4% to €1.4bn, in comparison to last year, when higher book gains of around €245m were included, mainly due to the sale of shares in Amadeus and Loyalty Partner.
Operating expenses rose by 6.9% to €20.3bn with the significantly higher cost of kerosene again a major cost factor. A total of €3.4bn was spent on fuel during the reporting period, equivalent to a year-on-year rise of 26% or €693m.
The Lufthansa Group improved its operating profit for 2006 by 46.4% to €845m and the Group result after tax rose by 77.3% to a new record level of €803m. Investments increased to €1.9bn and, as during the previous years, could once again be financed entirely from cash flow.
2005
Total
In March 2006 Lufthansa, Europe's second-largest airline, reported that operating profit was €577m in calendar year 2005, up 51% from €383m the previous year.
The German carrier credited strong passenger growth in Asia and a doubling of cargo earnings that outweighed soaring fuel prices. It expects this year's profit to match or exceed 2005 results.
Operations
Lufthansa Cargo is the service provider for the logistics business in the Lufthansa Group. Its operating hubs are located in Frankfurt, Munich, Leipzig-Halle and Vienna and it serves a global network of 300 destinations worldwide.
The company has 18 Boeing MD-11 freighters of its own, each with a maximum capacity of 534 cu m. This is supplemented by the freight capacities of the Lufthansa and Austrian Airlines passenger fleets as well as the equity investment AeroLogic.
The shareholders of AeroLogic GmbH are Lufthansa Cargo and DHL Express, which each hold
50%. The two companies are the sole users of the capacities of the eight Boeing 777F freighters, with Lufthansa Cargo mostly using capacity at weekends.
The freight capacities of Lufthansa subsidiary SWISS and stake Brussels Airlines are not marketed directly by Lufthansa Cargo, but the group nevertheless enjoys a close partnership with the
freight divisions of these airlines.
Lufthansa Cargo also has further airline cooperation agreements with SAS Cargo, Singapore Airlines Cargo, Japan Airlines Cargo, Air China Cargo, Eva Air Cargo, Lan Cargo and South African Airways Cargo.
The composition of Lufthansa's logistics capacity is around 50% freight on passenger aircraft, 40% on Lufthansa Cargo freighters, and around 10% on chartered freighters or on aircraft belonging to joint ventures.
| Overview | ||||
| Destinations | 300 | |||
| Countries | 100 | |||
| Fleet Size | 18 MD-11 freighters, freight capacities of Lufthansa and Austrian Airlines passenger fleets, and fleet of AeroLogic. | |||
| Operating Hubs | Frankfurt, Munich, Leipzig-Halle, Vienna | |||
| Source: Lufthansa | ||||
| Destinations |
![]() |
| Source: Lufthansa Cargo |
2011
Lufthansa Cargo volumes reached 9,487 RFTKs, a rise of 582 RFTKs or 6.5%. The amount of available space on flights also increased to 13,647 AFTKs, a rise of 1,083 RFTKs or 8.6%. As the amount of available space rose proportionally faster than the amount transported, the cargo load factor fell by 1.4 percentage points
2010
Available transport volumes rose by 7.6% to 12,564m tonne-km in 2010, while sales increased by 19.9% to 8,905m tonne-km. This led to a cargo load factor of 70.9% in the 2010 financial year (2009: 63.6%, +7.3 pp). The transported volumes of freight and mail went up by 18.2% last year to 1.80m tonnes (2009: 1.52m tonnes).
Note: A Revenue Freight Tonne Kilometre (RFTK) denotes one tonne of cargo transported one kilometre.
|
||||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | 2010 | 2011 | |||
| Revenue Freight Tonne Kilometres | 8283.00 m | 7425.00 m | 8905.00 m | 9487.00 m | ||
| Available Freight Tonne Kilometres | 11681.00 m | 12584.00 m | 12564.00 m | 13647.00 m | ||
| Load Factor | 65.80 % | 63.60 % | 70.90 % | 69.50 % | ||
| Export to Excel Source: Lufthansa, Last update: 25/04/2012 | ||||||
|
|
| Source: Lufthansa |
|
|||||||
|---|---|---|---|---|---|---|---|
| 2007 | 2008 | 2009 | 2010 | 2011 | |||
| Americas | 3407.00 m | 3398.00 m | 2296.00 m | 3676.00 m | 4035.00 m | ||
| Asia Pacific | 3951.00 m | 3808.00 m | 3369.00 m | 4169.00 m | 4327.00 m | ||
| Africa/Middle East | 579.00 m | 622.00 m | 645.00 m | 693.00 m | 743.00 m | ||
| Europe | 515.00 m | 455.00 m | 415.00 m | 368.00 m | 381.00 m | ||
| Export to Excel Source: Lufthansa, Last update: 23/04/2012 | |||||||
|
|
| Source: Lufthansa |
2011
Lufthansa transported 1.89m tonnes of cargo and mail in the year, a rise of around 90,000 tonnes or 5.0%.
|
||||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | 2010 | 2011 | |||
| Cargo and Mail (Tonnes) | 1.70 m | 1.52 m | 1.80 m | 1.89 m | ||
| Export to Excel Source: Lufthansa, Last update: 24/04/2012 | ||||||
|
|
| Source: Lufthansa |
|
|||||||
|---|---|---|---|---|---|---|---|
| 2006 | 2007 | 2008 | 2009 | 2010 | |||
| America | 463000.00 | 501000.00 | 483000.00 | 420000.00 | 525000.00 | ||
| Asia Pacific | 461000.00 | 477000.00 | 465000.00 | 418000.00 | 515000.00 | ||
| Africa/Middle East | 108.00 | 103.00 | 114000.00 | 125000.00 | 139000.00 | ||
| Europe | 727.00 | 724.00 | 634000.00 | 556000.00 | 616000.00 | ||
| Export to Excel Source: Lufthansa, Last update: 25/04/2012 | |||||||
|
|
| Source: Lufthansa |
2012
April - A German court in Leipzig upheld a night-flight ban at Frankfurt Airport between 11 p.m. and 5 a.m. local time.
The ruling came after a Hessen court ruled in October 2011 that 17 night-flights would be banned when FRA’s fourth runway opened in the same month following resident complaints of aircraft noise from nearby Russelsheim and Offenbach. Lufthansa Cargo operated 10 of those scheduled nighttime slots.
March - Lufthansa Cargo offered a new worldwide express service for urgent shipments. The new "Courier. Solutions" service provided the fastest transit and shortest delivery times in the Lufthansa Cargo. The company announced that the service had has no weight limits.
Lufthansa Cargo was offering this new product in cooperation with time:matters, a Lufthansa Cargo Group company that specialised in express logistics services. Customers could drop off their shipment at Frankfurt Airport up to 90 minutes before departure. At various other airports, the minimum drop-off time was one hour before departure. At Frankfurt, the transit time was 60 minutes, while the transfer time at Munich was 50 minutes.
The Vice President Product Management at Lufthansa Cargo said "with the shortest handling times, personal courier accompaniment during transit and round-the-clock, proactive shipment surveillance we can offer the speediest assistance when trade fair items or medicines, for example, are urgently needed on the other side of the world."
March - Lufthansa Cargo announced it was adding a route to Chongqing, China when its summer flight schedule began on March 25. The company was offering flights to 303 destinations in 99 countries.
Chongqing would be served with four flights weekly, operated by Lufthansa Cargo's MD-11 freighters. Other newcomers in the timetable - also thanks to the expansion of the network of Lufthansa passenger services - were Shenyang in northeastern China and Qingdao (Tsingtao) in Shandong province.
Flights to Detroit, US were to be increased to twice-weekly connections. Services to Detroit commenced initially in January with a once-weekly flight in the Lufthansa Cargo freighter network.
In South America, the company was adding twice-weekly MD-11 flights from Frankfurt to Montevideo, Uruguay.
Back in the timetable was Kolkata, India. Flights were operated to the Indian city last summer, but were discontinued in recent months. Once-weekly direct flights from Frankfurt were now available again in the summer flight schedules.
"We have selectively extended our route network and brought new and attractive growth markets into the timetable," noted a Lufthansa Board Member for Product and Sales. "We are expanding our presence in China, the world's biggest air freight market, and now laying on freighter connections to a total of six Chinese destinations."
January - Lufthansa Cargo announced that it had started operating its first ever flights between Frankfurt and Detroit, Michigan (US). The route connects Germany with the centre of the US automotive industry every Monday (after the beginning of the summer schedule: each Sunday) by an MD–11 freighter in the cargo carrier's fleet. The subsequent return flight would stop off in New York on the way back to Frankfurt.
"The new freighter connection supplements the daily flights operated by Lufthansa passenger aircraft, and offers our customers more capacity and greater flexibility," said Achim Martinka, Lufthansa Cargo Vice President The Americas. "The automotive and pharmaceuticals industries, especially, are fuelling the growing demand for fast and reliable transports to and from Detroit."
Starting in March, Lufthansa Cargo planned to expand its Detroit operations to twice per week. This new connection was the seventh destination served by the cargo airline's freighter network in the US. Along with the services operated by the Lufthansa passenger business, direct flights were now available to 17 airports in the US.
January - Lufthansa Cargo boosted tonnage to record levels in 2011. The cargo airline carried approximately 1.9m tonnes of freight and mail in 2011, an increase of 5% compared to 2010.
The airline raised capacity over the twelve months by 8.6%. The company attributed the increase was to the integration, since the second half of 2010, of the capacities of aircraft in the fleet of Austrian Airlines and the expansion to eight Boeing 777 freighters in the fleet of the AeroLogic joint venture. In an increasingly difficult market environment, Lufthansa Cargo lifted sales of revenue freight-tonne km by 6.5%, so that capacity utilisation reached 69.5%; a slight decline from 70.9% in 2010.
"Especially in our German home market, we made full use of strong export demand to gain market shares. On the other hand, the economic climate in the important Asian airfreight market became increasingly bleak over the course of the year and led to over-capacities and increased competition for all airlines in the airfreight industry," observed the Lufthansa Cargo CEO and Chairman.
"Lufthansa Cargo is excellently positioned in all growth markets. We will stay on our successful course and adjust our capacities flexibly in line with demand," commented Garnadt. Of crucial importance for the company's future, however, is the impending ruling by the highest Federal Administrative Court in Leipzig on the number of permissible night flights in Frankfurt. "Germany profits from a strong and successful airfreight industry, which must not be decoupled for several hours, daily, from global trade flows. A night-flight ban would deal a severe blow to the entire industry and threaten thousands of jobs in Germany, not only in the logistics industry" he concluded.2011
December - Lufthansa Cargo begun operations at its new facility for temperature-sensitive freight in Frankfurt, Germany. The Lufthansa Cargo Cool Centre was built in the space of just six months.
The facility was equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 sq m. From now on, all temperature-controlled shipments carried by the airline in Frankfurt would pass through the new facility.
The Board Member Product and Sales, said: "Our Cool/td product is assuming ever-increasing importance for Lufthansa Cargo thanks to growth rates of 15%. The Lufthansa Cargo Cool Center will enable us to ship temperature-controlled freight faster, more reliably and more efficiently at our Frankfurt hub, and further expand our position as a leading provider of cool transports."
Lufthansa Cargo earmarked substantial capital expenditure last year in the Cool/td product. Besides investing in the development of the Opticooler, the industry's most efficient cooling container, the cargo carrier commenced operations at its first international pharmaceutical hub at Hyderabad in India.
October - Lufthansa Cargo underlined its fears regarding the consequences ensuing for the international logistics industry from the provisional night-flight ban placed upon Frankfurt Airport from October 30, 2011 by a regional court.
Following the ruling from the administrative court in Hesse, issued a few days before the introduction of Lufthansa's winter flight schedules, the company had put together an emergency timetable for the period after October 30. A number of flights had had to be relocated to daytime slots or to the early and late hours of the day.
Individual connections – to China, for example – had been cancelled entirely. Other flights bound for China would have to stop over at Cologne/Bonn Airport for several hours after an evening departure from Frankfurt so as to fly on, as originally planned, at night-time in the direction of the Far East. "We will be operating in future with unnecessary take-offs and landings, which will lead to more noise, higher fuel consumption and more costs running into millions," commented Lufthansa Cargo Chairman.
Furthermore from January, at least one MD-11 freighter was to be transferred from Frankfurt to Cologne/Bonn Airport. The freighter would operate the overnight flights for the German logistics industry to North America, which could no longer be guaranteed from Frankfurt because of the night-flight ban.
Lufthansa Cargo believed the provisional night-flight ban in Frankfurt was a drastic signal for the German logistics industry. He emphasised: "As export world champion, Germany is reliant on dependable connections to ship air freight to destinations around the globe. Frankfurt Airport plays in that respect a highly important role, since around 40% of German exports is transported by air."
The company said that it was hoping that the Federal Administrative Court in Leipzig (the supreme court of appeal) would allow a minimum of necessary night flights in its final ruling.
October - The fourth runway at Frankfurt airport was opened, yet what Frankfurt’s owners and customers had hoped to be a useful improvement to capacity had ballooned into a major crisis for the airport’s cargo operations. At 2.8 km the new runway would be shorter than the existing facilities and was designed to serve smaller short-haul traffic. Part of the 'Expansion 2020 program', it was the first major part of a development that would also see a new terminal and new cargo handling facilities by 2016. The taxi-ways to the new runways would also include a bridge over the neighbouring motorway and another over a high-speed railway.
In order to get this programme past protesting local residents and environmental pressure groups, Fraport, the airport's owner, agreed to certain conditions including greater restrictions on night-flights. The residents and pressure groups who continued to dispute the airport expansion had now won a court order banning all night-flights from Frankfurt citing this agreement. The court judgement enacting a ban, which was issued on the 11th October was temporary until the case could be concluded in a higher court in 2012. In the meantime all flights between 23.00 and 05.00hrs would be prohibited from the 30thOctober.
The immediacy of this decision had dealt a blow to Lufthansa Cargo in particular. It had been forced to adopt emergency winter schedules including scrapping two flights a week to China and even flying freighters to neighbouring, less regulated German airports during the day in order for them to take off for their final destinations during the night. Such had been the disruption that Lufthansa's CEO had even suggested that the new runway should not be opened, circumventing the ban on night flights.
It was unclear what effect this ban would have on air cargo traffic in Europe. Frankfurt was Europe's largest air cargo hub, although belly freight operations would be affected less as there was no restriction on day-time flights. Presumably it would be the freighters and particularly those operating to China and Central Asia that would be affected most. This was all the more painful for Lufthansa as this was a route which they had made particular efforts on. There would be those who benefit from what was likely to be a major – if presumably temporary – restructuring of air freight logistics in Europe. Neighbouring airports in France, the Netherlands but also possibly the new Leipzig-Halle facility which was home to the AeroLogic Lufthansa - DHL joint venture, could see more business. Of even greater threat was the ability of Dubai and the smaller Gulf airports to jump in and grab some trans-shipment business from Frankfurt.
October - Lufthansa Cargo resumed MD-11 freighter to Singapore.
On Tuesdays, the MD-11 freighters would stop off in Mumbai before flying on to Singapore. On the return flight to Frankfurt, they would call at Dhaka in Bangladesh and again in India - this time in Delhi. On Fridays, the flight from Frankfurt stops off in Cairo, Egypt, and in Sharjah, the United Arab Emirates. On Sunday, the way leads back over Dhaka and Delhi to Frankfurt.
September - Lufthansa's fleet modernisation was continued in with the ordering of
a further twelve aircraft (two Airbus A380s, one A330-300, four A320s, five Embraer 195s).
July - Lufthansa Cargo announced a tonnage increase of 14.8% in the first six months of 2011.
Capacity was up appreciably year on year. Overall, Lufthansa Cargo raised capacity by 19.7%. The increase was, among others, attributable to reactivation of freighters grounded temporarily in the crisis, expansion of the AeroLogic fleet to a total of eight aircraft and the carrier's marketing since July 1, 2010 of the freight capacities at Austrian Airlines.
Almost all the substantially increased capacity was sold in the market so that the load factor ended the first half at 69.1%. Growth was particularly pronounced in the Americas, where tonnage climbed by 19.5%.
"Lufthansa Cargo has harnessed the robust development of the global economy and sustained the growth momentum from the previous year," said the Lufthansa Cargo Chairman and CEO. "We have made our network even more attractive with the addition of new desti-nations and invested to good purpose in the ongoing development of our products. We posted gains especially in the special services we offer customers to meet their specific needs."
June - Lufthansa Cargo began operating twice weekly MD-11 freighter flights (Thursday and Saturday) to Houston, USA from its hub in Frankfurt, Germany.
April - Lufthansa Cargo was expanding its route network in Asia and offering its customers a new service to Bangladesh; connecting Frankfurt with once-weekly flights to Dhaka. The flights to the capital of Bangladesh, on Wednesdays, would be operated by a Lufthansa Cargo MD-11 freighter.
"Bangladesh has assumed growing importance as a production base for the international fashion industry. Our direct flights to and from Dhaka will shorten the transport time for customers and link them into Lufthansa Cargo's global network," noted the Regional Director South Asia and Middle East of Lufthansa Cargo.
The flight would leave Frankfurt on Wednesdays at 0140 hours, arriving in Dhaka at 1910 hours after a stopover in Mumbai. The return flight from Dhaka would leave on Wednesdays at 2215 hours and was scheduled to land in Frankfurt at 0600 hours on Thursdays after a brief stop in Delhi.
March - Lufthansa's Supervisory Board approved an order for 35 aircraft.
The order included 30 aircraft from the Airbus A320neo family and five Boeing 777 freighters. The passenger planes were planned to be delivered in 2016 and the freighters from as early as 2013.
Assets
| Employees | |
|---|---|
| 2011 | 4,624 |
| 2010 | 4,517 |
Products And Services
Express
- time definite
- capacity guarantee
- quality assurance/proactive communication
- tracking
- electronic booking channels
- BUP (Bulk Utilisation Programme) shipping
- road feeder service.
Fresh Service
- for shipments requiring some degree of temperature control: fruits and vegetables, flowers, plants, fish, seafood, meat and dairy products
- transit-storage in a protected and temperature-controlled environment: Perishable Centres are located at large hubs including Frankfurt, Miami, Nairobi and Cairo
- temperature-controlled air transportation
- fresh-to-Door transportation: cool trucks operate from the company's transit hub at Frankfurt to destinations across Europe.
AirShip Service
- 'one-stop' international air-sea freight service from Europe to Australia operated in partnership with Hamburg Sud
- direct and daily connections to the company's hubs in Shenzhen and Hong Kong which are in turn linked to the largest Australian seaports of Melbourne, Sydney and Brisbane.
Special Services
- td.Flash - highest speed and priority service available, no weight limits, guaranteed capacity
- td.Pro - economical, reliable service for standard freight, regardless of size or weight
- Care/td - for all hazardous goods shipments
- Cool/td - for temperature sensitive goods
- Fresh/td - for goods that need to be kept fresh
- Safe/td 1 - security transport for valuable freight
- Safe/td 2 - secure transport for theft-endangered goods
- Live/td - for the transportation of animals
- cd.Solutions - the option to have a standard forwarding solution for direct delivered within Germany and Europe developed.
- Courier.Solutions - for time critical, high value freight, comes with personal supervision on the ground, maximum speed and short-term capacity access
- Airmail
- Charter.
Mergers Acquisitions
2012
April - Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways. The completion of the sale took place after close of business on April 19, 2012. The purchase price amounted to £172.5m (€207m).
As price adjustments were agreed as part of the transaction structure, the net purchase price would be determined at the end of the second quarter 2012, at which point the final amount would be transferred. It was expected that the net purchase price would be negative. However, the costs of the transaction for Lufthansa would amortise within one year. The gross purchase price was expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme was to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme would be offset to a large extent by a one-off contribution from Lufthansa of £84m to a supplementary pension scheme.
On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012. By carrying out the transaction, Lufthansa sold a consistently loss-making company.
March - Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations of its fleet of six Boeing 747-400Fs earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company.
The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.2011
September - DHL Global Forwarding acquired Lufthansa's 50% ownership in joint venture company LifeConEx. The end–to–end life sciences cold chain logistics provider was now a 100% DHL subsidiary.
"After running the innovative specialised logistics service together for six years, DHL Global Forwarding and Lufthansa Cargo agreed that a change in ownership would best prepare LifeConEx to further grow its market position" stated Roger Crook, CEO of DHL Global Forwarding and Freight, and Deutsche Post DHL Board Member sponsor for the Life Sciences & Healthcare Sector.
Established in 2005, the joint venture became the global leader in its niche market. DHL would utilise its global presence to leverage LifeConEx's capabilities and expand its cold chain services. While furthering its cooperation with Lufthansa, DHL would also maintain LifeConEx's neutrality in carriers, forwarders and packaging providers. This investment also supported Deutsche Post DHL's 2015 group and Life Sciences sector strategy.
David Bang, CEO of LifeConEx would continue to lead the company and was committed to overseeing the ownership transition for continued development and success.
June - Following approval from the Japanese antitrust authorities, All Nippon Airways (ANA) and Lufthansa launched a strategic joint venture on Japan-Europe routes.
2010
July - Vienna-based Austrian Lufthansa Cargo is a result of cooperation between Austrian Airlines and Lufthansa Cargo, which began its operation on July 1, 2009.
The new company is marketing all freight capacities of both airlines in Austria. Freight activities in all other countries have been amalgamated under the management of Lufthansa Cargo.
Lufthansa Cargo stated: "Through the successful integration of Austrian Cargo, our joint customers will profit from extensive connections in the eastern Europe growth region as well as access to the entire product portfolio and electronic booking channels of Lufthansa Cargo. (...) The airport shall become a centre of operations in future between eastern and western Europe."
Managing Directors of Austrian Lufthansa Cargo GmbH are Franz Zöchbauer and Hasso Schmidt. Lufthansa Cargo has a 74% stake in the new company, Austrian Airlines holds 26%. The company employs around 120 people.
February - Lufthansa Cargo and Austrian Airlines had agreed to step up cooperation between their two companies in the airfreight sector. Under the new agreement, the flow of cargo traffic through the hubs at Frankfurt, Munich and Vienna would be optimised. Both companies' global distribution activities would be merged and their product portfolios and production processes harmonised.
In future, the two companies would jointly route their cargo traffic through the Vienna hub which would boost freight flows. Lufthansa Cargo and Austrian Cargo would also integrate their freight handling and distribution activities in Austria. In all other countries worldwide, freight activities would in future be amalgamated under the aegis of Lufthansa Cargo.
The CEO and Chairman of Lufthansa Cargo, commented: "Vienna Schwechat will become a central European hub for Lufthansa Cargo - comparable to our German hubs at Frankfurt and Munich. Thanks to Austrian's excellent route network, Lufthansa Cargo customers will also be able to take advantage of direct flights to destinations in all corners of the globe."
The Chief Commercial Officer Austrian Airlines, noted: "This marks a further step in the reorganisation of Austrian Airlines. Our cargo business will benefit from the new structure. We will lower our costs and improve our product portfolio. At the same time, we will be able in future to provide our customers with a globe-spanning network and the extensive product portfolio of the world's largest air cargo alliance."
The measures will take effect on July 1, 2010.2009
June - time:matters formed a partnership with LOT Polish Airlines. The new partnership would enable time:matters to access additional flights for the transport of same day shipments to Poland. Presently it could access just under twenty connections per day to and from Poland whilst following the agreement the amount of possible flights has doubled. Already this year time:matters had forged agreements with Brussels Airlines and Cebu Pacific Cargo.
The expansion of the time:matters' same day route would benefit companies based in Poland and in the Baltic states as well as international corporate clients that maintain business relations in these regions. The expanded use of Polish airports for the transport of European same day shipments reduces transport times to and from Poland and to cross-border destinations. It also created more flexible cut-off times and led to the partial or in some cases even complete elimination of transit flights via Frankfurt or Munich that were once necessary.
"The cooperation with LOT Polish Airlines offers our customers greater flexibility as well as an increased frequency for flights to and from Poland," says the Country Manager of time:matters Poland. "The new partnership provides us with a considerable advantage in terms of time and enables significantly later cut-off times, which is highly beneficial for our customers," he adds.
The Director of Cargo and Mail at LOT Polish Airlines, emphasises: "We are pleased to have gained a partner such as time:matters, which specializes in same day services. This addition to our portfolio represents a considerable added value for our customers."2008
December - German airline group Lufthansa made significant progress with its move to acquire European scheduled carrier Austrian Airlines. On the cargo front, both carriers were major players in Central and Eastern Europe markets among others.
The supervisory boards of the two airlines had approved Lufthansa's plans to initially acquire the 41.56% share in Austrian Airlines AG held by Österreichische Industrieholding AG (ÖIAG).
"This share package is to be acquired at a price of €366,000," stated Lufthansa. "In addition, a debtor warrant will be arranged, of which Lufthansa will pay a sum of up to €163m depending on Austrian Airlines' economic performance and the Lufthansa share outperforming its competitors."
Lufthansa said that in the course of the period specified by Austrian takeover law, it would also make a public takeover bid to Austrian Airlines' free float shareholders. The company was applying to the Austrian Takeover Commission for an extension of the notification period to the longest permissible time.
"The bid price will correspond to the average weighted market price of the Austrian Airlines share over the six months preceding this announcement. Subject to an examination by the Takeover Commission, this figure will be €4.44 per share. In total, some €215m will be offered to private and institutional free float shareholders as part of the takeover bid."
Lufthansa pointed out that execution of those contracts was subject, inter alia, to the conditions precedent of anti-trust approval and the approval of a €500m restructuring grant to be made by the Republic of Austria, both of which must be granted by the EC (European Commission). "Furthermore, Lufthansa must hold 75% of the shares in Austrian Airlines - including those transferred by ÖIAG - after the end of the regular acceptance period for the public takeover bid."
Lufthansa said that following acquisition, Austrian Airlines would remain a "broadly independent" airline with its head office in Austria, its own brand, fleet and crew, and would be managed as a profit centre in the Lufthansa Group. "Lufthansa has agreed to maintain Austrian air traffic infrastructure to the greatest possible extent, taking into consideration the needs of Vienna as a business location," it added.2006
September - DPWN/DHL and Lufthansa applied to establish a joint venture cargo airline called 'Newco'. The two companies approached the German Cartel office which regulated competition in German markets for permission to establish the new company.2005
In 2004, 50.9m passengers travelled with Lufthansa to 176 destinations, 9.2m with SWISS to 70 destinations.
The Lufthansa Group employs about 90,000 employees and operates a fleet of 377 aircraft (consolidated fleet). The SWISS Group with 7,900 employees operates 80 aircraft (total fleet).
Anticipated timetable
| Date | Action |
| March 2005 | Acquisition of minority shareholding in SWISS |
| May 2005 | Public takeover offer to the free-float shareholders |
| 3rd Quarter 2005 | Acquisition of shares in SWISS of up to 49% after receiving cartel-law clearance from the European Commission |
| October 30, 2005 | Gradual operative integration from the 2005/06 winter flight schedule |
| 2006-2007 | Complete takeover of SWISS after securing traffic rights |
Alliances
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Airmail Center Frankfurt
Airmail Center Frankfurt is a joint venture between Lufthansa Cargo (40%), Fraport AG (40%) and Deutsche Post (20%).
The company provides an airmail transhipment service for Lufthansa Cargo and other airlines at Frankfurt and Munich airports. Airmail Center Frankfurt serves about 300 flights, handling incoming and outgoing mail as well as transit mail with an average total daily volume of 400 tonnes - packed by postal services worldwide in sacks, bags and containers.
© 2012 Transport Intelligence
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All Nippon Airways
Following approval from the Japanese antitrust authorities in June 2011 , All Nippon Airways (ANA) and Lufthansa launched a strategic joint venture on Japan-Europe routes.
© 2012 Transport Intelligence
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Global Logistics System Europe (TRAXON)
TRAXON Europe, based in Frankfurt, was founded in 1991 as a joint venture between Air France and Lufthansa Cargo. The company offers comprehensive electronic solutions for the air cargo industry.
TRAXON Europe's global network connects more than 9,000 forwarding offices with about 100 international airlines.
© 2012 Transport Intelligence
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HYACT
Lufthansa Cargo owns 46% in cargo handling joint venture Hua Yu Air Cargo Terminal Co Ltd (HYACT).
© 2012 Transport Intelligence
2008
January - Lufthansa Cargo established a further joint venture air freight handling company in China. The new venture, in the north China business metropolis of Tianjin, was with Tianjin Airport Hua Yu Air Cargo Terminal Co Ltd (HYACT).
The freight subsidiary of German airline group Lufthansa took a 46% holding in HYACT. The other partners were Taiwanese investor Hwa-Hsia International Holding Ltd (HHIH) with 49% and Tianjin Airport International Logistics Joint Stock Co Ltd (TAIL) with 5%.
Management of the new handling joint venture would be in the hands of Ulrich Huesson. He was previously senior manager of customer relations and operations at the International Cargo Centre Shenzhen (ICCS).
Lufthansa Cargo added that previously, the Tianjin region's international air freight had for the most part been handled at Beijing International Airport. However, that gateway was reaching the limits of its capacity. "At the latest with the start of the Olympic Summer Games 2008, it is planned to shift the handling of freighters to Tianjin."
Lufthansa Cargo was already represented in Shanghai with a 29% holding in Shanghai Pudong International Airport Cargo Terminal Co Ltd (PACTL) and in ICCS in the southern Chinese Pearl River Delta with 50%. In addition, Jade Cargo International, in which Lufthansa had a 25% stake, served important economic centres worldwide from Shenzhen with six B747-400 freighters.
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International Cargo Center Shenzhen (ICCS)
Located on the Pearl River Delta, the International Cargo Center Shenzhen (ICCS) offers a full range of cargo handling services for Shenzhen Baoan International Airport. Since its founding in September 2004, the company operates with Lufthansa Cargo on an equal partnership basis.
© 2012 Transport Intelligence
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Air China
Lufthansa and Air China are Star Alliance members, and have had active code-sharing operations since 1989.
In 1994, this relationship was strengthened by the establishment of a Maintenance, Repair and Operations Company (MRO) called AMECO, between the two companies.
AMECO provides MRO services to major air carriers at Beijing airport.
© 2012 Transport Intelligence
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Cathay Pacific Cargo
Cathay Pacific and Lufthansa Cargo cooperate on cargo flights and offer a joint twice-weekly freight flight between Hong Kong, Frankfurt and London.
© 2012 Transport Intelligence
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Dachser GmbH & Co KG
In Febraury 2012, Dachser Transport of America Inc. (Dachser USA), signed an agreement to become the newest member of Lufthansa Cargo's Global Partnership Program. The Program's mission was to increase cooperation amongst its members for planning capacity, reducing transaction costs and promoting key industry issues.
"Lufthansa Cargo's closely meshed route network and frequent, excellent service makes the company a strong partner for our intercontinental business," said the managing director Dachser Air & Sea Logistics. With a route network that covers some 300 destinations in over 100 countries, Lufthansa ranks among the world's leading air freight carriers.
© 2012 Transport Intelligence
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DHL Express
DHL Express and Lufthansa Cargo each own 50% of their joint venture AeroLogic.
AeroLogic launched operations in the summer of 2009 following the delivery of its first Boeing 777F freighter. With a workforce of about 150, it serves selected routes to Asia and North America from Leipzig Halle Airport.
At the end of 2011, AeroLogic operated eight Boeing 777F aircraft.
© 2012 Transport Intelligence
2010
October - DHL introduced three new air express routes between Europe, the Middle East and Asia Pacific. The routes were being served by AeroLogic, the joint venture cargo airline of DHL Express and Lufthansa Cargo.
The Chief Executive Officer of DHL Express, said, "We are proud to spearhead developments that improve the connectivity of markets," says Allen. "There is a continuously high demand for express transport of goods and documents between key markets in Europe, Asia Pacific and EEMEA, and our new routes will provide customers with more flexibility and add capacity where it is needed."
Following the delivery of AeroLogic's 7th Boeing 777F aircraft, DHL Express had launched an early bird connection from Hong Kong to Leipzig. The new addition enabled the company to offer westbound DHL Express Worldwide next-day delivery service. The company also added the new Bangkok stop to its Leipzig-Singapore-New Delhi route to improve speed of delivery to the important Southeast Asian market. The new Brussels to Bahrain route, which went live on October 12, added to the existing Leipzig to Bahrain connection and enhanced DHL Express' ability to serve a high-demand trade lane that connected European and American markets to the Middle East.
May - DHL expanded its air network with an Aerologic route linking the UAE to Asia and Europe. Aerologic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, would operate a B777F flight between Leipzig and Hong Kong with a connection in Sharjah, the third largest emirate of the UAE.
"This Aerologic flight route via the UAE will boost our air network capacity on an increasingly important tradelane. Asia and Europe have strong trade relations with the Middle East and China will play an increasingly important role in trade with the UAE. In 2009, China emerged as the top trading partner of the UAE with 12.9% of total imports into the Emirates originating from China. With enhanced linkages via the Middle East, we will also deliver greater time savings and better connections to our customers," said its CEO, DHL Express Asia Pacific, Eastern Europe, Middle East and Africa.
"With its strategic location, the UAE is an excellent location as a logistics distribution centre in the global supply chain. The Aerologic flight connection enables DHL's customers to enjoy improved transit times with the one day service from Asia to UAE and two days to the EU," said the Vice President, DHL Aviation, Express Asia Pacific, Eastern Europe, Middle East and Africa.
Aerologic took delivery of two additional B777F aircrafts in December 2009. With a fleet of four, it was currently the largest operation of B777F worldwide. Aerologic expected delivery of four additional B777F aircraft in 2010 (planned for June, July, September and November).
January - AeroLogic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, was expanding its network, following delivery of two additional aircraft last month. The company was now introducing new daily flights from Leipzig to Hong Kong, four of them non-stop, and weekend flights from Frankfurt to Atlanta and Chicago during the current winter schedule. The new additional destinations and increased frequency of nonstop flights would help both parent companies to strengthen the service offerings to their customers. Demand for Europe to Asia and Europe to US remained stable, despite the weakened world economy, and was expected to increase in the mid term.
DHL Express, commented on the network expansion: "AeroLogic's new routes offer excellent opportunities for DHL Express. Trade between Europe and Asia remained at a high level during the recent crisis, indicating a structural demand in both regions for the other's products and commodities."
Lufthansa Cargo, added: "With destinations in North America we can now further expand our dense network to the United States. Especially on weekends we see a high demand for capacity from and to our hubs in Atlanta and Chicago. With the Boeing 777 the Lufthansa Cargo Group can now offer its customers three different freighter types: the MD-11 of Lufthansa Cargo, the Boeing 747-400 of Jade Cargo International and AeroLogic´s Boeing 777."
AeroLogic took delivery of two additional B777F aircraft in December and with a fleet of four was currently the largest operator of the B777F worldwide. The B777F was the most efficient and environmentally friendly long range wide-body freighter aircraft available. AeroLogic expects to expand its network with two new routes to Asia and the U.S. with the delivery of four additional B777F aircraft in 2010 (planned for June, July, September and December). With these aircraft, the airline could expand its route system to include further destinations and would achieve its originally planned network size and reach in the beginning of 2011.
2009
June - AeroLogic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, shrugged off the economic downturn and officially started operations. The airline received delivery of its first Boeing 777F aircraft as well as an Air Operator Certificate (AOC) from the German Aviation Authority (LBA). The airline will serve new air routes between Europe and Asia, flying cargo for customers of its parent companies.
AeroLogic was established to offer air transport services on the Europe-Asia trade lane, which the company expected to grow by approximately 5% annually in the medium term. The airline would initially serve the express routes Leipzig-Bahrain-Singapore-Delhi-Leipzig on weekdays and the cargo routes Leipzig-Tashkent -Hong Kong-Tashkent-Leipzig on weekends. By 2010, the airline would gradually expand the network to offer new direct connections to most of Asia's major cities.
AeroLogic would operate with eight leased brand new B777F freighters, the first four of which were expected to be delivered this year. These were capable of non-stop flights from AeroLogic's home base Leipzig, Germany, to key Asian growth markets, reducing transit times.
"The new airline shows a strong commitment of both partners to extend their services for their customers and to establish a new strong global player in the industry," said the chief executive officer of Deutsche Lufthansa AG. "In light of an inevitably recovering market, the strengthening of vital trade lanes through the cost-efficient shared use of the most modern freighter aircraft currently available must be viewed as a smart investment," said the chief executive officer of Deutsche Post DHL. "We are making available to our customers the most efficient air freight capacity in the market," DHL added.
Cargo capacities would be marketed individually by the two partners. In addition to the Europe - Asia routes, in the future it would also serve Lufthansa Cargo's EU-North America routes. The first commercial flight of AeroLogic was scheduled for June 29, 2009.
May - US aircraft manufacturer Boeing reported the delivery of the first B777 freighter aircraft to Deucalion Capital and its customer AeroLogic GmbH on May 12.
Boeing explained that AeroLogic, formed in 2007 and based in Leipzig, Germany, was a new cargo company joint venture between German carrier Lufthansa Cargo and DHL Express and would operate a fleet exclusively comprising the new B777F. Deucalion Capital and customer AeroLogic currently had eight B777Fs on order, it added.
The managing director of AeroLogic, commented: "The B777F is the perfect airplane for a start-up cargo operation such as ourselves; its combination of reliability and efficiency will allow us to quickly establish the company as a leading force in the industry."
According to Boeing, the B777F is the world's longest-range twin-engine freighter and features the lowest trip cost of any large freighter, with high cargo density and a 10ft (3.1m) interior height capability that complements the B747 freighter family. Providing cargo capacity normally associated with larger airplanes, continued Boeing, the B777F could fly up to 4,885 nautical miles (9,045kms) with a full payload of 226,800 pounds (103 tonnes).
2008
September - Following completion of an interim solution realised in cooperation with DHL, Lufthansa Cargo AG reported that it was initiating the next stage in the development of its air freight handling at Leipzig/Halle Airport in Germany "and thus securing long-term growth at its second-largest German freighter hub".
The German carrier stated that to coincide with the launch of operations of new cargo carrier AeroLogic in spring 2009, Lufthansa Cargo would shift its cargo handling activities into Leipzig/Halle's World Cargo Centre. That facility, which was built in 2007 by Garbe Logistic, would ensure fast and efficient handling processes. From then on, PortGround GmbH, a subsidiary of airport operator Mitteldeutsche Airport Holding, would assume responsibility for Lufthansa Cargo's handling services at Leipzig/Halle Airport.
"By moving into the World Cargo Center, we aim to secure options for long-term growth," said Lufthansa Cargo. "Following the Federal Administrative Court ruling, we are adhering to our strategy of expanding Leipzig into an air freight hub with Lufthansa Cargo's and AeroLogic's freighter fleets."
In order to achieve that objective, Lufthansa Cargo would invest at short notice in staff and handling equipment.
Lufthansa Cargo said its move into the World Cargo Center marked an important step in the expansion of Leipzig as an air cargo base. "If dynamic market growth is sustained, Lufthansa Cargo plans to build its own terminal at the airport," it concluded.
January - DHL Express created a joint venture cargo airline with Lufthansa Cargo, a move which was in line with the company's worldwide aviation strategy to build a "virtual global airline".
More specifically, the global express operator, part of German logistics group Deutsche Post World Net, claimed that development should enable it to substantially improve overall delivery performance in both directions between Europe and Asia (including China) - the main target sector for AeroLogic's B777-200 long range freighter operations when they begin in 2009 - and offer customers in those markets "very economic" solutions.
"We decided we needed to take a step ahead to provide industry-leading service levels on Europe-Asia trade lanes," explained DHL. "The only way we could do that was to offer a dedicated aircraft network and using this particular type of freighter will enable us to trim transit times vey significantly. The percentage of traffic in both directions between Europe and Asia that we are able to pick up and deliver on the other Continent before noon on the second day will increase to something like 80%."
AeroLogic, which was capitalised at €50m, will be based near Leipzig in Germany which will also be its main European hub. The company takes it name from the established co-operation between DHL and Lufthansa Cargo, albeit with changed corporate colours (grey and yellow).
As flagged up when plans for the airline were first officially outlined last September, AeroLogic will initially operate a fleet of 11 new, 103-tonnes revenue payload capacity B777-200LRFs. The first four were scheduled for delivery in 2009, with four more to follow in 2010, two in 2011 and the final one in 2012. AeroLogic will lease the first eight aircraft from a company called Deucalion Capital VII Limited which was advised and managed by German financial institution DVB Bank AG.
The two partners in the new joint venture airline planned to share the capacity on its freighters. DHL will take the major share on weekdays to support its Europe/Asia operations. At weekends, Lufthansa Cargo will take over primary responsibility for utilising the capacity, mainly on routes to/from Asia and North America.
2007
October - Lufthansa Cargo inaugurated its flight operations to and from Leipzig/Halle. With 21 weekly frequencies within the framework of the inter-continental joint venture with DHL Express, since the beginning of the winter timetable Lufthansa Cargo links the European continent with logistics centres in Asia and the USA.
Lufthansa Cargo was setbuild a new logistics centre at Leipzig/Halle Airport by spring 2009. The investment involved in this development amountedo about €25m.
As of spring 2009, Leipzig/Halle Airport would become the home airport of the new joint freight airline of DHL Express and Lufthansa Cargo. With eleven new freighters of the type Boeing 777-200 LRF, the airline would mainly serve destinations in Asia, but also in the USA.
September - DPWN and Deutsche Lufthansa AG announced that they were going to found a joint cargo airline through their subsidiaries DHL Express and Lufthansa Cargo. The new company, based in Leipzig, in which DHL Express and Lufthansa Cargo would each hold a 50% stake, would have the legal form of a private limited company. It would focus on transporting airfreight and express shipments into and out of Asia. Flight operations with new aircraft of the Boeing 777 type to commence from Leipzig/Halle Airport in April 2009.
The new cargo carrier would initially operate with eleven new Boeing 777-200LRF aircraft. The aircraft would be leased and are scheduled for delivery from February 2009. The cargo capacities of the new airline would be utilised by Lufthansa Cargo und DHL Express. The two partners would continue market and handle those capacities independently.
Pending the granting of traffic rights, the new airline would gradually expand its route network from the summer schedule 2009. On weekdays, it would serve Singapore, Bangkok, Dubai, Bombay, Shanghai, Hong Kong, Seoul, Nagoya, Almaty, East Midlands and Milan. At weekends, it would fly to Shanghai, Astana, Singapore, Bangkok, Sharjah, Hong Kong, Chicago and New York.
Aside from pure airfreight traffic, the two companies would each alone be responsible for warehousing and trans-shipment at Leipzig/Halle Airport. DHL Express would handle its express shipments in the newly built cargo centre. Lufthansa Cargo would shortly build its own logistics centre nearby.
Management of the new airline would be taken over by Dr. Thomas Papke, formerly Lufthansa Cargo, and Thomas Pusch, previously at DHL. The name of the new company and its branding would be decided at a later date.
June - DHL and Lufthansa Cargo planned to form an air cargo venture.
The company, provisionally called NewCo, would operate an intercontinental cargo fleet running both express and classical freight deliveries to destinations in North America and the Middle and Far East.
Lufthansa Cargo was set to transfer all of its Cologne/Bonn freighter flights to Leipzig in conjunction with the opening of a new DHL cargo hub in the city.
March - DHL and Lufthansa Cargo underwent negotiations to create a new partnership. A secret process was believed to have included Emirates SkyCargo, Cargolux and Lufthansa Cargo. The selection of the preferred partner was later concluded, with Emirates and Cargolux eliminated.
DHL elected not to follow UPS and FedEx by investing in its own fleet of wide body freighters, but instead created partnerships with large cargo carriers to guarantee capacity.
DHL and Lufthansa were expected to enter a period of intense negotiations to establish exact details.
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DHL Global Forwarding/Freight
DHL Global Forwarding and Lufthansa have a strategic partnership to develop air cargo security procedures for handling high value and high risk products.
DHL Global Forwarding and Lufthansa Cargo also used to own equal shares in a joint venture, LifeConEx, until DHL acquired Lufthansa Cargo's 50% stake in the company in September 2011, giving it outright ownership.
© 2012 Transport Intelligence
2011
September - DHL Global Forwarding acquired Lufthansa's 50% ownership in joint venture company LifeConEx. The end–to–end life sciences cold chain logistics provider was now a 100% DHL subsidiary.
"After running the innovative specialised logistics service together for six years, DHL Global Forwarding and Lufthansa Cargo agreed that a change in ownership would best prepare LifeConEx to further grow its market position" stated Roger Crook, CEO of DHL Global Forwarding and Freight, and Deutsche Post DHL Board Member sponsor for the Life Sciences & Healthcare Sector.
Established in 2005, the joint venture became the global leader in its niche market. DHL would utilise its global presence to leverage LifeConEx's capabilities and expand its cold chain services. While furthering its cooperation with Lufthansa, DHL would also maintain LifeConEx's neutrality in carriers, forwarders and packaging providers. This investment also supported Deutsche Post DHL's 2015 group and Life Sciences sector strategy.
David Bang, CEO of LifeConEx would continue to lead the company and was committed to overseeing the ownership transition for continued development and success.
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DSV A/S
DSV is a member of Lufthansa Cargo's Global Partnership Programme.
© 2012 Transport Intelligence
2008
December - Denmark-based DSV announced that it was to be admitted to the Global Partnership Programme of German carrier Lufthansa Cargo AG.
Commenting on that development the Vice President DSV Air & Sea Holding, said: "DSV has in recent years evolved into one of the world's leading logistics groups. Lufthansa Cargo has consistently supported our progress by listening to our requests and adjusting to the kind of company we are, backed up by individuals in the global Lufthansa network."
Lufthansa Cargo said that over the years, its Global Partnership Programme had developed into a "solid platform for stability and growth". "Alongside joint sharing in worldwide growth in the air freight market, the programme is geared to increasing closer cooperation and the inter-meshing of capacity planning as well as operational processes and systems."
Lufthansa Cargo stated that about 50% of its business was generated with the carrier's twelve Global Partners. In addition to newest member DSV, they included Agility, CEVA, DHL Global Forwarding, Expeditors, Hellmann, Kühne + Nagel, Nippon Express, Panalpina, DB Schenker, UPS and UTi.
According to the Lufthansa Cargo statement, DSV had offices in more than 55 countries all over the world and together with partners and agents offered services in more than 110 countries. Worldwide annual turnover in 2008 was expected to be €5.2bn.
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Hamburg Süd Group
Since 2009, Lufthansa Cargo and Hamburg Sud have offered a sea-air freight solution between Europe and Australia called AirShip.
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Hong Kong International Airport (HKIA)
From HKIA, Lufthansa operate passenger flights to Frankfurt and Munich, as well as cargo flights to Almaty, Astana, Bahrain, Calcutta, Cologne/Bonn, Frankfurt, Sharjah, and Tashkent.
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Incheon International Airport Corporation
Lufthansa operate passenger services to Busan, Frankfurt, and Munich and cargo services to Bahrain, Kôln/Bonn, Leipzig out of Incheon International Airport.
Lufthansa Cargo also operates services out of Incheon International Airport.
© 2011 Transport Intelligence
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Jade Cargo
Lufthansa Cargo, which owned a 25% stake in Jade Cargo, signed a letter of intent with China’s UniTop Group concerning the sale of its share in the company in March 2012.
This marked the withdrawal of Lufthansa Cargo from Jade Cargo.
© 2012 Transport Intelligence
2012
March - Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations of its fleet of six Boeing 747-400Fs earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company.
The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.
2010
September - US-based World Airways had signed a one-year agreement with Chinese carrier Jade Cargo International to operate a B747-400 freighter on a full-time basis for an air cargo service beginning next month (October).
World Airways stated that subject to final government approvals, the aircraft would connect the Chinese industrial centres of Shanghai and Yantai with Chicago in the US. The three weekly flights would then continue to Amsterdam in the Netherlands and return to Shanghai on a 'round-the-world' flight pattern.
World Airways announced a significant increase in its cargo fleet capacity with the addition of two B747-400Fs, increasing its B747-400 fleet to four aircraft, in addition to nine MD11 freighters.
Jade Cargo International Company was founded in October 2004 as a joint venture between Shenzhen Airlines (51%), Lufthansa Cargo AG (25%) and German development finance institute DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH (24%). The company's headquarters are located in Shenzhen. Jade started flight operations in August 2006.
World Airways, a subsidiary of Global Aviation Holdings Inc, is a US-certificated air carrier providing customised transportation services for major international passenger and cargo carriers, international freight forwarders, the US military and international leisure tour operators.
2009
Following the delivery of the final aircraft in January 2008, the Jade Cargo International fleet consisted of six Boeing 747-400ER freighters. The company had been active in the Yellow River delta since January 2008. This is the site of Lufthansa Cargo's equity investment in the handling company Tianjin Aircargo Terminal Ltd. (TAT) and the Chinese boom region around the ambitious freight hub Tianjin, which is served by Jade Cargo International.
2008
March - Lufthansa Cargo and Chinese joint venture airline Jade Cargo International were to extend their co-operation from March 30 when the new 2008 summer timetable goes into effect.
Announcing that development, Lufthansa Cargo said it would then be responsible for marketing the air freight capacity of its Sino-German cargo subsidiary on routes from Europe to Asia.
The blocked space agreement would apply to all Jade's routes ex-Europe, it continued, and be valid throughout the forthcoming summer timetable and the 2008/2009 winter schedule. Under the terms of that new co-operation agreement the marketing and sales partnership between Jade and Swiss WorldCargo would be transferred to the German carrier.
Taking over Jade's capacities ex-Europe will enable Lufthansa to expand its services and offer customers direct flights from major economic centres in Europe to the Pearl River Delta region and Shanghai.
Jade completed its fleet expansion as planned. The integration of Jade's capacities into Lufthansa Cargo's product portfolio on European routes will give customers access to an extensive network. On routes to Asia, Jade - operating under the umbrella of the Lufthansa Cargo group - will offer non-stop flights on routes that were previously only served indirectly via the Frankfurt hub.
Jade, which is based in Shenzhen, south China, flew to that Chinese gateway and Shanghai Pudong from five European points - Amsterdam, Barcelona, Brescia, Luxembourg and Stockholm. From Shenzhen, Jade provided connections to Osaka and Seoul. As part of the capacity expansion, Frankfurt and China's Tianjin Airport would be integrated into Jade's route network.
Jade was jointly owned by Shenzhen Airlines (51%), Lufthansa Cargo (25%) and DEG - Deutsche Investitions- und Entwicklungsgesellschaft (24%).
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Menzies Aviation
Menzies Aviation provides ground handling services for Lufthansa Cargo.
© 2012 Transport Intelligence
2011
March - Menzies Aviation was awarded a contract by Lufthansa at Cluj Airport, Romania.
The three year contract for ramp services began in April and passenger services will begin in November.
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Narita International Airport Corporation
Lufthansa operates passenger flights out of Narita International Airport through the Star Alliance partnership.
It also operates cargo services out of the airport.
© 2012 Transport Intelligence
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Shanghai Airport Group
In 1999, Shanghai Airport Group (51%), Lufthansa Cargo AG (29%) and JHJ Logistics Management Co. Ltd. (20%) founded Shanghai Pudong Int'l Airport Cargo Terminal (PACTL)
It is a warehouse handling company located at Shanghai Pudong International Airport. It handles around 25,000 to 30,000 tonnes of cargo each week. To its facilities and services belong among others 190,000 sq m covered warehouse space and a countrywide road-feeder service. Its maximum handling capacity is about 2.5m tonnes per year.
© 2012 Transport Intelligence
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Singapore Airport (Civil Aviation Authority of Singapore (CAAS))
Lufthansa Cargo operate flights out of Singapore Changi Airport.
© 2012 Transport Intelligence
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Ultramar Group
Ultramar Agencia Marítima is a strategic partner of Lufthansa for its operations in Chile. The alliance has been in existence since 1956 when Lufthansa first started flying to Chile. Ultramar offers the sale of air freight on Lufthansa passenger planes' bellyhold space.
© 2012 Transport Intelligence
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UTI Worldwide
UTI's German subsidiary provides freight forwarding solutions for Lufthansa Cargo.
© 2012 Transport Intelligence
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DB Schenker Logistics
DB Schenker Logistics and Lufthansa Cargo have long cooperated and are at the forefront of e-freight out of Germany.
© 2012 Transport Intelligence
2008
September - Lufthansa Cargo AG and DB Schenker reported that they had despatched the first paperless air freight shipment from Germany.
In a joint statement, the two organisations announced that right on time the item of freight on board Lufthansa flight LH712 had left Frankfurt heading for the South Korean capital of Seoul. As a result, the first e-freight transport had started a month earlier than originally planned.
The chairman of the executive board of Lufthansa Cargo commented: "With paperless freight transport, together with our customers, we move the industry forward, because e-freight not only improves the data quality but, above all, also increases efficiency and in addition spares the environment."
The DB Schenker chairman member of the Deutsche Bahn management board for transportation and logistics added: "In the Netherlands, Canada, Singapore, Hong Kong, Korea, Australia and the UK, DB Schenker has already successfully introduced paperless air freight handling."
Lufthansa Cargo and DB Schenker said that following the successful maiden flight ex-Germany, which was prepared in close cooperation with the German authorities and customs, the use of e-freight was planned to be gradually increased on the route between Germany and Korea. Over the next few months, Lufthansa Cargo wanted to extend e-freight to further German stations and markets in Asia such as Singapore and Hong Kong.
Lufthansa Cargo had been the 'lead carrier' and project coordinator of the IATA (International Air Transport Association) e-freight project for Germany, which involved a number of leading forwarders and airlines. The IATA e-freight project was initiated in 2004 within the framework of the association's 'Simplifying the Business' programme.
Click here to view alliance concern details -
Emirates Airline
Lufthansa Cargo is a partner of Emirates operated Dnata Cargo.
© 2012 Transport Intelligence
Click here to view alliance concern details -
Fraport
Frankfurt Airport serves as Lufthansa Cargo's main operational hub.
Lufthansa Cargo (40%) and Fraport (40%) also operate Airmail Center Frankfurt GmbH (ACF) as a joint venture along with Deutsche Post AG (20%) at Frankfurt Airport.
The ACF handles over 400 tonnes of international air mail daily, arriving in Frankfurt on more than 400 flights. The ACF uses a high performance tilt tray sorting system for distributing letters, parcels, and packages in containers and bags to flights departing daily to approximately 300 destinations worldwide.
© 2012 Transport Intelligence
2012
April - A German court in Leipzig upheld a night-flight ban at Frankfurt Airport between 11 p.m. and 5 a.m. local time.
The ruling came after a Hessen court ruled in October 2011 that 17 night-flights would be banned when FRA’s fourth runway opened in the same month following resident complaints of aircraft noise from nearby Russelsheim and Offenbach. Lufthansa Cargo operated 10 of those scheduled nighttime slots.
2011
December - Lufthansa Cargo begun operations at its new facility for temperature-sensitive freight in Frankfurt, Germany. The Lufthansa Cargo Cool Centre was built in the space of just six months.
The facility was equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 sq m. From now on, all temperature-controlled shipments carried by the airline in Frankfurt would pass through the new facility.
The Board Member Product and Sales, said: "Our Cool/td product is assuming ever-increasing importance for Lufthansa Cargo thanks to growth rates of 15%. The Lufthansa Cargo Cool Center will enable us to ship temperature-controlled freight faster, more reliably and more efficiently at our Frankfurt hub, and further expand our position as a leading provider of cool transports."
Lufthansa Cargo earmarked substantial capital expenditure last year in the Cool/td product. Besides investing in the development of the Opticooler, the industry's most efficient cooling container, the cargo carrier commenced operations at its first international pharmaceutical hub at Hyderabad in India.
October - Lufthansa Cargo underlined its fears regarding the consequences ensuing for the international logistics industry from the provisional night-flight ban placed upon Frankfurt Airport from October 30, 2011 by a regional court.
Following the ruling from the administrative court in Hesse, issued a few days before the introduction of Lufthansa's winter flight schedules, the company had put together an emergency timetable for the period after October 30. A number of flights had had to be relocated to daytime slots or to the early and late hours of the day.
Individual connections – to China, for example – had been cancelled entirely. Other flights bound for China would have to stop over at Cologne/Bonn Airport for several hours after an evening departure from Frankfurt so as to fly on, as originally planned, at night-time in the direction of the Far East. "We will be operating in future with unnecessary take-offs and landings, which will lead to more noise, higher fuel consumption and more costs running into millions," commented Lufthansa Cargo Chairman.
Furthermore from January, at least one MD-11 freighter was to be transferred from Frankfurt to Cologne/Bonn Airport. The freighter would operate the overnight flights for the German logistics industry to North America, which could no longer be guaranteed from Frankfurt because of the night-flight ban.
Lufthansa Cargo believed the provisional night-flight ban in Frankfurt was a drastic signal for the German logistics industry. He emphasised: "As export world champion, Germany is reliant on dependable connections to ship air freight to destinations around the globe. Frankfurt Airport plays in that respect a highly important role, since around 40% of German exports is transported by air."
The company said that it was hoping that the Federal Administrative Court in Leipzig (the supreme court of appeal) would allow a minimum of necessary night flights in its final ruling.
October - The fourth runway at Frankfurt airport was opened, yet what Frankfurt’s owners and customers had hoped to be a useful improvement to capacity had ballooned into a major crisis for the airport’s cargo operations. At 2.8 km the new runway would be shorter than the existing facilities and was designed to serve smaller short-haul traffic. Part of the 'Expansion 2020 programme', it was the first major part of a development that would also see a new terminal and new cargo handling facilities by 2016. The taxi-ways to the new runways would also include a bridge over the neighbouring motorway and another over a high-speed railway.
In order to get this programme past protesting local residents and environmental pressure groups, Fraport, the airport's owner, agreed to certain conditions including greater restrictions on night-flights. The residents and pressure groups who continued to dispute the airport expansion had now won a court order banning all night-flights from Frankfurt citing this agreement. The court judgement enacting a ban, which was issued on the October 11 was temporary until the case could be concluded in a higher court in 2012. In the meantime all flights between 23.00 and 05.00hrs would be prohibited from October 30.
The immediacy of this decision had dealt a blow to Lufthansa Cargo in particular. It had been forced to adopt emergency winter schedules including scrapping two flights a week to China and even flying freighters to neighbouring, less regulated German airports during the day in order for them to take off for their final destinations during the night. Such had been the disruption that Lufthansa's CEO had even suggested that the new runway should not be opened, circumventing the ban on night flights.
It was unclear what effect this ban would have on air cargo traffic in Europe. Frankfurt was Europe's largest air cargo hub, although belly freight operations would be affected less as there was no restriction on day-time flights. Presumably it would be the freighters and particularly those operating to China and Central Asia that would be affected most. This was all the more painful for Lufthansa as this was a route which they had made particular efforts on. There would be those who benefit from what was likely to be a major – if presumably temporary – restructuring of air freight logistics in Europe. Neighbouring airports in France, the Netherlands but also possibly the new Leipzig-Halle facility which was home to the AeroLogic Lufthansa –DHL joint venture, could see more business. Of even greater threat was the ability of Dubai and the smaller Gulf airports to jump in and grab some trans-shipment business from Frankfurt.
Click here to view alliance concern details
Sister Concerns
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Austrian Lufthansa Cargo
Since summer 2010, Lufthansa Cargo has fully integrated the capacity of Austrian Airlines within its own portfolio of services and products. The route network of Austrian Airlines encompasses 120 destinations in around 60 countries. The carrier's intercontinental network through VIE includes flights to Japan, India, China, Thailand, US and Canada as well as Dubai.
The Vienna hub is strategically located between Eastern and Western Europe. It offers short transit times as well as the dedicated "Quick Ramp Transfer" service.
In addition to a large portfolio of flight options, the newly founded Austrian Lufthansa Cargo company lays on extensive Road Feeder Services (RFS), especially into and out of Central and Eastern Europe.
© 2012 Transport Intelligence
2010
July - Vienna-based Austrian Lufthansa Cargo is a result of cooperation between Austrian Airlines and Lufthansa Cargo, which began its operation on July 1, 2009.
The new company is marketing all freight capacities of both airlines in Austria. Freight activities in all other countries have been amalgamated under the management of Lufthansa Cargo.
Lufthansa Cargo stated: "Through the successful integration of Austrian Cargo, our joint customers will profit from extensive connections in the eastern Europe growth region as well as access to the entire product portfolio and electronic booking channels of Lufthansa Cargo. (...) The airport shall become a centre of operations in future between eastern and western Europe."
Managing Directors of Austrian Lufthansa Cargo GmbH are Franz Zöchbauer and Hasso Schmidt. Lufthansa Cargo has a 74% stake in the new company, Austrian Airlines holds 26%. The company employs around 120 people.
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bmi Cargo
The cargo division of the British Midland Airways (bmi), based in the UK, is responsible for bmi's belly capacities on routes to Asia, Africa, Europe and the Middle East.
Since 2009, its cargo division had been a member of the Lufthansa Cargo Group, until it was sold. bmi Cargo independently markets the freight capacity of about 1,700 flights per week. bmi cargo's portfolio of air freight services ranges from the transport of normal air cargo to express cargo, mail shipments and animal transports.
In April 2012, Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways.
© 2012 Transport Intelligence
2012
April - Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways. The completion of the sale took place after close of business on April 19, 2012. The purchase price amounted to £172.5m (€207m).
As price adjustments were agreed as part of the transaction structure, the net purchase price would be determined at the end of the second quarter 2012, at which point the final amount would be transferred. It was expected that the net purchase price would be negative. However, the costs of the transaction for Lufthansa would amortise within one year. The gross purchase price was expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme was to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme would be offset to a large extent by a one-off contribution from Lufthansa of £84m to a supplementary pension scheme.
On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012. By carrying out the transaction, Lufthansa sold a consistently loss-making company.
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Brussels Airlines Cargo
Brussels Airlines Cargo, a member of the Lufthansa Cargo Group since 2009, independently markets the belly capacities of Brussels Airlines' passenger aircraft. The Belgian carrier flies from Brussels Airport to 40 destinations in Europe and also to 18 destinations in Africa.
© 2012 Transport Intelligence
2009
March -time:matters, formed a partnership with Belgian carrier Brussels Airlines. The latter was based in Brussels-Zaventem and had an extensive international route network.
Germany-based time:matters stated that through the new partnership, it could draw on additional flights to European destinations such as Munich, Zurich or Brussels for the transport of its sameday shipments. It could now access 852 additional direct flights from Brussels to 44 European sameday air stations per week.
"This translates into an increased route frequency that enables time:matters to offer its customers an even more comprehensive sameday service, due to greater flexibility when selecting the fastest connections and the significant reduction of transport times," claimed time:matters.
The special logistics provider said the expansion of the sameday route network benefitted its customers in Belgium and throughout the rest of Europe. "The use of Brussels Airport as an additional hub for the transport of European sameday shipments also in part significantly reduces transport times to and from Belgium as well as to cross-border destinations. Therefore, a sameday shipment from Warsaw to Maastricht can be flown via Brussels, instead of via Frankfurt and Amsterdam, as was previously the case. This in turn decreases the transport time by two hours to merely four hours."
Time:matters added that the partnership was also a great advantage in terms of the direct connections that Brussels Airlines flew to from its headquarters in Brussels, "which completely eliminate transit flights via Frankfurt or Munich that were previously necessary".
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cargo counts GmbH
cargo counts GmbH was a former wholly owned subsidiary of Lufthansa Cargo until its activities were merged with Lufthansa Cargo's general freight operations in August 2008.
Cargo Counts was set up in 2003 as an independent business unit, to develop the market for outsourced cargo management services on behalf of passenger airlines.
© 2012 Transport Intelligence
2008
August - Lufthansa Cargo announced two new but unrelated developments - the imminent integration of the business activities of 100% subsidiary cargo counts GmbH and an expansion of its security measures in the US.
Commenting on the first move, Lufthansa Cargo stated that at the beginning of 2009, it would take over responsibility for the business activities of cargo counts GmbH, including its staff and customers. Within the context of a merger with Lufthansa Cargo, continued the carrier, the supplier of total cargo management would be dissolved at the end of the year.
The chairman of the executive board of Lufthansa Cargo, commented: "Through the integration of cargo counts we are provided with operational synergy effects and will further increase the economic efficiency of Lufthansa Cargo Group."
Lufthansa Cargo originally hived off cargo counts as an independent company in September 2003. Its customers mainly include tourist airlines like Condor or Sun Express. In addition, cargo counts markets the capacities of Italian airline AirOne and of Croatia Airlines. Customers of Lufthansa Cargo also have access to those networks.
May - German air freight specialist cargo counts (subsidiary of German carrier Lufthansa Cargo AG) appointed SP Aviation Services Inc as its new general sales agent (GSA) for Turkey.
The latter, which was headquartered in Istanbul and also opened a new office in Izmir, would be solely responsible for marketing the air freight capacity of cargo counts' partner airlines. The main carrier, besides Condor, Croatia Airlines and euroAtlantik, is the Turkish holiday airline SunExpress.
According to cargo counts, SP Aviation Services fought off competition from several internationally-established companies to win the tender. "With our bases in Istanbul, Antalya and Izmir we can guarantee cargo counts a high degree of customer proximity in Turkey, which is a growth market," said Nursel Gueven, director sales and marketing at SP Aviation. "Our local proximity to SunExpress will also simplify sales and handling enormously and enable us to respond quickly and flexibly to all our customers' wishes."
Cargo counts GmbH, which is based in Hattersheim, close to Frankfurt Airport since its founding in 2003 has provided total cargo management for various airlines.
March - A co-operation agreement between cargo counts and German-Turkish airline SunExpress was to be extended by a further three years, the former announced.
Under that deal, SunExpress would market its cargo capacity exclusively via cargo counts until 2011. The agreement encompassed sales, marketing, cargo handling, accounting, IT and controlling as well as flight data, yield and capacity management. Cargo counts specialised in total cargo management and has co-operated with SunExpress since its founding in 2003.
To date, working in partnership with SunExpress, cargo counts said it had handled more than 6m kilos of freight, with the volume rising each year. Fresh vegetables for the German market accounted for the bulk of cargo transported from Turkey, it added.
SunExpress operates a fleet of 14 B737-800s and three B757-200s with a total capacity of more than 51,000 kg. In the new summer timetable, the airline will offer 680 flights per week, 328 of them on international routes.
In addition to its home base Antalya and a second hub in Izmir, SunExpress was setting up another base in Istanbul. From there, the airline would serve the German destinations of Hanover, Cologne and Berlin. Overall, flight frequencies to Germany would be significantly increased. Other major European cities, such as Zurich, Amsterdam, Stockholm, Oslo and Paris, would be served mainly from Izmir.
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handling counts GmbH
handling counts GmbH is a wholly owned Lufthansa Cargo subsidiary that was formed in 2008.
It conducts freight handling at Frankfurt Airport, employing about 300 handling staff at the Lufthansa Cargo Centre in Frankfurt (build-up und break-down), at the Frankfurt Animal Lounge and in the Lufthansa Cargo Service Centre.
© 2012 Transport Intelligence
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Jettainer GmbH
Jettainer is wholly owned subsidiary of Lufthansa Cargo. It specialises in load device management. The company was founded at the end of 2003 and is based in Raunheim, near Frankfurt Airport. It manages about 80,000 containers and pallets for air cargo transport worldwide.
© 2012 Transport Intelligence
2010
March - Lufthansa Cargo and Jettainer concluded trials of lightweight containers that will allow lower fuel burn and thus lower CO2 emissions.
Jettainer, the outsourced ULD (Unit Load Device) management company partly owned by Lufthansa Cargo, provided 1,000 containers made of fiberglass, Kevlar fiber or Dyneema for a total of approximately 120,000 trial runs on Lufthansa flights over six months. The containers are 20% lighter than aluminum containers.
"Lufthansa Cargo stands by its ecological commitment. By 2020, we aim to reduce our specific fuel consumption by 25%," said Lufthansa Cargo. "The successful tests with lightweight containers constitute a significant step in that direction."
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Lufthansa Cargo Charter Agency GmbH
Lufthansa Cargo Charter is a wholly owned subsidiary of Lufthansa Cargo. Based at Cargo City South at Frankfurt Airport, it is a global full-service provider offering all types of air cargo charter services specialising in non-standard cargo requirements.
© 2012 Transport Intelligence
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Lufthansa Cargo Servicios Logisticos de México S.A. de C.V.
Lufthansa Cargo Servicios Logisticos de México S.A. de C.V., a wholly owned Lufthansa Cargo subsidiary, is based at Mexico City International Airport, where it has its own warehouse. Since 2007, the company has been offering cargo loading and unloading services for local forwarders and airlines.
© 2012 Transport Intelligence
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Lufthansa CityLine
Lufthansa CityLine is a wholly-owned subsidiary of Deutsche Lufthansa AG and a partner in the Lufthansa Regional concept. CityLine employes 2,301 people (as of December 31, 2010). In 2010, the airline carried 6.3m passengers.
Lufthansa Cargo markets the belly capacities of passenger flights operated by Lufthansa, Lufthansa CityLine, Condor and Spanair.
© 2012 Transport Intelligence
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Lufthansa Group
Lufthansa Group is the parent company of Lufthansa Cargo.
© 2012 Transport Intelligence
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Swiss International Air Lines AG
Swiss International Air Lines AG (Swiss) is a wholly owned subsidiary of Lufthansa. It is the principal airline of Switzerland operating scheduled services in Europe and to North America, South America, Africa and Asia. Its main hub is Zurich Airport (ZRH). The airline was formed after the 2002 bankruptcy of Swissair, Switzerland's former flag carrier.
Although the freight capacity of Swiss is not marketed directly by Lufthansa Cargo, it nevertheless has a close partnerhip with the freight division of the company.
© 2012 Transport Intelligence
2007
March - Lufthansa announced that the incorporation of SWISS was progressing more rapidly than expected. Overall synergies totalled more than $263m and were significantly higher than the amount originally forecast.
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Swiss WorldCargo
Swiss WorldCargo, the airfreight division of Swiss International Air Lines, was founded in April 2002. It provides connections to some 150 destinations in more than 80 countries worldwide. Headquartered at Zurich Airport, the company focuses on the transport of high-value goods. Swiss WorldCargo markets the belly capacities of SWISS' passenger aircraft and augments its network with road feeder services.
The acquisition of the Swiss carrier by Lufthansa paved the way for Swiss WorldCargo to join the Lufthansa Cargo Group in March 2005.
© 2012 Transport Intelligence
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time:matters GmbH
time:matters has been part of the Lufthansa Cargo Group since 2002, when the former Lufthansa Cargo SameDay World GmbH was spun off.
The company, which is based in Neu-Isenburg, is a specialist provider of time-critical courier, same-day and emergency logistics services.
Lufthansa Cargo has a 48% stake in the company.
© 2012 Transport Intelligence
2009
June - time:matters formed a partnership with LOT Polish Airlines. The new partnership would enable time:matters to access additional flights for the transport of same day shipments to Poland. Presently it could access just under twenty connections per day to and from Poland whilst following the agreement the amount of possible flights has doubled. Already this year time:matters had forged agreements with Brussels Airlines and Cebu Pacific Cargo.
The expansion of the time:matters' same day route would benefit companies based in Poland and in the Baltic states as well as international corporate clients that maintain business relations in these regions. The expanded use of Polish airports for the transport of European same day shipments reduces transport times to and from Poland and to cross-border destinations. It also created more flexible cut-off times and led to the partial or in some cases even complete elimination of transit flights via Frankfurt or Munich that were once necessary.
"The cooperation with LOT Polish Airlines offers our customers greater flexibility as well as an increased frequency for flights to and from Poland," says the Country Manager of time:matters Poland. "The new partnership provides us with a considerable advantage in terms of time and enables significantly later cut-off times, which is highly beneficial for our customers," he adds.
The Director of Cargo and Mail at LOT Polish Airlines, emphasises: "We are pleased to have gained a partner such as time:matters, which specializes in same day services. This addition to our portfolio represents a considerable added value for our customers."
May - time:matters and Jetpak, said to be the Nordic market leader for time-critical express logistics solutions, recently announced the development of a joint flight network specifically for the transport of time-critical spare parts.
"This represents a clear advantage over the previously independent networks, as customers benefit from an expanded network that includes additional destinations, a significantly extended area for pick-ups and deliveries as well as shortened delivery times," claimed time:matters.
According to time:matters, which is 48% owned by German carrier Lufthansa Cargo, the two partners' new "dense and high-frequency in-night network" connects Central European commercial centres with northern European points such as Stockholm, Oslo, Copenhagen and Helsinki, as well as remote areas like Hammerfest in northern Norway or Oulu in northwest Finland.
"With points of departure such as Maastricht, Erfurt and Baden (Karlsruhe), there are now excellent opportunities to provide fast service from the Benelux region and all of Germany for customers with delivery needs throughout the Nordic countries. Furthermore, due to time:matters service to and from Italy, it is also possible to provide in-night transport and delivery services from northern Italy to the Nordic region."
The German company continued: "Time-critical spare parts can thus be transported during the night from a spare parts warehouse (European Distribution Centres) to their destination within as little as 12 to 14 hours. The service also enables the latest possible pick-up (up to 7pm) and the earliest possible drop-off times (from 7am), for example by using designated pick-up and drop-off points (PuDos).
"Therefore, it is for example possible to ensure that a component, which is urgently needed for the repair of a defective magnetic resonance tomograph in Falun, central Sweden, is picked up at the spare parts warehouse near Frankfurt, Germany at 6:30pm and is already at the respective clinic's disposal at 8am the next morning."
March -time:matters, formed a partnership with Belgian carrier Brussels Airlines. The latter was based in Brussels-Zaventem and had an extensive international route network.
Germany-based time:matters stated that through the new partnership, it could draw on additional flights to European destinations such as Munich, Zurich or Brussels for the transport of its sameday shipments. It could now access 852 additional direct flights from Brussels to 44 European sameday air stations per week.
"This translates into an increased route frequency that enables time:matters to offer its customers an even more comprehensive sameday service, due to greater flexibility when selecting the fastest connections and the significant reduction of transport times," claimed time:matters.
The special logistics provider said the expansion of the sameday route network benefitted its customers in Belgium and throughout the rest of Europe. "The use of Brussels Airport as an additional hub for the transport of European sameday shipments also in part significantly reduces transport times to and from Belgium as well as to cross-border destinations. Therefore, a sameday shipment from Warsaw to Maastricht can be flown via Brussels, instead of via Frankfurt and Amsterdam, as was previously the case. This in turn decreases the transport time by two hours to merely four hours."
Time:matters added that the partnership was also a great advantage in terms of the direct connections that Brussels Airlines flew to from its headquarters in Brussels, "which completely eliminate transit flights via Frankfurt or Munich that were previously necessary".
2008
September - time:matters opened a branch office in Belgium.
The branch concerned was located in Mechelen, a city halfway between Brussels and Antwerp. time:matters, which was headquartered in Neu-Isenburg near Frankfurt am Main, said that with the establishment of the new Belgian branch, it was represented in six European countries - Germany, Belgium, Austria, Switzerland, Poland and the Netherlands. In addition, the organisation operated a branch office in Singapore which was responsible for the Asia Pacific region.
The company said it saw demand for its transport solutions for extremely time-critical shipments in the Belgian market arising mainly in the automotive, high-tech and pharmaceutical and life science industries.
"Shipments throughout Europe and beyond can be transported and delivered 'sameday', meaning that very same day," stated time:matters. In order to achieve that, continued the logistics service provider, the company could draw on its dense 'Air-Rail-Road transport network' which numerous partners belonged to − for example airlines such as Lufthansa, Swiss or Air Berlin and rail organisation Deutsche Bahn.
"Due to this network, important spare parts for car manufacturing can, for example, successfully be delivered from Vigo (Spain) to the Belgian city of Brussels within four hours, where they arrive just in time to prevent production from coming to a standstill at a car assembly plant."
August - International courier, sameday and emergency logistics service provider time:matters announced that it had gained Siemens Healthcare (Erlangen, Germany), a business unit of Siemens AG, as a customer for the time-critical spare parts logistics segment. The logistics provider, part of German airline group Lufthansa, said it had entered into a cooperation agreement with retroactive effect from April 1, 2008.
As part of that agreement, continued time:matters, it had taken on spare parts supply in Scandinavian countries as well as in Italy for Siemens Healthcare, one of the world's largest suppliers to the healthcare industry. "Siemens Healthcare manufactures and distributes a wide range of live-saving and vital high-tech equipment for clinics and doctors' offices - such as diagnostic systems and therapy equipment, but also complete IT solutions," explained time:matters.
The logistics company said that following Fujitsu Siemens Computers, time:matters had within a short time been able to gain another corporate customer from the Siemens Group for its logistics services. "For instance, time:matters maintains a special 'in-night network' for Siemens Healthcare which ensures that spare parts for sensitive medical equipment can be transported overnight from the spare parts warehouse to the place that they are needed - within 12 to 14 hours," it stated.
"Therefore, it is, for example, possible to ensure that a component, which is urgently needed for the repair of a defective magnetic resonance tomograph, is picked up at the spare parts warehouse at 1830 hours and is already at the respective clinic's disposal at 0800 hours the next morning. In addition to the 'in-night service', other services can also be implemented and are selected according to the individual needs of each specific case of application."
July - Time:matters, the special service provider for courier, sameday and emergency logistics which is part of Lufthansa, announced that it had gained Fujitsu Siemens Computers GmbH (Munich) as a customer for the 'time-critical spare parts logistics' segment.
The logistics provider said that following the successful completion of a pilot phase that started in December 2007, it had taken on Fujitsu Siemens Computers' time-critical spare parts supply for areas of Europe, with effect from April 1 this year. It described Fujitsu Siemens Computers as the leading European IT infrastructure provider and market leader in Germany..
Time:matters said its established special speed solutions for especially urgent or particularly important shipments had served as the basis for logistics solutions that were adapted specifically for Fujitsu Siemens Computers.
A combination of road and air transport would be utilised for the high-speed transport of urgently needed spare parts from the central warehouses in Germany to Fujitsu Siemens Computers operations at German and European destinations.
The service allows for a multitude of different types of solutions as they are needed for various distinct situations: it therefore arranges customers according to zip code area or a specific time for each individual place of delivery, which represents the latest possible delivery time. One of the main service elements of the logistics solution is the option to, within Europe, combine an extremely late pick-up of the spare part in the evening with a particularly early delivery the next morning.
June - Lufthansa Group courier, sameday and emergency logistics provider time:matters opened a branch office in Singapore.
The new operation, time:matters (Asia Pacific) Ltd, would serve as the organisation's headquarters in east and southeast Asia as well as for the Pacific area and would be accountable for on-site customer service. Following the establishment of European branches in Switzerland and Austria, Poland and the Netherlands, the new site in Singapore was time:matters' first Asian branch office. Up to now, the company had been represented locally by sales agents from German parent company Lufthansa Cargo in more than 20 Asian cities. The company said the number of time:matters' own offices on the Asian continent would be increased in the coming months.
"With the establishment of the branch office in Singapore, time:matters is taking into account that the need for extremely fast, yet at the same time highly reliable, logistics solutions is increasing worldwide − especially on intercontinental routes - which particularly applies to the Asia-Pacific region," stated the company.
"Manufacturing processes that are characterised by the increasing outsourcing of individual production steps as well as the continual reduction of storage, also cause logistics − especially in the Asia-Pacific area − to be faced with new challenges with regards to speed and punctuality. time:matters orients itself towards these requirements."
January - time:matters, part of German airline group Lufthansa, was continuing its strategy of internationalisation with the takeover of Dutch express logistics provider JNE. Effective during January, 100% of the shares in JNE Netherlands BV had been transferred to Time:matters Holding GmbH although no details of the financial side of the deal were being made public.
As a result of the acquisition, the founder and former owner of JNE, Ben Hofs, had been appointed managing director of the new Dutch Time:matters subsidiary. He would be assisted by the co-managing director, Dr Arne Schulke, chief financial officer of the German Time:matters Holding. All the employees of JNE had been taken over by the new company.
Whereas previously the expansion concentrated on organic growth in the form of the setting up of its own sales offices and subsidiaries (2006: first foreign subsidiary in Zurich; 2007: further dependencies in Shanghai, Vienna and Warsaw), Time:matters had now taken over an established company for the first time.
The integration of the Benelux countries in the Time:matters network was an important step in the frame of its internationalisation. The region, in which, for example, numerous European distribution centres had been established, provided great potential for time-critical replacement parts logistics - a segment, which was increasingly gaining in importance for Time:matters.
2007
January - It was announced that Buchanan Capital Partners had taken out a majority stake in time:matters, a wholly-owned subsidiary of Lufthansa Cargo AG. The new ownership structure is designed to expedite the expansion of the company, which specialises in express logistics services. Neither company has disclosed details of the transaction.
Since its spin-off from Lufthansa Cargo in 2002, time:matters GmbH has grown profitably, posting two-digit increases in yearly revenues. To finance further growth, Lufthansa sought an equity partner willing to invest in the company in the framework of a buyout. Lufthansa Cargo re-invested in a 49% stake in the logistics specialist.
Major Contracts Listing
Information Systems
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ASTRIT
Name: ASTRIT Vendor: Description: Allows the customer to check on the status of shipments and any td.Services that have been booked with a phone call - via ASTRIT, a computerised telephone information service. An e-mail or fax – whichever is preferred – with an up-to-the-minute status report.Capabilities: - information about shipment and td.Services
- additional menu options (repeat function, request for booking information)
- possibility to authorise and thus make bundled inquiries concerning individual AWB lists
- automatic forwarding of lists to e-mail address or fax number
- information about shipment and td.Services
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TrackIT
Name: TrackIT Vendor: Description: Technology to enable tracking of shipments.
Capabilities: - enter AWB number for immediate access to standard information.
- personalised tracking via myCargo provides further information to help with subsequent planning.
- enter AWB number for immediate access to standard information.
Regions
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Africa Other Related Countries
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Asia Pacific Related Countries Other Related Countries
Asia Pacific: 2011 News2011
October - Lufthansa Cargo resumed MD-11 freighter to Singapore.
On Tuesdays, the MD-11 freighters would stop off in Mumbai before flying on to Singapore. On the return flight to Frankfurt, they would call at Dhaka in Bangladesh and again in India - this time in Delhi. On Fridays, the flight from Frankfurt stops off in Cairo, Egypt, and in Sharjah, the United Arab Emirates. On Sunday, the way leads back over Dhaka and Delhi to Frankfurt.
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Australia
Australia: 2008 News2008
November - Qantas reported last week that it had entered a Deed of Settlement with the Australian Competition and Consumer Commission (ACCC) to settle its liability in Australia resulting from price fixing conduct within its freight division and had agreed to pay a fine of A$20m.
The Australian carrier said the settlement with the ACCC followed its settlement in the US in late 2007. Qantas CEO Geoff Dixon said the agreement, once accepted by the Federal Court, settled the liability in Australia for the airline and all its current employees.
"Qantas is one of the first airlines to settle its liability in Australia. Qantas apologises unreservedly for the conduct of the employees involved. All Qantas employees are expected to comply with the law and we take any failure to comply very seriously," continued Dixon.
"Since being advised of the allegations in May 2006, Qantas has cooperated fully with investigations by the ACCC and all other relevant antitrust regulators. Similar investigations, involving more than 30 other airlines, continue in Europe and other jurisdictions and could take another two years to complete. Qantas will continue to cooperate with the ACCC and other antitrust regulators on these investigations." Dixon explained that the illegal conduct had involved the imposition of fuel surcharges in the international air cargo market between 2000 and 2006, pursuant to a methodology initially created and published by the International Air Transport Association (IATA) and subsequently published by Lufthansa Cargo and other carriers.
"Antitrust immunity was sought by IATA for industry-wide imposition of the same surcharge. The immunity was subsequently refused. However, the industry continued to impose the surcharge," added Dixon.
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Bangladesh
Bangladesh: 2011 News2011
April - Lufthansa Cargo was expanding its route network in Asia and offering its customers a new service to Bangladesh; connecting Frankfurt with once-weekly flights to Dhaka. The flights to the capital of Bangladesh, on Wednesdays, would be operated by a Lufthansa Cargo MD-11 freighter.
"Bangladesh has assumed growing importance as a production base for the international fashion industry. Our direct flights to and from Dhaka will shorten the transport time for customers and link them into Lufthansa Cargo's global network," noted the Regional Director South Asia and Middle East of Lufthansa Cargo.
The flight would leave Frankfurt on Wednesdays at 01.40 hours, arriving in Dhaka at 19.10 hours after a stopover in Mumbai. The return flight from Dhaka would leave on Wednesdays at 22.15 hours and was scheduled to land in Frankfurt at 06.00 hours on Thursdays after a brief stop in Delhi.
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China
China: 2012 NewsMarch - The Chinese airline Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations of its fleet of six Boeing 747-400Fs earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company.
The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.
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Hong Kong
Hong Kong: 2007 News2007
March - GAC Hong Kong signed a one-year capacity purchase agreement with Lufthansa Cargo for the movement of cargo between Hong Kong and Europe.
Under the agreement, GAC Hong Kong would be assured space allocation and more competitive rates from Lufthansa Cargo, increasing its weekly capacity. In return, GAC would commit to transporting airfreight cargo on the airline.
The agreement was secured by GAC Hong Kong and GAC's Global Purchasing Unit (GPU) based in Thailand.
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India
India: 2011 News2011
May - Lufthansa Cargo announced that its pharmaceutical hub for temperature-sensitive airfreight had begun operations at Hyderabad Airport in India.
"With the certification of the key stations for cold-chain transport in our network we are strengthening our commitment to transporting temperature-sensitive shipments," said the Senior Manager Global Key Accounts Temperature Control at Lufthansa Cargo. "In parallel to the certification process, we are further expanding our own fleet of cold-chain containers in Hyderabad."
In December last year, Lufthansa Cargo and the operator of Hyderabad Airport, the GMR Group, announced plans to jointly develop the airport into the key hub in South Asia for the transport of temperature-sensitive pharmaceuticals.
The first two cold-chain transports from Lufthansa Cargo's new pharmaceutical hub in Hyderabad carried consignments from the Dr. Reddy and Gland Pharma pharmaceutical groups. The temperature-sensitive medicines were transported to Philadelphia and Chicago and via Frankfurt aboard a Lufthansa Cargo MD-11.
India: 2007 News2007
June - Lufthansa Cargo was in talks with other carriers beyond Jet Airways over a possible cargo partnership, although the result of establishing a dedicated Indian freighter operation seemed unlikely.
Since late last year Lufthansa Cargo had been in talks with India's Jet Airways, which had for some time been considering launching dedicated cargo services itself.
Lufthansa Cargo claimed to be the Indian cargo leader in terms of frequency and capacity. It served Mumbai, Kolkata, Chennai, New Delhi and Hyderabad using 25 dedicated freighters and the belly capacity of its 42 weekly Indian passenger services from Frankfurt and Munich.
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Pakistan
Pakistan: 2010 News2010
September - Lufthansa Cargo is sending a further relief flight to Pakistan. On board the MD-11 freighter are around 23 tonnes of Oral Rehydration Salts for children suffering from diarrhoeal diseases after the disastrous floods. Lufthansa Cargo is making the freighter's capacity available free of charge to UNICEF. Flight LH8456, routed from Frankfurt to Hong Kong, will make an unscheduled stopover in Karachi to off-load the relief supplies. The cargo carrier organised the special flight for UNICEF in cooperation with its Lufthansa Cargo Charter subsidiary, which specialises in ad-hoc transports.
At the end of August, Lufthansa Cargo and its Charter subsidiary sent around 50 tonnes of medical supplies to Pakistan for the United Nations Population Fund (UNFPA). Lufthansa Cargo and UNICEF are planning a further relief flight to Karachi.
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Singapore
Singapore: 2011 News2011
October - Lufthansa Cargo resumed MD-11 freighter to Singapore.
On Tuesdays, the MD-11 freighters would stop off in Mumbai before flying on to Singapore. On the return flight to Frankfurt, they would call at Dhaka in Bangladesh and again in India - this time in Delhi. On Fridays, the flight from Frankfurt stops off in Cairo, Egypt, and in Sharjah, the United Arab Emirates. On Sunday, the way leads back over Dhaka and Delhi to Frankfurt.Singapore: 2008 News2008
June - Lufthansa Group courier, sameday and emergency logistics provider time:matters opened a branch office in Singapore.
The new operation, time:matters (Asia Pacific) Ltd, would serve as the organisation's headquarters in east and southeast Asia as well as for the Pacific area and would be accountable for on-site customer service.
Following the establishment of European branches in Switzerland and Austria, Poland and the Netherlands, the new site in Singapore was time:matters' first Asian branch office. Previously, the company had been represented locally by sales agents from German parent company Lufthansa Cargo in more than 20 Asian cities. The company said the number of time:matters' own offices on the Asian continent would be increased in the coming months.
"With the establishment of the branch office in Singapore, time:matters is taking into account that the need for extremely fast, yet at the same time highly reliable, logistics solutions is increasing worldwide - especially on intercontinental routes - which particularly applies to the Asia-Pacific region," stated the company.
"Manufacturing processes that are characterised by the increasing outsourcing of individual production steps as well as the continual reduction of storage, also cause logistics - especially in the Asia-Pacific area - to be faced with new challenges with regards to speed and punctuality. time:matters orients itself towards these requirements."
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Australia
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Baltic Region Other Related Countries
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Central & Eastern Europe Other Related Countries
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CIS (Commonwealth of Independent States) Related Countries Other Related Countries
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Russian Federation
Russian Federation: 2008 News2008
April - Lufthansa Cargo, AiRUnion and Krasnoyarsk Airport in Russia signed a 'memorandum of understanding' about a strategic cooperation.
"In the document it is agreed that the signatories will together create all operational and commercial prerequisites in order that Lufthansa Cargo can make use of the Siberian airport in Krasnoyarsk as a stopover point for its flights to and from Asia," stated the German carrier.
It said Krasnoyarsk Airport and the service companies operating there had promised to implement corresponding measures and to make the necessary investments. "The measures to be implemented include, among other things, the upgrading of the instrument landing system to the so-called ICAO category II, which makes trouble-free use of the airport possible even in adverse weather conditions. This modernisation should be completed and officially certified by the end of 2008."
Lufthansa Cargo said that within the following five months, all further preparatory work should be completed, so that it would then start regular flight operations via Krasnoyarsk. "Lufthansa Cargo will make several flights to the Siberian airport in June 2008 for test purposes," it added.
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Russian Federation
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Global
Global: 2008 News2008
Lufthansa Cargo expanded its capacity this year, primarily by means of the extended route network at Lufthansa Passenger Airlines and new freighter destinations. Beijing, Mexico and Toronto were included in the flight plan for the first time in 2008, for instance.
In cooperation with the Lufthansa Cargo Charter Agency flights also took place to Curitiba in Brazil. In addition to 19 of its own planes, Lufthansa Cargo also deployed three chartered wide-bodied and two short-haul aircraft in the reporting year.
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Middle East Other Related Countries
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North America Related Countries
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Canada
Canada: 2008 News2008
August - German carrier Lufthansa Cargo announced the planned introduction of non-stop freighter connections to Toronto, Canada, from September.
The airfreight subsidiary of the Lufthansa Group intended to operate twice-weekly MD-11F services to the Canadian metropolis on Lake Ontario offering around 90 tonnes of freight capacity on each flight. The aircraft would return to the carrier's home hub at Frankfurt via Atlanta, US. Lufthansa Cargo added that further Germany-Canada cargo capacity was available in the bellyholds of Lufthansa passenger aircraft on flights to Vancouver, Calgary, Montreal and Toronto.
Lufthansa Cargo added that with the new flights to Toronto, the carrier was again serving a station in Canada with its own freighter service for the first time since 2000. The flight ex-Frankfurt to Toronto will be operated on Tuesdays and Saturdays. Return flights will leave Toronto early on Wednesday and on Sunday morning.
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Mexico
Mexico: 2007 News2007
October - Lufthansa Cargo announced it would in future be operating freighter services to Mexico City. The new route was due to come on stream in January 2008 in the winter flight schedules. At the start of winter services on October 28, the cargo carrier in the Lufthansa Group also increased frequencies to New York, Chicago and the South Korean capital Seoul. It additionally laid on new cargo capacities for its customers to Orlando in the belly hold of Lufthansa passenger aircraft.
Lufthansa Cargo would serve the Mexican capital, pending the granting of traffic rights, twice weekly with MD-11 freighters. Freighter stopovers in Dallas, Texas, would at the same time raise services there to four traffic days weekly.
Customers of Lufthansa Cargo would also in future have access to new freight capacities on Lufthansa passenger aircraft following the inclusion of Orlando in the Lufthansa passenger traffic route network. This new destination in Florida would be served five days a week with the Airbus A330.
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United States
United States: 2012 News2012
January - Lufthansa Cargo announced it had started operating its first-ever flights between Frankfurt and Detroit, Michigan (US). The route connected Germany with the centre of the US automotive industry every Monday (after the beginning of the summer schedule: each Sunday) by an MD-11 freighter in the cargo carrier's fleet. The subsequent return flight would stop off in New York on the way back to Frankfurt.
"The new freighter connection supplements the daily flights operated by Lufthansa passenger aircraft, and offers our customers more capacity and greater flexibility," said the Lufthansa Cargo Vice President The Americas. "The automotive and pharmaceuticals industries, especially, are fuelling the growing demand for fast and reliable transports to and from Detroit."
Starting in March, Lufthansa Cargo planned to expand its Detroit operations to twice per week. This new connection was the seventh destination served by the cargo airline's freighter network in the US. Along with the services operated by the Lufthansa passenger business, direct flights were now available to 17 airports in the US.
United States: 2011 News2011
September - DHL Global Forwarding acquired Lufthansa's 50% ownership in joint venture company LifeConEx. The end–to–end life sciences cold chain logistics provider was now a 100% DHL subsidiary.
"After running the innovative specialised logistics service together for six years, DHL Global Forwarding and Lufthansa Cargo agreed that a change in ownership would best prepare LifeConEx to further grow its market position" stated Roger Crook, CEO of DHL Global Forwarding and Freight, and Deutsche Post DHL Board Member sponsor for the Life Sciences & Healthcare Sector.
Established in 2005, the joint venture became the global leader in its niche market. DHL would utilise its global presence to leverage LifeConEx's capabilities and expand its cold chain services. While furthering its cooperation with Lufthansa, DHL would also maintain LifeConEx's neutrality in carriers, forwarders and packaging providers. This investment also supported Deutsche Post DHL's 2015 group and Life Sciences sector strategy.
David Bang, CEO of LifeConEx would continue to lead the company and was committed to overseeing the ownership transition for continued development and success.
June - Lufthansa Cargo began operating twice weekly MD-11 freighter flights (Thursday and Saturday) to Houston, USA from its hub in Frankfurt, Germany.United States: 2008 News2008
November - US-based Unisys Corporation announced last week that Lufthansa Cargo would join Unisys-operated Cargo Portal Services (CPS), a leading electronic booking and shipment management service for the air cargo industry.
Unisys said the German carrier's participation in CPS will give its air cargo clients a free, web-based facility to manage bookings through a neutral portal.
"We are now able to offer our clients the choice to manage their shipments online via the CPS platform," stated Lufthansa Cargo.
"We know that our freight forwarder clients want a choice of channels on which to make electronic bookings and that there is a strong demand for Lufthansa Cargo to be online via the shipment booking portal CPS."
CPS was an electronic booking and Cargo 2000-accredited shipment management service for the air cargo industry. It was designed in cooperation with major carriers and forwarders and was operated by Unisys.
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Canada
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Scandinavia Related Countries Other Related Countries
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Norway
Norway: 2008 News2008
October - Following the recent opening of a fifth European office in Belgium, German international logistics company time:matters announced the addition of two more foreign branches.
The Lufthansa Group courier, sameday and emergency logistics service provider, which focuses particularly on the medical technology, high-tech, engineering and automotive industries, said the new offices were located in the Italian economic metropolis of Milan and the Norwegian capital Oslo.
"Within the scope of its internationalisation strategy that was introduced two years ago, time:matters is, in addition to its German headquarters, now represented in seven European countries with branch offices: Austria, Switzerland, Poland, the Netherlands, Belgium, Italy and Norway," it stated. "Furthermore, the company operates a branch in the city state of Singapore and an office in Shanghai, China, which are responsible for its activities and customer relations in the Asia Pacific region."
Time:matters said the two new foreign offices combined the company's special expertise in the international time-critical spare parts logistics area and that growth segment was currently the focus of its business operations in both Italy and Norway.
"In addition to spare parts services, we naturally also offer our customers in Italy and Norway sameday services and emergency logistics solutions," added time:matters.
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Norway
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South America Related Countries Other Related Countries
South America: 2009 News2009
August - Lufthansa Cargo added a range of destinations in the USA and southern Europe to its network. The network extension includes Athens, Greece and the airline had commenced. a once-weekly flight on Thursdays ex Frankfurt using an MD-11F. From there, it would fly via Mumbai to Hong Kong.
In addition, the routing Frankfurt - Istanbul - Frankfurt would be served five times a week after a short stoppage and on Saturdays, an additional stopover in Athens would be implemented. The A300F freighter used offers a capacity of 40 tonnes. As previously it would continue serving Athens with belly capacities on Lufthansa passenger aircraft and ad–hoc road services from Frankfurt and Munich Airports.
From 20 August, Lufthansa would launch twice-weekly flights out of Frankfurt to Seattle on the US West Coast on Thursdays and Saturdays. They would be routed through Seattle en-route to Los Angeles.
Additionally Lufthansa Cargo was expanding its services to South America with a daily connection to Viracopos/Brazil. New flights on Mondays would also be available to Bogota/Colombia, raising the frequencies to the southern coast of South America to thrice-weekly. An additional second stopover weekly in Curitiba would come into the timetable from August.
Finally Lufthansa Cargo would be offering a once a week connection to the Mexican city of Guadalajara (GDL). The flight would operate from Frankfurt via Dallas/Fort Worth (DFW) to Guadalajara and again via Dallas back to Frankfurt.
"The newcomers to the network in Europe, the USA, South and Middle America will strengthen the position of Lufthansa Cargo in those markets and offer our customers attractive connections to strong growth regions," commented the Senior Vice President Network and Product Management at Lufthansa Cargo AG. "Moreover, they show how fast and flexibly we are harnessing opportunities in a difficult market environment so as to emerge from the crisis as a reliable and future-proof partner for our customers."
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Brazil
Brazil: 2008 News2008
July - German carrier Lufthansa Cargo increased its capacity ex-Frankfurt to the Brazilian metropolis of Curitiba. An established flight on Saturdays, introduced last October, had been augmented with an additional connection at 2240 hours on Wednesdays. It would be operated with a B747-400 freighter by World Airways.
The freighter connections to Curitiba were run jointly by Lufthansa Cargo and its Lufthansa Cargo Charter (LCC) subsidiary, which charters the air freight capacity. The Saturday flight from Frankfurt via Sao Paulo/Viracopos was marketed by Lufthansa Cargo, while LCC was responsible for the route ex-South America. The additional routing to Curitiba on Wednesdays is marketed entirely by Lufthansa Cargo.
"We are delighted to be offering customers, in cooperation with Lufthansa Cargo Charter, a regular service to Curitiba and, simultaneously, further expanding our strong position in South America," stated Lufthansa Cargo.
Lufthansa Cargo additionally served the South American market with its own freighter flights to Buenos Aires and Sao Paulo/Viracopos, as well as with belly capacity on Lufthansa passenger aircraft flights to Sao Paulo/Guarulhos, Caracas and Buenos Aires.
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Brazil
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Western Europe Related Countries Other Related Countries
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Austria
Austria: 2010 News2010
February - Lufthansa Cargo and Austrian Airlines had agreed to step up cooperation between their two companies in the airfreight sector. Under the new agreement, the flow of cargo traffic through the hubs at Frankfurt, Munich and Vienna would be optimised. Both companies' global distribution activities would be merged and their product portfolios and production processes harmonised.
In future, the two companies would jointly route their cargo traffic through the Vienna hub which would boost freight flows. Lufthansa Cargo and Austrian Cargo would also integrate their freight handling and distribution activities in Austria. In all other countries worldwide, freight activities would in future be amalgamated under the aegis of Lufthansa Cargo.
The CEO and Chairman of Lufthansa Cargo, commented: "Vienna Schwechat will become a central European hub for Lufthansa Cargo - comparable to our German hubs at Frankfurt and Munich. Thanks to Austrian's excellent route network, Lufthansa Cargo customers will also be able to take advantage of direct flights to destinations in all corners of the globe."
The Chief Commercial Officer Austrian Airlines, noted: "This marks a further step in the reorganisation of Austrian Airlines. Our cargo business will benefit from the new structure. We will lower our costs and improve our product portfolio. At the same time, we will be able in future to provide our customers with a globe-spanning network and the extensive product portfolio of the world's largest air cargo alliance."
The measures will take effect on 1 July 2010.
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Belgium
Belgium: 2012 News2012
March - Lufthansa would most likely not buy the remaining 55% of Brussels Airlines this year, chairman and CEO Christoph Franz revealed.
Franz said, “Our strategic commitment is clear, but we are not in a hurry to exercise our call option. We still have another two years to do so. At this point of time the priority is on our bottom line.”
In September 2008, Lufthansa bought 45% of Brussels Airlines parent company, SN Airholding for €65m via a capital increase. As part of the agreement, Lufthansa has an option of acquiring the remaining 55% from 2011. The option could be exercised during three weeks in April.
Franz also confirmed that “if necessary we will offload more loss-making airlines in our portfolio. We started to offload loss-making carriers last year, with the sale of bmi to IAG, we closed Lufthansa Italia and withdrew from Jade Cargo.”Belgium: 2009 News2009
March -time:matters, formed a partnership with Belgian carrier Brussels Airlines. The latter was based in Brussels-Zaventem and had an extensive international route network.
Germany-based time:matters stated that through the new partnership, it could draw on additional flights to European destinations such as Munich, Zurich or Brussels for the transport of its sameday shipments. It could now access 852 additional direct flights from Brussels to 44 European sameday air stations per week.
"This translates into an increased route frequency that enables time:matters to offer its customers an even more comprehensive sameday service, due to greater flexibility when selecting the fastest connections and the significant reduction of transport times," claimed time:matters.
The special logistics provider said the expansion of the sameday route network benefitted its customers in Belgium and throughout the rest of Europe. "The use of Brussels Airport as an additional hub for the transport of European sameday shipments also in part significantly reduces transport times to and from Belgium as well as to cross-border destinations. Therefore, a sameday shipment from Warsaw to Maastricht can be flown via Brussels, instead of via Frankfurt and Amsterdam, as was previously the case. This in turn decreases the transport time by two hours to merely four hours."
Time:matters added that the partnership was also a great advantage in terms of the direct connections that Brussels Airlines flew to from its headquarters in Brussels, "which completely eliminate transit flights via Frankfurt or Munich that were previously necessary".Belgium: 2008 News2008
September - Time:matters this month opened a branch office in Belgium.
The branch concerned was located in Mechelen, a city halfway between Brussels and Antwerp. Time:matters, which was headquartered in Neu-Isenburg near Frankfurt am Main, said that with the establishment of the new Belgian branch, it was now represented in six European countries − Germany, Belgium, Austria, Switzerland, Poland and the Netherlands. In addition, the organisation operated a branch office in Singapore which was responsible for the Asia Pacific region.
The company said it saw demand for its transport solutions for extremely time-critical shipments in the Belgian market arising mainly in the automotive, high-tech and pharmaceutical and life science industries.
"Shipments throughout Europe and beyond can be transported and delivered 'sameday', meaning that very same day," stated time:matters. In order to achieve that, continued the logistics service provider, the company could draw on its dense 'Air-Rail-Road transport network' which numerous partners belonged to − for example airlines such as Lufthansa, Swiss or Air Berlin and rail organisation Deutsche Bahn.
"Due to this network, important spare parts for car manufacturing can, for example, successfully be delivered from Vigo (Spain) to the Belgian city of Brussels within four hours, where they arrive just in time to prevent production from coming to a standstill at a car assembly plant."
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Germany
Germany: Summary2009
Most of the cargo transported goes through the main hub, the Lufthansa Cargo Center at Frankfurt Airport. Another hub for freighter traffic is Leipzig/Halle Airport. The airport's significance will go up again in 2009 when AeroLogic GmbH commences operations there.Germany: 2007-2008 News2008
June - Lufthansa Cargo laid the foundation stone for a new freight centre in CargoCity South, Frankfurt Airport. The new 'Lufthansa Cargo Service Centre', which would have warehouse capacity of about 20,000 sq m and more than 8,000 sq m of office space, was designed to augment the German carrier's existing 'Lufthansa Cargo Centre' in Frankfurt's CargoCity North area.
Lufthansa Cargo said the new handling facility, which was scheduled to commence operations in autumn 2009, would principally handle mail shipments from medium-sized forwarders and partner airlines. Simultaneously, it would accommodate the German and the European sales organisations of Lufthansa Cargo, which were previously housed in Kelsterbach.
The new facility signally affirms Lufthansa Cargo's commitment to its home base in Frankfurt/Main, Europe's biggest cargo airport. Once the legal go-ahead for a final ruling on practicable night-flight arrangements was obtained, it would press ahead firmly with plans for building a new Lufthansa Cargo Centre in the north of the airport.
2007February - Lufthansa Cargo Center Manager announced that the Lufthansa Cargo Center at Frankfurt Airport posted a new transhipment record in the 2006 business year. During the year, the centre handled shipments totalling about 1.58m tonnes, an increase of around 4.5% on the previous year.
In total, about 2.1m individual shipments passed through the Lufthansa Cargo Center in CargoCity North in the twelve months. Those shipments were moved into and out of Frankfurt Airport on aircraft operated by Lufthansa Cargo and its partners, in the belly holds of Lufthansa passenger aircraft and within Europe also by trucking services.
The Lufthansa Cargo Center (LCC) was opened in 1982. It is one of the world's biggest airfreight transhipment centres. About 80% of all shipments airfreighted by Lufthansa Cargo pass through the hub.
At Lufthansa Cargo the trend experienced in previous months continued. In January, the company transported 123,000 tonnes of freight and mail, 3.1% less than a year earlier. However, the cargo load factor increased by 1.3 percentage points to 64.9%. Optimisation of the cargo network and the expiry of the cooperation agreement with US Airways reduced available capacity by 5.1%, while sales remained about 3.2% below the prior-year level.
January - the Lufthansa Group airlines reported a 3.1% rise in passenger numbers year-on-year to 3.6m. Capacity was increased by 2.6%, while sales grew by 0.8%.Germany: 2011 News2011
December - Lufthansa Cargo begun operations at its new facility for temperature-sensitive freight in Frankfurt, Germany. The Lufthansa Cargo Cool Centre was built in the space of just six months.
The facility was equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 sq m. From now on, all temperature-controlled shipments carried by the airline in Frankfurt would pass through the new facility.
The Board Member Product and Sales, said: "Our Cool/td product is assuming ever-increasing importance for Lufthansa Cargo thanks to growth rates of 15%. The Lufthansa Cargo Cool Center will enable us to ship temperature-controlled freight faster, more reliably and more efficiently at our Frankfurt hub, and further expand our position as a leading provider of cool transports."
Lufthansa Cargo earmarked substantial capital expenditure last year in the Cool/td product. Besides investing in the development of the Opticooler, the industry's most efficient cooling container, the cargo carrier commenced operations at its first international pharmaceutical hub at Hyderabad in India.
October - Lufthansa Cargo underlined its fears regarding the consequences ensuing for the international logistics industry from the provisional night-flight ban placed upon Frankfurt Airport from October 30, 2011 by a regional court.
Following the ruling from the administrative court in Hesse, issued a few days before the introduction of Lufthansa's winter flight schedules, the company had put together an emergency timetable for the period after October 30. A number of flights had had to be relocated to daytime slots or to the early and late hours of the day.
Individual connections – to China, for example – had been cancelled entirely. Other flights bound for China would have to stop over at Cologne/Bonn Airport for several hours after an evening departure from Frankfurt so as to fly on, as originally planned, at night-time in the direction of the Far East. "We will be operating in future with unnecessary take-offs and landings, which will lead to more noise, higher fuel consumption and more costs running into millions," commented Lufthansa Cargo Chairman.
Furthermore from January, at least one MD-11 freighter was to be transferred from Frankfurt to Cologne/Bonn Airport. The freighter would operate the overnight flights for the German logistics industry to North America, which could no longer be guaranteed from Frankfurt because of the night-flight ban.
Lufthansa Cargo believed the provisional night-flight ban in Frankfurt was a drastic signal for the German logistics industry. He emphasised: "As export world champion, Germany is reliant on dependable connections to ship air freight to destinations around the globe. Frankfurt Airport plays in that respect a highly important role, since around 40% of German exports is transported by air."
The company said that it was hoping that the Federal Administrative Court in Leipzig (the supreme court of appeal) would allow a minimum of necessary night flights in its final ruling.
October - The fourth runway at Frankfurt airport was opened, yet what Frankfurt’s owners and customers had hoped to be a useful improvement to capacity had ballooned into a major crisis for the airport’s cargo operations. At 2.8 km the new runway would be shorter than the existing facilities and was designed to serve smaller short-haul traffic. Part of the 'Expansion 2020 program', it was the first major part of a development that would also see a new terminal and new cargo handling facilities by 2016. The taxi-ways to the new runways would also include a bridge over the neighbouring motorway and another over a high-speed railway.
In order to get this programme past protesting local residents and environmental pressure groups, Fraport, the airport's owner, agreed to certain conditions including greater restrictions on night-flights. The residents and pressure groups who continued to dispute the airport expansion had now won a court order banning all night-flights from Frankfurt citing this agreement. The court judgement enacting a ban, which was issued on the 11th October was temporary until the case could be concluded in a higher court in 2012. In the meantime all flights between 23.00 and 05.00hrs would be prohibited from the 30thOctober.
The immediacy of this decision had dealt a blow to Lufthansa Cargo in particular. It had been forced to adopt emergency winter schedules including scrapping two flights a week to China and even flying freighters to neighbouring, less regulated German airports during the day in order for them to take off for their final destinations during the night. Such had been the disruption that Lufthansa's CEO had even suggested that the new runway should not be opened, circumventing the ban on night flights.
It was unclear what effect this ban would have on air cargo traffic in Europe. Frankfurt was Europe's largest air cargo hub, although belly freight operations would be affected less as there was no restriction on day-time flights. Presumably it would be the freighters and particularly those operating to China and Central Asia that would be affected most. This was all the more painful for Lufthansa as this was a route which they had made particular efforts on. There would be those who benefit from what was likely to be a major – if presumably temporary – restructuring of air freight logistics in Europe. Neighbouring airports in France, the Netherlands but also possibly the new Leipzig-Halle facility which was home to the AeroLogic Lufthansa - DHL joint venture, could see more business. Of even greater threat was the ability of Dubai and the smaller Gulf airports to jump in and grab some trans-shipment business from Frankfurt.
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Italy
Italy: 2008 News2008
October - Following the recent opening of a fifth European office in Belgium, German international logistics company time:matters announced the addition of two more foreign branches.
The Lufthansa Group courier, sameday and emergency logistics service provider, which focuses particularly on the medical technology, high-tech, engineering and automotive industries, said the new offices were located in the Italian economic metropolis of Milan and the Norwegian capital Oslo.
"Within the scope of its internationalisation strategy that was introduced two years ago, time:matters is, in addition to its German headquarters, now represented in seven European countries with branch offices: Austria, Switzerland, Poland, the Netherlands, Belgium, Italy and Norway," it stated. "Furthermore, the company operates a branch in the city state of Singapore and an office in Shanghai, China, which are responsible for its activities and customer relations in the Asia Pacific region."
Time:matters said the two new foreign offices combined the company's special expertise in the international time-critical spare parts logistics area and that growth segment was currently the focus of its business operations in both Italy and Norway.
"In addition to spare parts services, we naturally also offer our customers in Italy and Norway sameday services and emergency logistics solutions," added time:matters.
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Spain
Spain: 2006 News2006
June - Lufthansa signed an agreement with AirMadrid to market and manage the cargo operations of the Spanish airline.
Founded in 2003, AirMadrid has operated an extensive network between Spain and destinations in Argentina, Chile, Brazil, Columbia, Mexico, Costa Rica, Panama and Ecuador. It also had limited services within western and central Europe. AirMadrid planned to add São Paulo, Miami, Los Angeles and London to its route network and to raise frequencies on its existing routes to Buenos Aires, Rome and Paris.
As part of the cooperation agreement, Lufthansa Cargo planned to open five new handling stations in Latin America.
Lufthansa has alliances with two other small airlines: Condor and Spanair. It has also entered into a joint venture in China for air cargo, called Jade Air.
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Switzerland
Switzerland: 2006-2007 News2007
January - the cargo division of Swiss International Air Lines, Swiss WorldCargo, chose Mercator, a supplier of IT solutions to the global air transport industry, to develop and implement a comprehensive 'Next Generation' suite of systems.
Swiss WorldCargo is the air freight division of Swiss International Air Lines AG, which was acquired by Lufthansa in 2005.
2006 October - it was announced that time:matters, the courier, sameday and emergency logistics subsidiary of Lufthansa Cargo, had extended its sameday service between Switzerland and the EU. The company opened its own branch office in Zurich and it also cooperates with Swiss WorldCargo, which acts as a transport and distribution partner.
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United Kingdom
United Kingdom: 2012 News2012
April - Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways. The completion of the sale took place after close of business on April 19, 2012. The purchase price amounted to £172.5m (€207m).
As price adjustments were agreed as part of the transaction structure, the net purchase price would be determined at the end of the second quarter 2012, at which point the final amount would be transferred. It was expected that the net purchase price would be negative. However, the costs of the transaction for Lufthansa would amortise within one year. The gross purchase price was expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme was to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme would be offset to a large extent by a one-off contribution from Lufthansa of £84m to a supplementary pension scheme.
On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012. By carrying out the transaction, Lufthansa sold a consistently loss-making company.
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Austria
Vertical Sectors
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Consumer/ Retail
Consumer/Retail: 2009 News2009
October - Lufthansa Cargo and Hermes Transport Logistics announced that they were increasing their level of cooperation. Since early August, Lufthansa had handled the logistics of all incoming shipments arriving at Leipzig Airport for the wholly-owned subsidiary of the otto group. Aside from handling all imports, Lufthansa Cargo was responsible for arranging and loading truck transports to the Hermes bases at Haldensleben und Altenkunstadt. In future, the freight would be flown direct to Leipzig/Halle by Boeing 777 freighters in the fleet of Lufthansa Cargo's AeroLogic joint venture or be trucked by road from Frankfurt to the Hermes bases.
"Our extreme flexibility and deployment of low-emission Boeing 777 freighters make a convincing case," said the Lufthansa Cargo Vice President Handling Germany. "Our network, customised to our customers' requirements, guarantees the fastest connections, high cost-efficiency and a host of synergy effects." Eckhardt Fechtner, General Manager Hermes Transport Logistics, added: "Shorter transit time for shipments and the environmental benefits resulting, among others, from fewer road service transports within Germany are major competitive gains for Hermes Transport Logistics. We are delighted to cooperate with Lufthansa Cargo at our most important distribution centre in Germany."
Hermes Transport Logistics imported more than 14,000 tonnes of airfreight to Germany annually, principally from the Far East. The shipments consist largely of textiles.
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Healthcare/ Pharmaceutical
Healthcare/ Pharmaceutical: 2011 News2011
September - DHL Global Forwarding acquired Lufthansa's 50% ownership in joint venture company LifeConEx. The end–to–end life sciences cold chain logistics provider was now a 100% DHL subsidiary.
"After running the innovative specialised logistics service together for six years, DHL Global Forwarding and Lufthansa Cargo agreed that a change in ownership would best prepare LifeConEx to further grow its market position" stated Roger Crook, CEO of DHL Global Forwarding and Freight, and Deutsche Post DHL Board Member sponsor for the Life Sciences & Healthcare Sector.
Established in 2005, the joint venture became the global leader in its niche market. DHL would utilise its global presence to leverage LifeConEx's capabilities and expand its cold chain services. While furthering its cooperation with Lufthansa, DHL would also maintain LifeConEx's neutrality in carriers, forwarders and packaging providers. This investment also supported Deutsche Post DHL's 2015 group and Life Sciences sector strategy.
David Bang, CEO of LifeConEx would continue to lead the company and was committed to overseeing the ownership transition for continued development and success.Healthcare/Pharmaceutical: 2008 News2008
August - time:matters announced that it had gained Siemens Healthcare (Erlangen, Germany), a business unit of Siemens AG, as a customer for the time-critical spare parts logistics segment. The logistics provider, part of German airline group Lufthansa, said it had entered into a cooperation agreement with retroactive effect from April 1, 2008.
As part of that agreement, continued time:matters, it had taken on spare parts supply in Scandinavian countries as well as in Italy for Siemens Healthcare, one of the world's largest suppliers to the healthcare industry. "Siemens Healthcare manufactures and distributes a wide range of live-saving and vital high-tech equipment for clinics and doctors' offices such as diagnostic systems and therapy equipment, but also complete IT solutions," explained time:matters.
The logistics company said that following Fujitsu Siemens Computers, time:matters had within a short time been able to gain another corporate customer from the Siemens Group for its logistics services. "For instance, time:matters maintains a special 'in-night network' for Siemens Healthcare which ensures that spare parts for sensitive medical equipment can be transported overnight from the spare parts warehouse to the place that they are needed - within 12 to 14 hours," it stated.
"Therefore, it is, for example, possible to ensure that a component, which is urgently needed for the repair of a defective magnetic resonance tomograph, is picked up at the spare parts warehouse at 1830 hours and is already at the respective clinic's disposal at 0800 hours the next morning. In addition to the 'in-night service', other services can also be implemented and are selected according to the individual needs of each specific case of application."
Logistics markets
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Air Freight
Air Freight: 2012 News2012
April - A German court in Leipzig upheld a night-flight ban at Frankfurt Airport between 11 p.m. and 5 a.m. local time.
The ruling came after a Hessen court ruled in October 2011 that 17 night-flights would be banned when FRA’s fourth runway opened in the same month following resident complaints of aircraft noise from nearby Russelsheim and Offenbach. Lufthansa Cargo operated 10 of those scheduled nighttime slots.
April - Lufthansa completed the sale of British Midland Ltd. (bmi) to International Airlines Group (IAG), the parent company of British Airways. The completion of the sale took place after close of business on April 19, 2012. The purchase price amounted to £172.5m (€207m).
As price adjustments were agreed as part of the transaction structure, the net purchase price would be determined at the end of the second quarter 2012, at which point the final amount would be transferred. It was expected that the net purchase price would be negative. However, the costs of the transaction for Lufthansa would amortise within one year. The gross purchase price was expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme was to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme would be offset to a large extent by a one-off contribution from Lufthansa of £84m to a supplementary pension scheme.
On November 4, 2011, Lufthansa and IAG agreed in principle to the sale of bmi to IAG, prior to a legally binding purchase agreement being signed by both parties on December 22, 2011. The validity of this contract was subject to regulatory approval by the European Commission, which was received on March 30, 2012. By carrying out the transaction, Lufthansa sold a consistently loss-making company.
March - Jade Cargo International, a Lufthansa Cargo/Shenzhen Airlines joint venture that temporarily suspended operations of its fleet of six Boeing 747-400Fs earlier in the month, signed a letter of intent with China’s UniTop Group to restructure the company.
The sale was expected to take two months to complete, and would completely divest Lufthansa Cargo of its 25% stake in the company.
March - Lufthansa would most likely not buy the remaining 55% of Brussels Airlines this year, chairman and CEO Christoph Franz revealed.
Franz said, “Our strategic commitment is clear, but we are not in a hurry to exercise our call option. We still have another two years to do so. At this point of time the priority is on our bottom line.”
In September 2008, Lufthansa bought 45% of Brussels Airlines parent company, SN Airholding for €65m via a capital increase. As part of the agreement, Lufthansa has an option of acquiring the remaining 55% from 2011. The option could be exercised during three weeks in April.
Franz also confirmed that “if necessary we will offload more loss-making airlines in our portfolio. We started to offload loss-making carriers last year, with the sale of bmi to IAG, we closed Lufthansa Italia and withdrew from Jade Cargo.”
March - Lufthansa Cargo offered a new worldwide express service for urgent shipments. The new "Courier. Solutions" service provided the fastest transit and shortest delivery times in the Lufthansa Cargo. The company announced that the service had has no weight limits.
Lufthansa Cargo was offering this new product in cooperation with time:matters, a Lufthansa Cargo Group company that specialised in express logistics services. Customers could drop off their shipment at Frankfurt Airport up to 90 minutes before departure. At various other airports, the minimum drop-off time was one hour before departure. At Frankfurt, the transit time was 60 minutes, while the transfer time at Munich was 50 minutes.
The Vice President Product Management at Lufthansa Cargo said "with the shortest handling times, personal courier accompaniment during transit and round-the-clock, proactive shipment surveillance we can offer the speediest assistance when trade fair items or medicines, for example, are urgently needed on the other side of the world."
March - Lufthansa Cargo announced it was adding a route to Chongqing, China when its summer flight schedule began on March 25. The company was offering flights to 303 destinations in 99 countries.
Chongqing would be served with four flights weekly, operated by Lufthansa Cargo's MD-11 freighters. Other newcomers in the timetable - also thanks to the expansion of the network of Lufthansa passenger services - were Shenyang in northeastern China and Qingdao (Tsingtao) in Shandong province.
Flights to Detroit, US were to be increased to twice-weekly connections. Services to Detroit commenced initially in January with a once-weekly flight in the Lufthansa Cargo freighter network.
In South America, the company was adding twice-weekly MD-11 flights from Frankfurt to Montevideo, Uruguay.
Back in the timetable was Kolkata, India. Flights were operated to the Indian city last summer, but were discontinued in recent months. Once-weekly direct flights from Frankfurt were now available again in the summer flight schedules.
"We have selectively extended our route network and brought new and attractive growth markets into the timetable," noted a Lufthansa Board Member for Product and Sales. "We are expanding our presence in China, the world's biggest airfreight market, and now laying on freighter connections to a total of six Chinese destinations."
January - Lufthansa Cargo was considering replacing its fleet of 18 Boeing MD-11Fs and would decide by 2014 which aircraft to go with, according to chairman and CEO Karl-Ulrich Garnadt.
“We know we have to order more [Boeing] 777Fs and there is no other option,” Garnadt said. Lufthansa Cargo finalised an order for five 777 freighters valued at $1.35bn last spring.
January - Lufthansa Cargo revealed some of its expectations for the year ahead. CEO Karl-Ulrich Garnadt said that he expected no growth in 2012. "Currently we are 10% down compared to last year. The demand is much weaker,” he said.
The company's outlook was much more positive until last October, when it was announced that night flights would be banned at Frankfurt Airport. The ban removed 17 night-flights at the airport, 10 of which were Lufthansa Cargo's, costing the company €20m in profit in 2011. If the ban was contiually upheld in 2011, Lufthansa Cargo anticipated it would lose €40m in profit and a three digit figure in revenue.
Garnadt also remarked that the ban would alter the company's fleet development plans. He said Lufthansa Cargo had planned to lease two more freighters for the coming summer schedule but had “axed” those plans. “If this scenario continues to go in the wrong direction, then we will start to replace some MD-11Fs with the first 777s instead of expanding our fleet."
Garnadt said that if the court reverses the ban, the carrier will “switch some important night flights back to Frankfurt from July.” He said that 50% of Lufthansa Cargo's business was high-value express cargo.
January - Lufthansa Cargo announced it had started operating its first-ever flights between Frankfurt and Detroit, Michigan (US). The route connected Germany with the centre of the US automotive industry every Monday (after the beginning of the summer schedule: each Sunday) by an MD-11 freighter in the cargo carrier's fleet. The subsequent return flight would stop off in New York on the way back to Frankfurt.
"The new freighter connection supplements the daily flights operated by Lufthansa passenger aircraft, and offers our customers more capacity and greater flexibility," said the Lufthansa Cargo Vice President The Americas. "The automotive and pharmaceuticals industries, especially, are fuelling the growing demand for fast and reliable transports to and from Detroit."
Starting in March, Lufthansa Cargo planned to expand its Detroit operations to twice per week. This new connection was the seventh destination served by the cargo airline's freighter network in the US. Along with the services operated by the Lufthansa passenger business, direct flights were now available to 17 airports in the US.
January - Lufthansa Cargo boosted tonnage to record levels in 2011. The cargo airline carried approximately 1.9m tonnes of freight and mail in 2011, an increase of 5% compared to 2010.
The airline raised capacity over the twelve months by 8.6%. The company attributed the increase was to the integration, since the second half of 2010, of the capacities of aircraft in the fleet of Austrian Airlines and the expansion to eight Boeing 777 freighters in the fleet of the AeroLogic joint venture. In an increasingly difficult market environment, Lufthansa Cargo lifted sales of revenue freight-tonne km by 6.5%, so that capacity utilisation reached 69.5%; a slight decline from 70.9% in 2010.
"Especially in our German home market, we made full use of strong export demand to gain market shares. On the other hand, the economic climate in the important Asian airfreight market became increasingly bleak over the course of the year and led to over-capacities and increased competition for all airlines in the airfreight industry," observed the Lufthansa Cargo CEO and Chairman.
"Lufthansa Cargo is excellently positioned in all growth markets. We will stay on our successful course and adjust our capacities flexibly in line with demand," commented Garnadt. Of crucial importance for the company's future, however, is the impending ruling by the highest Federal Administrative Court in Leipzig on the number of permissible night flights in Frankfurt. "Germany profits from a strong and successful airfreight industry, which must not be decoupled for several hours, daily, from global trade flows. A night-flight ban would deal a severe blow to the entire industry and threaten thousands of jobs in Germany, not only in the logistics industry" he concluded.Air Freight: 2011 News2011
December - Lufthansa Cargo begun operations at its new facility for temperature-sensitive freight in Frankfurt, Germany. The Lufthansa Cargo Cool Centre was built in the space of just six months.
The facility was equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 sq m. From now on, all temperature-controlled shipments carried by the airline in Frankfurt would pass through the new facility.
The Board Member Product and Sales, said: "Our Cool/td product is assuming ever-increasing importance for Lufthansa Cargo thanks to growth rates of 15%. The Lufthansa Cargo Cool Center will enable us to ship temperature-controlled freight faster, more reliably and more efficiently at our Frankfurt hub, and further expand our position as a leading provider of cool transports."
Lufthansa Cargo earmarked substantial capital expenditure last year in the Cool/td product. Besides investing in the development of the Opticooler, the industry's most efficient cooling container, the cargo carrier commenced operations at its first international pharmaceutical hub at Hyderabad in India.
October - Lufthansa Cargo resumed MD-11 freighter to Singapore.
On Tuesdays, the MD-11 freighters would stop off in Mumbai before flying on to Singapore. On the return flight to Frankfurt, they would call at Dhaka in Bangladesh and again in India - this time in Delhi. On Fridays, the flight from Frankfurt stops off in Cairo, Egypt, and in Sharjah, the United Arab Emirates. On Sunday, the way leads back over Dhaka and Delhi to Frankfurt.
October - Lufthansa Cargo underlined its fears regarding the consequences ensuing for the international logistics industry from the provisional night-flight ban placed upon Frankfurt Airport from October 30, 2011 by a regional court.
Following the ruling from the administrative court in Hesse, issued a few days before the introduction of Lufthansa's winter flight schedules, the company had put together an emergency timetable for the period after October 30. A number of flights had had to be relocated to daytime slots or to the early and late hours of the day.
Individual connections – to China, for example – had been cancelled entirely. Other flights bound for China would have to stop over at Cologne/Bonn Airport for several hours after an evening departure from Frankfurt so as to fly on, as originally planned, at night-time in the direction of the Far East. "We will be operating in future with unnecessary take-offs and landings, which will lead to more noise, higher fuel consumption and more costs running into millions," commented Lufthansa Cargo Chairman.
Furthermore from January, at least one MD-11 freighter was to be transferred from Frankfurt to Cologne/Bonn Airport. The freighter would operate the overnight flights for the German logistics industry to North America, which could no longer be guaranteed from Frankfurt because of the night-flight ban.
Lufthansa Cargo believed the provisional night-flight ban in Frankfurt was a drastic signal for the German logistics industry. He emphasised: "As export world champion, Germany is reliant on dependable connections to ship air freight to destinations around the globe. Frankfurt Airport plays in that respect a highly important role, since around 40% of German exports is transported by air."
The company said that it was hoping that the Federal Administrative Court in Leipzig (the supreme court of appeal) would allow a minimum of necessary night flights in its final ruling.
October - The fourth runway at Frankfurt airport was opened, yet what Frankfurt’s owners and customers had hoped to be a useful improvement to capacity had ballooned into a major crisis for the airport’s cargo operations. At 2.8 km the new runway would be shorter than the existing facilities and was designed to serve smaller short-haul traffic. Part of the 'Expansion 2020 program', it was the first major part of a development that would also see a new terminal and new cargo handling facilities by 2016. The taxi-ways to the new runways would also include a bridge over the neighbouring motorway and another over a high-speed railway.
In order to get this programme past protesting local residents and environmental pressure groups, Fraport, the airport's owner, agreed to certain conditions including greater restrictions on night-flights. The residents and pressure groups who continued to dispute the airport expansion had now won a court order banning all night-flights from Frankfurt citing this agreement. The court judgement enacting a ban, which was issued on the 11th October was temporary until the case could be concluded in a higher court in 2012. In the meantime all flights between 23.00 and 05.00hrs would be prohibited from the 30thOctober.
The immediacy of this decision had dealt a blow to Lufthansa Cargo in particular. It had been forced to adopt emergency winter schedules including scrapping two flights a week to China and even flying freighters to neighbouring, less regulated German airports during the day in order for them to take off for their final destinations during the night. Such had been the disruption that Lufthansa's CEO had even suggested that the new runway should not be opened, circumventing the ban on night flights.
It was unclear what effect this ban would have on air cargo traffic in Europe. Frankfurt was Europe's largest air cargo hub, although belly freight operations would be affected less as there was no restriction on day-time flights. Presumably it would be the freighters and particularly those operating to China and Central Asia that would be affected most. This was all the more painful for Lufthansa as this was a route which they had made particular efforts on. There would be those who benefit from what was likely to be a major – if presumably temporary – restructuring of air freight logistics in Europe. Neighbouring airports in France, the Netherlands but also possibly the new Leipzig-Halle facility which was home to the AeroLogic Lufthansa - DHL joint venture, could see more business. Of even greater threat was the ability of Dubai and the smaller Gulf airports to jump in and grab some trans-shipment business from Frankfurt.
October - Lufthansa Cargo resumed MD-11 freighter to Singapore.
On Tuesdays, the MD-11 freighters would stop off in Mumbai before flying on to Singapore. On the return flight to Frankfurt, they would call at Dhaka in Bangladesh and again in India - this time in Delhi. On Fridays, the flight from Frankfurt stops off in Cairo, Egypt, and in Sharjah, the United Arab Emirates. On Sunday, the way leads back over Dhaka and Delhi to Frankfurt.
September - Lufthansa's fleet modernisation was continued in with the ordering of
a further twelve aircraft (two Airbus A380s, one A330-300, four A320s, five Embraer 195s).
July - Lufthansa Cargo announced a tonnage increase of 14.8% in the first six months of 2011.
Capacity was up appreciably year on year. Overall, Lufthansa Cargo raised capacity by 19.7%. The increase was, among others, attributable to reactivation of freighters grounded temporarily in the crisis, expansion of the AeroLogic fleet to a total of eight aircraft and the carrier's marketing since July 1, 2010 of the freight capacities at Austrian Airlines.
Almost all the substantially increased capacity was sold in the market so that the load factor ended the first half at 69.1%. Growth was particularly pronounced in the Americas, where tonnage climbed by 19.5%.
"Lufthansa Cargo has harnessed the robust development of the global economy and sustained the growth momentum from the previous year," said the Lufthansa Cargo Chairman and CEO. "We have made our network even more attractive with the addition of new desti-nations and invested to good purpose in the ongoing development of our products. We posted gains especially in the special services we offer customers to meet their specific needs."
June - Lufthansa Cargo began operating twice weekly MD-11 freighter flights (Thursday and Saturday) to Houston, USA from its hub in Frankfurt, Germany.
June - Lufthansa Cargo began operating twice weekly MD-11 freighter flights (Thursday and Saturday) to Houston, USA from its hub in Frankfurt, Germany.
April - Lufthansa Cargo was expanding its route network in Asia and offering its customers a new service to Bangladesh; connecting Frankfurt with once-weekly flights to Dhaka. The flights to the capital of Bangladesh, on Wednesdays, would be operated by a Lufthansa Cargo MD-11 freighter.
"Bangladesh has assumed growing importance as a production base for the international fashion industry. Our direct flights to and from Dhaka will shorten the transport time for customers and link them into Lufthansa Cargo's global network," noted the Regional Director South Asia and Middle East of Lufthansa Cargo.
The flight would leave Frankfurt on Wednesdays at 0140 hours, arriving in Dhaka at 1910 hours after a stopover in Mumbai. The return flight from Dhaka would leave on Wednesdays at 2215 hours and was scheduled to land in Frankfurt at 0600 hours on Thursdays after a brief stop in Delhi.
March - Lufthansa's Supervisory Board approved an order for 35 aircraft.
The order included 30 aircraft from the Airbus A320neo family and five Boeing 777 freighters. The passenger planes were planned to be delivered in 2016 and the freighters from as early as 2013.Air Freight: 2010 News2010
April - Lufthansa Cargo was the latest airline to report continuing growth in demand over the past few months. Its quarterly volume numbers, reported an increase of 19.3% compared to the same period in 2009, at 391,000 tonnes. Utilisation also climbed strongly with the cargo load factor increasing by 14.2 percentage points to 71.8%.
The cargo trend indicated a general increase in business at the German airline, although passenger volumes grew by only 1.2% year-on-year, reflecting both the lesser nature of the fall in passenger volumes during the recession as well as the steepness of the recovery in air cargo.
BA World Cargo had also been reporting increasing volumes, with freight measured by cargo tonne kilometres rising by 6.4% year-on-year in March alone. British Airways suffered from a series on strikes during the period, although these did not seem to have affected adversely the quantities of cargo carried. Rather, it appeared that the lower available carrying capacity simply resulted in higher load factors. British Airways passenger business did suffer falls in volume as a result of its crews' industrial action so it was difficult to compare the behaviour of the two markets.
Performance was not dissimilar at the third of the big European carriers, Air France-KLM. Here cargo volumes climbed by 2.1% in March as compared to the same period in 2009. In the intervening period Air France-KLM has stripped out 11.8% of its capacity and this had increased the load factor to 72.5%. Growth was fairly uniform across the airline's geographical markets. It was a little surprising that Air France-KLM - which had not suffered from industrial action - was expanding its volumes more slowly than its two competitors which had had labour problems.
Although all of the airlines' cargo operations continued to be cautious in their forecasts, it was becoming fairly clear that the air freight market had recovered much of its activity and that the cargo operations of many of the larger carriers were back at economic levels of utilisation.
February - Lufthansa Cargo was under threat from a four day strike by its own pilots and that of its parent company, Lufthansa. The German carrier, which was one of the world's largest air freight carriers, had weathered the recession better than many of its rivals, however the threatened industrial action could have been a significant blow to its business. It was also part of a wave of labour unrest hitting many of the established airlines as they attempted to restructure their cost base in the face of a severe recession in the sector.
The pilots union, Vereinigung Cockpit, was threatening to bring all of its 4,500 members out on strike (Monday, 22 February), until Thursday of that week over a dispute concerning the use of non-German subsidiaries. These subsidiaries offered Lufthansa the option of cheaper wage costs and the union fears Lufthansa would increasingly use them instead of services operated by German staff. The pilots' union was demanding that all Lufthansa pilots were given the same pay and conditions, something which the company was not very willing to do. Instead it had offered its pilots in the German part of Lufthansa job security until 2012.
The airline had said that the strike could cost it as much as €100m. It was also considering legal action to stop the strike going ahead. Lufthansa says that although subsidiaries such as Lufthansa Cargo would be affected, operations by its non-German companies would not, enabling a proportion of flights to operate as normal.
The impact of such as strike on the air freight market worldwide would be significant. Although certainly not occupying a dominant position, Lufthansa provided substantial capacity in many airfreight routes such as Europe to China. The effect of a sudden withdrawal of this capacity was likely to push-up rates aggressively. The beneficiaries of this would be other air freight carriers, although freight forwarders may be left scrambling for space.
The direction of the market out of the Asia Pacific region had been uncertain after the big increases in volumes and rates prior to Christmas. The Lufthansa strike may have acted to continue driving up rates, if only in the short-term.Air Freight: 2009 News2009
September - Lufthansa was threatening to close its fleet of freighter aircraft if restrictions on night flights were imposed on its hub at Frankfurt. The CEO of Lufthansa Cargo was quoted commenting to Reuter's journalists just before the weekend that it might no longer pay to have its own cargo fleet. He was responding to a German court judgement on the service limitations around the expansion of Frankfurt airport. In order to calm opposition to the growth of the airport, politicians in the State of Hesse agreed to limit the number of night flights to just 17. Lufthansa challenged this condition, but the court rejected the airline's objection stating that the local politicians had the right to agree to such limitations.
The problem for Lufthansa cargo specifically was that it would receive few if any of the allotted 17 slots, with passenger services invariably being higher up the queue. This would severely curtail the viability of Lufthansa's freight hub at Frankfurt and therefore Lufthansa's freighter fleet.
Lufthansa had been unusual amongst major airlines in its commitment to cargo services but also in the degree of reliance it placed in cargo aircraft. Almost half of its capacity was in its fleet of 19 freighters with the rest in belly-freight. Therefore any move away from freighters would be a significant change in corporate strategy as well as having a sizeable impact on the air freight market. This suggested that its comments may in part be a threat designed to sway the politicians of Hesse as a much as a real assessment of Lufthansa's future fleet options.
It was unclear what implications any reduction in the freighter fleet would have on Lufthansa's other freight operations, such as AeroLogic, its joint venture with DHL which also operated its own aircraft but whose hub was based in Leipzig, in eastern Germany.
August - Lufthansa Cargo added a range of destinations in the USA and southern Europe to its network. The network extension included Athens, Greece and the airline had commenced a once-weekly flight on Thursdays ex Frankfurt using an MD-11F. From there, it will fly via Mumbai to Hong Kong.
In addition, the routing Frankfurt - Istanbul - Frankfurt would be served five times a week after a short stoppage and on Saturdays, an additional stopover in Athens would be implemented. The A300F freighter used offered a capacity of 40 tonnes. As previously it would continue serving Athens with belly capacities on Lufthansa passenger aircraft and ad-hoc road services from Frankfurt and Munich Airports.
From August, Lufthansa would launch twice-weekly flights out of Frankfurt to Seattle on the US West Coast on Thursdays and Saturdays. They would be routed through Seattle en-route to Los Angeles.
Additionally Lufthansa Cargo was expanding its services to South America with a daily connection to Viracopos/Brazil. New flights on Mondays would also be available to Bogota/Colombia, raising the frequencies to the southern coast of South America to thrice-weekly. An additional second stopover weekly in Curitiba would come into the timetable from August.
Finally Lufthansa Cargo would be offering a once a week connection to the Mexican city of Guadalajara (GDL). The flight would operate from Frankfurt via Dallas/Fort Worth (DFW) to Guadalajara and again via Dallas back to Frankfurt.
"The newcomers to the network in Europe, the USA, South and Middle America will strengthen the position of Lufthansa Cargo in those markets and offer our customers attractive connections to strong growth regions," commented the Senior Vice President Network and Product Management at Lufthansa Cargo AG. "Moreover, they show how fast and flexibly we are harnessing opportunities in a difficult market environment so as to emerge from the crisis as a reliable and future-proof partner for our customers."
January - Lufthansa Cargo confirmed previously-indicated plans to put many of its staff on short-time working.
In a statement the German air cargo carrier said about 2,600 ground employees in Germany would be put on short-time working from March 1. It reported that a company agreement to that effect had been signed in Frankfurt on February 12 by the Lufthansa Cargo Executive Board and the Works Council. "The envisaged measures will enable the company to adapt its staffing capacities flexibly to accommodate declining demand in the air cargo business," it stated.
Lufthansa Cargo said that under the terms of the agreement, which had been concluded for an initial period of 12 months until February 28, 2010, working hours for all ground staff (including non-pay-scale employees) would be reduced by 20%. Staff on short-time working would be guaranteed 90% of their last net pay.
The Lufthansa Cargo Executive Board Member Finance and Human Resources, commented: "As soon as the air cargo market picks up again, we can relax the measures. If, however, the demand situation becomes more acute, we can adjust the short-term working measures upwards."
Lufthansa Cargo said corresponding negotiations were currently being conducted with representatives of the carrier's cockpit staff. In addition, senior executives and members of the Executive Board would take a voluntary pay cut with the introduction of short-term working.
January - Lufthansa Cargo was set to introduce short-time working in response to the global slump in that traffic and resulting cutbacks in its own freighter service operations.
In a statement issued the German air cargo carrier said its Executive Board had reached an agreement on that move with the company's Works Council. The details of a corresponding company accord were to be hammered out by a negotiating commission "as soon as possible".
The Lufthansa Cargo Chairman, stated: "Short-time would affect around 2,600 employees of the Lufthansa cargo carrier in Germany. The envisaged measures will allow the company to adapt staffing capacities flexibly to accommodate declining demand.
"Demand for air freight capacities has fallen sharply, worldwide. The production halt in diverse industries has hit the entire international logistics business - and especially the air cargo industry.
"After scaling back our freighter capacities, flexible adjustment of staffing capacities has become inevitable in the company's present situation. We are nevertheless confident that we will be able to safeguard all jobs at Lufthansa Cargo."
Lufthansa Cargo pointed out that its freight tonnage had "plummeted" by 21.4% in December compared with December 2007. "Demand was still at a low level after the turn of the year owing to longer works holidays over Christmas, production cutbacks and short-time work in an array of industries."Air Freight: 2008 News2008
December - Lufthansa Cargo was cutting its global freighter capacity by about 10%. In a separate development, the German organisation was taking over the marketing of most of the ex-Asia freighter flights operated by Chinese joint venture carrier Jade Cargo International*.
In a statement Lufthansa Cargo said it was "flexibly adapting capacity to declining demand". "Freighter capacities are to be reduced by around 10% on January 1, 2009."
Simultaneously, continued Lufthansa Cargo, the carrier would reduce its cooperation with World Airways, which up to now had operated two MD-11Fs and a B747-400F on its behalf. "Those routes will in future be served by B747-400ERF aircraft in the fleet of the German-Chinese air freight carrier Jade Cargo International."
Lufthansa Cargo Chairman said the German operator was adapting capacity "in the face of increasingly difficult economic conditions and a distinct falloff in demand". "We will continue operating all our 19 MD-11 freighters, while utilising the capacity adjustments to further improve our quality, reliability and punctuality."
Against the background of current market conditions, stated Lufthansa Cargo, it and Jade Cargo International would step up their cooperation at the beginning of 2009. "The crane-emblemed carrier (Lufthansa Cargo) is taking over the marketing of the bulk of flights operated ex-Asia by its subsidiary (Jade) from January 1, 2009. It has been responsible for marketing Jade Cargo capacities ex Europe since March 2008."
Lufthansa Cargo pointed out that from mid-2009, it would also have access to capacity on the new B777-200LRF freighters in the fleet of new DHL Express/Lufthansa Cargo joint venture carrier AeroLogic. That venture would begin operations with a delay of several months due to delayed aircraft deliveries from Boeing.
*Lufthansa Cargo has a 25% stake in Jade Cargo International and Chinese carrier Shenzhen Airlines 51%. The other 24% is owned by German financial institution DEG.
December - Lufthansa Cargo announced the planned launch of a new multimodal AirShip service from Europe to a number of destinations in Australia on January 1.
The German carrier said shipments flown daily from Europe to Shenzhen (China) and Hong Kong could in future be shipped on from there by sea to the Australian metropolises of Melbourne, Brisbane and Sydney.
"Fast and seamless transition of cargo shipments from aircraft to ship is guaranteed by new AirShipCentres in Shenzhen and Hong Kong. Transport from start-to-finish will be operated under a single air waybill number," stated Lufthansa Cargo.
Lufthansa Cargo Vice President Europe/Africa explained that AirShip transport was an addition to the carrier's td.Pro service for general cargo. "With it, we are offering customers a reliable, high-quality transport solution to Australia, which ideally combines the time and cost advantages of air and sea freight," he claimed.
Lufthansa Cargo Vice President Asia-Pacific, added: "Simultaneously, we are accommodating growing demand on the Australian continent and strengthening the cargo hub in Shenzhen of our Jade Cargo International subsidiary."
Lufthansa Cargo said shipments currently took between six and eight weeks on the sea route from Europe to Asia. "The AirShip service reduces transit time for Lufthansa Cargo customers substantially to between 14 and 18 days. With the multimodal transport solution, they profit additionally from lower costs for tied-up capital and insurance."
October - Cargo 2000 announced an increased presence in China following the decision of Tianjin AirCargo Terminal (TAT) to join its air cargo quality improvement programme. Cargo 2000 was an IATA-backed (International Air Transport Association) initiative established to develop and implement a new quality management system for the worldwide air cargo industry.
According to Cargo 2000, TAT said membership of that programme would "further support its close customer relationships through enhanced monitoring and reporting of each customer's specific shipments and the ability to increase the reliability of freight movements".
TAT also said: "With proper measurement, we are able to identify service improvement opportunities, streamline our processes and make our operation more efficient. In the longer term, we expect Cargo 2000 to help us bring in more business when its brand name is more recognised by the shipping public for its ability to produce cost reduction opportunities and more efficient operations due to the implementation of standardised business processes."
TAT's shareholders were Hwa-Hsia International Holding, German carrier Lufthansa Cargo and Tianjin Airport International Logistics Joint Stock Co. It operated from a brand new 22,000 sq m cargo centre in the Free Zone at Tianjin Binhai International Airport.
August - Lufthansa Cargo announced two new but unrelated developments - the imminent integration of the business activities of current 100% subsidiary cargo counts GmbH and an expansion of its security measures in the US.
Commenting on the first move, Lufthansa Cargo stated that at the beginning of 2009, it would take over responsibility for the business activities of cargo counts GmbH, including its staff and customers. Within the context of a merger with Lufthansa Cargo, continued the carrier, the supplier of total cargo management would be dissolved at the end of the year.
The chairman of the executive board of Lufthansa Cargo, commented: "Through the integration of cargo counts we are provided with operational synergy effects and will further increase the economic efficiency of Lufthansa Cargo Group."
Lufthansa Cargo originally hived off cargo counts as an independent company in September 2003. Its customers mainly include tourist airlines like Condor or Sun Express. In addition, cargo counts markets the capacities of Italian airline AirOne and of Croatia Airlines. Customers of Lufthansa Cargo also have access to those networks.
Regarding security measures in the US, Lufthansa Cargo said it would "shortly" install state-of-the-art explosive trace detection systems at all the destinations it served in that market − New York; Newark, NJ; Boston; Philadelphia; Washington, DC; Detroit; Charlotte; Orlando; Miami; Houston; Chicago; Dallas/Ft. Worth; Atlanta; Denver; San Francisco; Portland, Oregon; Seattle and Los Angeles.
Lufthansa Cargo pointed out that in 2007, the US Congress had mandated that within three years, all cargo transported on passenger aircraft must be 100% screened. The regulation was to be implemented in phases: 50% of all shipments must be checked by February 2009 and all shipments by August 2010.
Lufthansa Cargo said it would be utilising the new equipment ahead of that schedule, from the third quarter of 2008. Additionally, the carrier has transformed its bases in Chicago and Los Angeles into 'security hubs'.
August - German carrier Lufthansa Cargo issued a statement claiming that operations at its main hub, Frankfurt, were "running smoothly without major delays" despite the indefinite strike action by some freight handling staff, Lufthansa passenger ground service personnel and aircraft cabin crew, which began earlier this week.
Outside Frankfurt, Lufthansa Cargo admitted there were "major problems" at Hamburg airport "because of the relatively high participation in the walkout there" but claimed the strike had so far had only a "little impact" on its other stations in Germany. The cargo organisation also stated that its MD11 freighter operations out of both Frankfurt and Leipzig had so far operated normally, with no cancellations or delays, and it expected that pattern to continue both last night and today.
However, during the course of yesterday there were signs that the strike, organised by the ver.di trade union in support of a pay claim, was having an increasing impact on Lufthansa's passenger services, with a number of German domestic, intra-European and longhaul flights being cancelled. Commenting on the impact of that on bellyhold cargo operations, Lufthansa Cargo stated yesterday that it had to date re-booked cargo on earlier or later flight connections or switched shipments to road feeder services in its German and European network.
Lufthansa Cargo also stated that in light of the strike action, Lufthansa's passenger division had adapted its flight schedules for the next five days and issued a special timetable for German domestic and European connections. "This ensures that 90% of all Lufthansa flights in the German and European network will take place. A special timetable for longhaul services is in the offing."
Regarding specific cargo activities at Frankfurt, Lufthansa Cargo said embargos on the handling of selected products there, including live animals and valuables, remained imposed or had been prolonged. For example, an embargo on the transit/export movement of tropical fish and general movement of day-old chicks had been extended to August 5. The carrier added that that there was no embargo on Cool/td and classic perishables cargo which were being accepted worldwide as usual
Late yesterday, there were news agency reports that the ver.di union had resumed talks with Lufthansa in a bid to resolve the dispute.
June - Lufthansa Cargo was appointed leading carrier for the international air cargo industry's 'e-freight' project in Germany - Europe's largest air cargo market - during the annual general meeting of the International Air Transport Association (IATA) in Istanbul, Turkey.
Lufthansa Cargo chairman commented: "Lufthansa Cargo will press ahead firmly with the e-freight project and expressly further paperless cargo transport. With the help of this initiative, we intend to accelerate processes for the benefit of our customers, create cost-efficient structures and generally advance the cause of the airfreight industry."
Lufthansa Cargo stated that in cooperation with customers, it would now make preparations for the first paperless shipment and put in place the required processes. The aim, said the German carrier, was to facilitate the first paperless transport from Germany at the end of this year.
The 'e-freight' project was initiated as part of IATA's 'Simplifying the Business' initiative in 2004. In November 2007, it was trialled worldwide in a pilot phase in six markets. On completion of the pilot phase, IATA named further countries for that project, including Germany.
According to IATA, an average 38 documents are produced for each single air freight shipment worldwide - enough to fill 39 B747 freighters annually. Theoretically, suggested IATA, an electronic solution could save the international air freight industry in the region of US$1.2bn.
May - German air freight specialist cargo counts (subsidiary of German carrier Lufthansa Cargo AG) appointed SP Aviation Services Inc as its new general sales agent (GSA) for Turkey.
The latter, which was headquartered in Istanbul and also opened a new office in Izmir, would be solely responsible for marketing the air freight capacity of cargo counts' partner airlines. The main carrier, besides Condor, Croatia Airlines and euroAtlantik, is the Turkish holiday airline SunExpress.
According to cargo counts, SP Aviation Services fought off competition from several internationally-established companies to win the tender. "With our bases in Istanbul, Antalya and Izmir we can guarantee cargo counts a high degree of customer proximity in Turkey, which is a growth market," said Nursel Gueven, director sales and marketing at SP Aviation. "Our local proximity to SunExpress will also simplify sales and handling enormously and enable us to respond quickly and flexibly to all our customers' wishes."
Cargo counts GmbH, which is based in Hattersheim, close to Frankfurt Airport since its founding in 2003 has provided total cargo management for various airlines.
March - Lufthansa Cargo and the International Air Transport Association (IATA) signed up to even closer co-operation with the launch last week of the latter's 'e-freight' project in Germany.
At a meeting in Frankfurt, the two initiated a further trial phase of the IATA worldwide initiative aimed at eliminating the need to transport paper documents for air cargo shipments. Lufthansa Cargo said it would take over the project management in Germany and oversee the effective implementation of the necessary processes by all the stakeholders in the logistics supply chain.
The 'e-freight' project is said to signify a major step towards process simplification in the air cargo industry. "The IATA initiative will allow us to handle all the paperwork in the entire supply chain electronically and make it more environment-friendly," observed Markus Witte, the designated project manager at Lufthansa Cargo. "E-freight will furnish cargo carriers with better data quality. It will improve supply chain efficiency and customer service at lower cost."
The e-freight project was initiated as part of the IATA 'Simplifying the Business' initiative in 2004 and trialled in a pilot phase in five markets during 2007. The findings obtained in the trial phase are now to be translated into practice in other major markets, including Germany, pending completion of the project by 2010.
In a separate development, Lufthansa Cargo also announced that with the planned introduction of the carrier's 2008 summer timetable on March 30, its flight programme, particularly to Asia, would be substantially expanded. New services would include two direct freighter flights per week to Beijing. "For the first time, the cargo carrier's MD-11F service from Frankfurt to Shanghai and Seoul will be operated non-stop," it stated.
Other plans, announced Lufthansa Cargo, included adding two new destinations in China. From the end of March, Nanjing would be served five times a week from Frankfurt, and from June, Shenyang would get a thrice-weekly service from Munich. Both routes would be operated with A340-300 passenger aircraft offering an average bellyhold cargo capacity of about 17 tonnes.
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Cold Chain Logistics
Cold Chain Logistics: 2011 News2011
December - Lufthansa Cargo begun operations at its new facility for temperature-sensitive freight in Frankfurt, Germany. The Lufthansa Cargo Cool Centre was built in the space of just six months.
The facility was equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 sq m. From now on, all temperature-controlled shipments carried by the airline in Frankfurt would pass through the new facility.
The Board Member Product and Sales, said: "Our Cool/td product is assuming ever-increasing importance for Lufthansa Cargo thanks to growth rates of 15%. The Lufthansa Cargo Cool Center will enable us to ship temperature-controlled freight faster, more reliably and more efficiently at our Frankfurt hub, and further expand our position as a leading provider of cool transports."
Lufthansa Cargo earmarked substantial capital expenditure last year in the Cool/td product. Besides investing in the development of the Opticooler, the industry's most efficient cooling container, the cargo carrier commenced operations at its first international pharmaceutical hub at Hyderabad in India.
September - DHL Global Forwarding acquired Lufthansa's 50% ownership in joint venture company LifeConEx. The end–to–end life sciences cold chain logistics provider was now a 100% DHL subsidiary.
"After running the innovative specialised logistics service together for six years, DHL Global Forwarding and Lufthansa Cargo agreed that a change in ownership would best prepare LifeConEx to further grow its market position" stated Roger Crook, CEO of DHL Global Forwarding and Freight, and Deutsche Post DHL Board Member sponsor for the Life Sciences & Healthcare Sector.
Established in 2005, the joint venture became the global leader in its niche market. DHL would utilise its global presence to leverage LifeConEx's capabilities and expand its cold chain services. While furthering its cooperation with Lufthansa, DHL would also maintain LifeConEx's neutrality in carriers, forwarders and packaging providers. This investment also supported Deutsche Post DHL's 2015 group and Life Sciences sector strategy.
David Bang, CEO of LifeConEx would continue to lead the company and was committed to overseeing the ownership transition for continued development and success.
May - Lufthansa Cargo announced that its pharmaceutical hub for temperature-sensitive airfreight had begun operations at Hyderabad Airport in India.
"With the certification of the key stations for cold-chain transport in our network we are strengthening our commitment to transporting temperature-sensitive shipments," said the Senior Manager Global Key Accounts Temperature Control at Lufthansa Cargo. "In parallel to the certification process, we are further expanding our own fleet of cold-chain containers in Hyderabad."
In December last year, Lufthansa Cargo and the operator of Hyderabad Airport, the GMR Group, announced plans to jointly develop the airport into the key hub in South Asia for the transport of temperature-sensitive pharmaceuticals.
The first two cold-chain transports from Lufthansa Cargo's new pharmaceutical hub in Hyderabad carried consignments from the Dr. Reddy and Gland Pharma pharmaceutical groups. The temperature-sensitive medicines were transported to Philadelphia and Chicago and via Frankfurt aboard a Lufthansa Cargo MD-11.Cold Chain Logistics: 2010 News2010
August - Lufthansa Cargo is offering customers more options for the transport of temperature-sensitive airfreight, adding to its portfolio, the latest generation of cooling containers - opticooler.
"Business with temperature-sensitive freight has grown strongly in defiance even of the global economic crisis in 2009," said Lufthansa Cargo. "We aim to continue that growth trend and increase our market shares. We have for that very reason invested in new technologies."
Transportation of temperature-sensitive cargo is a demanding operation for cargo airlines. With outside temperatures at airports they serve ranging from minus 30 to plus 40 degrees Celsius, they need to be equipped with containers in which temperatures fluctuate only marginally so as to avert any damage to sensitive freight. The new opticooler offers greater reliability than other models.
Lufthansa Cargo completed the test phase with the innovative container in August. Opticoolers are used on all routes in the cargo carrier's global network.
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Green Logistics
Green Logistics: 2010 News2010
March - Lufthansa Cargo and Jettainer concluded trials of lightweight containers that will allow lower fuel burn and thus lower CO2 emissions.
Jettainer, the outsourced ULD (Unit Load Device) management company partly owned by Lufthansa Cargo, provided 1,000 containers made of fiberglass, Kevlar fiber or Dyneema for a total of approximately 120,000 trial runs on Lufthansa flights over six months. The containers are 20% lighter than aluminum containers.
"Lufthansa Cargo stands by its ecological commitment. By 2020, we aim to reduce our specific fuel consumption by 25%," said Lufthansa Cargo. "The successful tests with lightweight containers constitute a significant step in that direction."
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Humanitarian Logistics
Humanitarian Logistics: 2010 News2010
September - Lufthansa Cargo is sending a further relief flight to Pakistan. On board the MD-11 freighter are around 23 tonnes of Oral Rehydration Salts for children suffering from diarrhoeal diseases after the disastrous floods. Lufthansa Cargo is making the freighter's capacity available free of charge to UNICEF. Flight LH8456, routed from Frankfurt to Hong Kong, will make an unscheduled stopover in Karachi to off-load the relief supplies. The cargo carrier organised the special flight for UNICEF in cooperation with its Lufthansa Cargo Charter subsidiary, which specialises in ad-hoc transports.
At the end of August, Lufthansa Cargo and its Charter subsidiary sent around 50 tonnes of medical supplies to Pakistan for the United Nations Population Fund (UNFPA). Lufthansa Cargo and UNICEF are planning a further relief flight to Karachi.Humanitarian Logistics: 2007 News2007
December - the final shipment of more than 750,000 life-saving vaccines was loaded on an aircraft bound for Uzbekistan as part of a humanitarian effort in Canada spearheaded by UNICEF, Sanofi-aventis Group, one of the country's leading medical aid agencies, and the logistics division of DHL to provide badly-needed medicines to the children of that Central Asian country.
Sanofi Pasteur, the vaccines division of Sanofi-aventis, donated the single doses of vaccine to Health Partners International of Canada (HPIC), a Canadian medical aid agency dedicated to improving access to healthcare and medicine in the developing world. HPIC was providing the vaccines to global children's humanitarian agency UNICEF for use in the winter in a vaccination programme for the children of Uzbekistan.
The vaccines would be used to immunise children under the age of two against pertussis (whooping cough), diphtheria, tetanus and polio. Uzbekistan's Ministry of Health covered all in-field transportation costs and supplied sufficient quantities of syringes and safety boxes. DHL, a long time corporate partner of UNICEF, discounted the transportation cost of 26 temperature-controlled containers and leveraged its global network and delivery expertise to manage the cargo movements.
"Because the vaccines had to remain in a range between +2◦ C to +8◦ C at all times, this shipment was especially challenging," commented the director of business development, life science, DHL Global Forwarding, Canada. "As a result, we engaged LifeConEx, a joint venture with DHL Global Forwarding and Lufthansa Cargo, to ensure the vaccines were safeguarded and maintained complete integrity at each step of the journey."
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Service Parts Logistics
Service Parts Logistics: 2008 News2008
August - time:matters announced that it had gained Siemens Healthcare (Erlangen, Germany), a business unit of Siemens AG, as a customer for the time-critical spare parts logistics segment. The logistics provider said it had entered into a cooperation agreement with retroactive effect from April 1, 2008.
As part of that agreement, time:matters had taken on spare parts supply in Scandinavian countries as well as in Italy for Siemens Healthcare, one of the world's largest suppliers to the healthcare industry. "Siemens Healthcare manufactures and distributes a wide range of life-saving and vital high-tech equipment for clinics and doctors' offices - such as diagnostic systems and therapy equipment, but also complete IT solutions," explained time:matters.
The logistics company said that following Fujitsu Siemens Computers, time:matters had within a short time been able to gain another corporate customer from the Siemens Group for its logistics services. "For instance, time:matters maintains a special 'in-night network' for Siemens Healthcare which ensures that spare parts for sensitive medical equipment can be transported overnight from the spare parts warehouse to the place that they are needed - within 12 to 14 hours," it stated.
"Therefore, it is, for example, possible to ensure that a component, which is urgently needed for the repair of a defective magnetic resonance tomograph, is picked up at the spare parts warehouse at 1830 hours and is already at the respective clinic's disposal at 0800 hours the next morning. In addition to the 'in-night service', other services can also be implemented and are selected according to the individual needs of each specific case of application."
News
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23/03/2012 Lufthansa Cargo offers new express service
23/03/2012
Lufthansa Cargo is offering a new worldwide express service for urgent shipments. The new "Courier.Solutions" service provides the fastest transit and shortest delivery times in the Lufthansa Cargo. The company announced that the service has has no weight limits.
Lufthansa Cargo is offering this new product in cooperation with time:matters, a Lufthansa Cargo Group company that specialises in express logistics services. Customers can drop off their shipment at Frankfurt Airport up to 90 minutes before departure. At various other airports, the minimum drop–off time is one hour before departure. At Frankfurt, the transit time is 60 minutes, while the transfer time at Munich is 50 minutes.
Monika Wiederhold, Vice President Product Management at Lufthansa Cargo said "with the shortest handling times, personal courier accompaniment during transit and round–the–clock, proactive shipment surveillance we can offer the speediest assistance when trade fair items or medicines, for example, are urgently needed on the other side of the world." -
21/03/2012 Lufthansa Cargo serving new destinations in summer timetable
21/03/2012
Lufthansa Cargo has announced it is adding a route to Chongqing, China when its summer flight schedule begins on March 25. The company is offering flights to 303 destinations in 99 countries.
Chongqing will be served with four flights weekly, operated by Lufthansa Cargo's MD–11 freighters. Other newcomers in the timetable – also thanks to the expansion of the network of Lufthansa passenger services – are Shenyang in northeastern China and Qingdao (Tsingtao) in Shandong province.
Flights to Detroit, US are to be increased to twice–weekly connections. Services to Detroit commenced initially in January with a once–weekly flight in the Lufthansa Cargo freighter network.
In South America, the company is adding twice–weekly MD–11 flights from Frankfurt to Montevideo, Uruguay.
Back in the timetable is Kolkata, India. Flights were operated to the Indian city last summer, but were discontinued in recent months. Once–weekly direct flights from Frankfurt are now available again in the summer flight schedules.
"We have selectively extended our route network and brought new and attractive growth markets into the timetable," noted Lufthansa Board Member Product and Sales, Andreas Otto. "We are expanding our presence in China, the world's biggest airfreight market, and now laying on freighter connections to a total of six Chinese destinations." -
23/02/2012 Dachser joins Lufthansa Cargo´s Global Partnership Program
23/02/2012
Dachser Transport of America Inc. (Dachser USA), has signed an agreement to become the newest member of Lufthansa Cargo's Global Partnership Program. The Program's mission is to increase cooperation amongst its members for planning capacity, reducing transaction costs and promoting key industry issues.
"Lufthansa Cargo's closely meshed route network and frequent, excellent service makes the company a strong partner for our intercontinental business," said Thomas Reuter, managing director Dachser Air & Sea Logistics. With a route network that covers some 300 destinations in over 100 countries, Lufthansa ranks among the world's leading air freight carriers.
In addition, Dachser also announced that the company has promoted Mickey Diaz to the position of Director Airfreight USA. "This new position will better serve our customers, as Mickey is a great asset for our shippers to meet the demands of logistics challenges faced in the US market," said Frank Guenzerodt, President and CEO of Dachser USA. Diaz has been in the transportation industry for more than 15 years, and joined Dachser in September of 2011. -
27/01/2012 Lufthansa Cargo commences flights to Detroit
27/01/2012
Lufthansa Cargo announced it has started operating its first–ever flights between Frankfurt and Detroit, Michigan (US). The route connects Germany with the centre of the US automotive industry every Monday (after the beginning of the summer schedule: each Sunday) by an MD–11 freighter in the cargo carrier's fleet. The subsequent return flight will stop off in New York on the way back to Frankfurt.
"The new freighter connection supplements the daily flights operated by Lufthansa passenger aircraft, and offers our customers more capacity and greater flexibility," said Achim Martinka, Lufthansa Cargo Vice President The Americas. "The automotive and pharmaceuticals industries, especially, are fuelling the growing demand for fast and reliable transports to and from Detroit."
Starting in March, Lufthansa Cargo plans to expand its Detroit operations to twice per week. This new connection is the seventh destination served by the cargo airline's freighter network in the US. Along with the services operated by the Lufthansa passenger business, direct flights are now available to 17 airports in the US.
Briefs
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16/03/2012 The strength of air cargo carriers varies in difficult market
16/03/2012
The air freight market may have been depressed in terms of demand over much of 2011 and the first three months of 2012, but airlines have differed in their ability to prosper in the market.
Lufthansa described the year as being "dynamic", with its freight markets split between a growing German and America markets and "cooling" demand in China. Revenue for 2011 was up 5.3% at €2,943m, however profits were down sharply with EBIT (Earnings Before Interest and Tax) 25.6% lower at €244m. Profits were also depressed by higher fuel costs. Although this does represent a sharp fall in profits, 2010 represented a record high and margins remained strong in 2011 at over 9%.
Cathy Pacific also saw increases in revenue, but of a much lower percentage of 0.3% to HK$25,980m. The company managed to increase both yield, which was up by 3.9%, as well as capacity, which increased by 6.9%. Gross tonnage, however, fell by 8.6% to 1.649m tonnes. Obviously, Cathay Pacific is much more exposed to the Chinese market than Lufthansa and suffered accordingly, with both mainland China and Hong Kong demand falling considerably from the first quarter of 2011 onwards.
Last week, Air France–KLM announced more depressed results as the Franco–Dutch airline saw a significant slump. Revenues were down 3.4% to €802m whilst the cargo division only broke even in terms of operating profit compared with €60m in 2010. Again, the combination of static or lower freight revenues combined with higher fuel costs damaged profitability.
All three carriers have moved to either slow or freeze expansion in capacity over the next twelve months, whilst Lufthansa suggested that the issue of low rates had eased as capacity and demand were more in balance, asserting that the market had "returned to normal". However, two threats remain. In certain parts of the market, new entrants have ordered a great–deal of new capacity, mainly in the form of belly–freight with intra–Asian routes seeing particularly high growth. In addition, the price of oil remains an issue of considerable uncertainty. -
25/11/2011 Air freight market sees more pessimism heading into 2012
25/11/2011
Air freight has suffered more badly than container shipping recently, with Asia–Pacific being badly hit and views on the direction of the market appear to be deteriorating.
Hong Kong International Airport (HKIA) saw volumes fall by 8.2% in October to 342,000 tonnes despite a respectable growth in passengers and aircraft movements. The fall in cargo volumes appears to be accelerating, with traffic over the last six months down by 7.5%, whilst over the past twelve months it is down 2.3%. HKIA attributed the fall to the "worldwide negative growth trend". Volumes between Europe, North America and Taiwan all "experienced double–digit year–on–year declines in overall cargo traffic". Surprisingly so did traffic between the Chinese mainland and Hong Kong. Export traffic fell by 8% year–on–year as did exports whilst trans–shipments fell by 10%. However, some of the falls in the Asia Pacific region could be partially attributed to the floods in Thailand.
This sense of a deteriorating market has been reinforced by reports of an investment freeze at Lufthansa. Earlier in the week, Lufthansa Cargo announced that it would postpone investment in new terminal facilities at Frankfurt airport citing the ban on night flights. Andreas Otto, the head of sales at Lufthansa Cargo has also been quoted as telling journalists at a conference in Frankfurt this week that the company was planning to cut capacity by 20%–30% in order to respond to an expected fall in demand over the next two quarters.
It is not unusual for air cargo providers to temporarily ground air freighters after Christmas due to seasonal falls in volume; however it appears that Lufthansa thinks that there will be an absolute fall in demand as compared with last year. The reports of an investment freeze across the whole of Lufthansa's business were reported by Reuters as coming from leaked comments made to the workforce by the airlines CEO, Christoph Franz who said it was a necessary response to improve the finances of the company. -
21/10/2011 Frankfurt expands – but Lufthansa hit by night flight ban
21/10/2011
At 2.8 km the new runway will be shorter than the existing facilities and is designed to serve smaller short–haul traffic. Part of the 'Expansion 2020 program', it is the first major part of a development that will also see a new terminal and new cargo handling facilities by 2016. The taxi–ways to the new runways will also include a bridge over the neighbouring motorway and another over a high–speed railway.
In order to get this programme past protesting local residents and environmental pressure groups, Fraport, the airport's owner, agreed to certain conditions including greater restrictions on night–flights. The residents and pressure groups who continued to dispute the airport expansion have now won a court order banning all night–flights from Frankfurt citing this agreement. The court judgement enacting a ban, which was issued on the 11th of this month, is temporary until the case can be concluded in a higher court next year. In the meantime all flights between 23.00 and 05.00hrs will be prohibited from the 30th October.
The immediacy of this decision has dealt a blow to Lufthansa Cargo in particular. It has been forced to adopt emergency winter schedules including scrapping two flights a week to China and even flying freighters to neighbouring, less regulated German airports during the day in order for them to take off for their final destinations during the night. Such has been the disruption that Lufthansa's CEO Christoph Franz has even suggested that the new runway should not be opened, circumventing the ban on night flights.
It is unclear what effect this ban will have on air cargo traffic in Europe. Frankfurt is Europe's largest air cargo hub, although belly freight operations will be affected less as there is no restriction on day–time flights. Presumably it will be the freighters and particularly those operating to China and Central Asia that will be affected most. This is all the more painful for Lufthansa as this is a route which they have made particular efforts on. There will be those who benefit from what is likely to be a major – if presumably temporary – restructuring of air freight logistics in Europe. Neighbouring airports in France, the Netherlands but also possibly the new Leipzig–Halle facility which is home to the AeroLogic Lufthansa –DHL joint venture, could see more business. Of even greater threat is the ability of Dubai and the smaller Gulf airports to jump in and grab some trans–shipment business from Frankfurt.
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15/07/2011 CEVA strives to improve supplier relationships
15/07/2011 Freight forwarding is not a business known for its collaborative nature. Air, sea or land, it pivots around the ruthless ability to attain the lowest price from the carrier and the highest price out of the customer. Relationships have been strained on both sides of the divide. As recently as last year, at the top of the market, shipping lines were 'rolling' cargo off their vessels if the shipper was insufficiently favoured. Now the bigger shipping lines are trying to enforce "no show clauses". This is not a business for the sentimental. Therefore it comes as a surprise that forwarder and contract logistics provider CEVA has just held an awards ceremony for its 'supplier of the year'.
In a ceremony held in CEVA's 'City of Books' facility in Milan, the company announced Safmarine as its best sea freight supplier; Lufthansa Cargo as its best supplier of air freight and it gave its road freight award to Mercer Transport of Kentucky, USA. Bruno Sidler, CEVA's Chief Operations Officer, described Safmarine as "...becoming over the years almost like an extended arm of the CEVA ocean freight service".
Bruno Sidler admits that many awards ceremonies, pioneered by vehicle manufacturers, don't have the best of reputations. And yet he cites Japanese practice as his inspiration for supply chain relationships at CEVA. "If you can develop relationships in a truly collaborative way, that drives immense value. The Japanese have demonstrated this for years". In particular he describes how Toyota, "...embraces their supplier, bringing them in at an early stage in product planning to achieve better solutions that drive value in the market–place". He points out that, whilst pricing remains central to the business, "...beyond pure port to port pricing there is so much more that you can do".
Mr Sidler must be right. To take the automotive example further, the reason that Toyota's cars are so much more reliable than many other brands is because it treats its suppliers well. Surely this must apply to logistics processes. However convincing all of his suppliers and indeed his customers of this might require a few more award ceremonies yet.



