Lufthansa Cargo freezes $1.35 billion investment
20 / 11 / 2011
THE night-flight ban at Frankfurt Airport (Germany) has prompted Lufthansa Cargo to put its US$1.35 billion investment plans on hold.
“Lufthansa still wants to invest, but the size is dependent on the night-flight regulations,” a spokesman said. “The group had planned to invest in a new logistics centre, as well as a new administration building.”
The German carrier has embarked on a cost-cutting programme, including reductions in wages and plans to become more competitive on medium-haul routes.
“It is correct that we need to bring down supplemental wage costs and pension expenses over the long term, if we want to become competitive on the European medium-haul business,” chief executive Christoph Franz said.
The ban went into force on 31 October and runs between the hours of 2300 and 0500 until the first quarter next year.
Lufthansa Cargo will station a freighter in Cologne and shift goods there via road for onward transportation.