Lufthansa Cargo plans capital injection for Jade Cargo

Singapore
Source:
This story is sourced from Pro
See more Pro news »

Lufthansa Cargo and Shenzhen Airlines are planning to inject more capital in its Chinese cargo joint venture Jade Cargo International, and expects the capitalisation to be completed by year-end.

"We are concentrating on stabilising Jade and will give Jade a solid capitalisation," says Lufthansa Cargo's chairman and CEO Karl Ulrich Garnadt.

Noting that Jade was operationally profitable in 2010, Garnadt adds that it requires "broader capitalisation" to grow further. "It is still in the initial phase, unlike Lufthansa Cargo," says Garnadt, adding that he expects for the capitalisation to be completed in about five months.

Lufthansa Cargo has a 25% stake in Jade while Shenzhen Airlines holds a 51% share. The remaining 24% stake is held by a German bank.

Despite the capitalisation plans, Garnadt indicates there are no plans yet to grow Jade's fleet further. It currently operates six Boeing 747-400 freighters.

Lufthansa Cargo, which operates 18 Boeing MD-11 freighters, will take delivery of five Boeing 777 freighters between 2013 and 2015.

However, there are no plans to introduce the 777F into Jade's fleet. "There is a good advantage in having the 747Fs, because there are certain markets that can be served by them," says Garnadt.