Lufthansa scrutinises Jade as it seeks to cut loss-making units

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Lufthansa Group is warning that it will cut its ties with loss-making operations that have no realistic prospects of turnaround, pointing out that it is closely examining the profitability of its Chinese joint venture Jade Cargo.

The group is also looking at disposal of non-strategic operations, such as its information technology unit Lufthansa Systems.

Without specifically stating that it would withdraw from Jade - a partnership with Shenzhen Airlines - Lufthansa chief Christoph Franz said the German company was "analysing the profitability" of Jade and other ventures.

"We shall withdraw from loss-making units without a reasonable turnaround perspective," said Franz, adding that it had already dropped Lufthansa Italia and was "weighing up other strategic options" with divisions including BMI.

Although no consolidation is planned for the immediate future, Franz said the company was "assessing selected airline acquisitions" and added that Lufthansa was "considering the disposal of non-strategic investments", specifically identifying Lufthansa Systems.