Is Air China the future for Jade Cargo
15 / 04 / 2010
WITH two top executives from its major shareholder Shenzhen Airlines under arrest, and that carrier looking set to be absorbed by the Air China group, these must be uncertain times for Jade Cargo International.
With 51 per cent of its equity held by Shenzhen Airlines and 25 per cent by Lufthansa Cargo, is it also about to become part of Air China’s cargo operations?
The uncertainty must surely be deepened by the merger of Great Wall Airlines into China Eastern, apparently in response to a Chinese government desire to create fewer, larger airlines.
Both Lufthansa Cargo and Jade itself are not surprisingly being relaxed in their public statements on the topic. “The airline industry in China is being re-organised, and we are happy to be involved as a part owner of Jade,” said Carsten Spohr, chairman of Lufthansa Cargo, at the carrier’s annual results press conference in mid-March.
He added there was “continuing dialogue with the Chinese side” about the new shareholding structure, and about the planned US$50m capital injection into Jade that was supposed to take place last year but was delayed by the problems of Shenzhen Airlines.
“The situation in China is always exciting, but I prefer a dynamic shareholder situation in an expanding market to stable relationships in one that is mature,” he commented.
For the full story read the free latest digital edition of Air Cargo News, dated 19 April, here.