TROUBLED Chinese-German freight carrier Jade Cargo is to be liquidated after its shareholders fail to agree on a restructuring plan.
Chinese logistics enterprise, UniTop Group, became the newest partner in the joint venture, which included Lufthansa Cargo and LufthaShenzhen Airlines – the major shareholder with a 51 per cent stake.
A spokesperson for Lufthansa states: “Due to weak demand for air cargo services to and from China, the restructuring of Jade Cargo could not be successfully concluded.
“In view of the latest developments the board of directors has decided to voluntarily dissolve the company subject to all required government approvals for this process.”
The news comes just months after Lufthansa Cargo’s chief executive officer, Karl Ulrich Garnadt, announced the company lost almost €16m (US$21.2m) from the joint venture in 2011 and would be selling its 25 per cent stake.
German development firm, DEG Deutsche Investitions, owns the remaining 24 per cent.