Japanese cargo carrier Galaxy halts operations

Singapore
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Japanese express freight carrier Galaxy Airlines has halted all operations, two months after announcing plans to shut down as a result of growing losses.

The carrier says on its website that it officially notified the Japanese Ministry of Land, Infrastructure, Transport and Tourism yesterday that it had suspended all its operations.

It plans to sell its two Airbus A300-600 freighter aircraft and the company is expected to be liquidated by the end of March.

Galaxy operated its two A300-600Fs on four domestic routes. It launched operations in October 2006 but never made money.

Majority owner Sagawa Express, an express parcel delivery and logistics company, tried to convince minority shareholders to back a restructuring of the airline but it was not successful, leading to the decision in August to halt all operations.

One of the minority shareholders is Japan Airlines, with 10%.