Lufthansa bails out of Jade Cargo
08 / 06 / 2012
LUFTHANSA Cargo has announced it is cutting its losses and pulling out of its joint venture with the beleaguered Chinese-German freight carrier Jade Cargo.
The company’s decision to sell its 25 per cent stake comes after Jade was forced to ground its fleet of six 747-400s due to weak demand in January.
It also underwent a significant restructure with the help of Chinese transportation firm UnitTop the following month.
Shenzhen Airlines is the major shareholder in Jade Cargo with a 51% stake. German development company DEG Deutsche Investitions owns the remaining 24 per cent.
“As long as we get permission from the authorities, we intend to exit our stake," Lufthansa Cargo’s chief executive officer Karl Ulrich Garnadt said.
He also revealed the company took a loss of almost €16 million euros US$21.2 million) from the joint venture in 2011.
However, Garnadt would not confirm whether the restructuring deal would result in Jade’s newest partner UniTop purchasing its stake.
Lufthansa Cargo switched its capacity to routes in the Americas following the price wars in the Asia market last year.