PETER CONWAY FRANKFURT

NewGlobalCargo, the alliance linking the cargo arms of Lufthansa, Singapore Airlines and SAS, expects to pass its "first major milestone" in the second half of the year, says Lufthansa Cargo chairman, Jean-Peter Jansen.

This milestone is a systemwide express product, NewGlobalCargo's first joint offering. Other harmonised products are to follow, and will test whether the alliance can really produce meaningful synergies for customers.

The grouping was first launched in May 2000, six months ahead of its Air-France-led rival, SkyTeam Cargo, which has already extended Air France's express products to other alliance members. So far the most noticeable effect of New-GlobalCargo is that SAS has followed Lufthansa's lead in making its cargo department an independent company. Singapore Airlines is due to follow suit.

Jansen offers no apologies for being slower than SkyTeam, however. "If you are going to do a joint product properly, it takes time to develop," he insists. "We won't launch a product until we are really sure it works on all three systems."

Speculation is also rife that Lufthansa will take a stake of up to 49% in SAS Cargo. Jansen noticeably failed to deny this to the annual Lufthansa Cargo press conference in May, admitting negotiations were taking place, but refusing to go into details.

Nor were details forthcoming about Lufthansa Cargo's still shadowy alliance with Deutsche Post World Net, now the world's largest logistics group. Earlier this year Jansen said that the two, along with express operator DHL which is 51% owned by Deutsche Post and 25% by Lufthansa, were looking at synergies in five areas, with details due to be announced in May.

Now he says that management changes in DHL have held up discussions somewhat and would only commit himself to making an announcement sometime in the next year.

Details of Aerologic, the company in which Deutsche Post and Lufthansa have pooled their holdings in DHL, and e-logic, a joint e-business venture between the two, are still sketchy a year after they were unveiled.

Jansen refused to elaborate on any plans, and privately admits that e-logic has yet to even be incorporated as a separate company.

Separately, Jansen has also issued a strong warning on the proposed night flights ban at Frankfurt airport, which the German state of Hesse is considering as a quid pro quo for allowing a fourth runway to be built.

Lufthansa Cargo and Deutsche Post would be hardest hit by any ban, with Deutsche Post forced to move the mail flights Lufthansa operates on its behalf, and Lufthansa to reschedule a third of its long-haul freighter flights.

Jansen said there was no alternative to night flights if Lufthansa Cargo was to meet customer demand, and dismissed the idea of moving freighter operations to nearby Hahn airport, a former US military base owned by Fraport, owners of Frankfurt Airport.

"Integrated freighter and passenger belly operations still offer the best solution, and that solution is only available in Frankfurt," he said, adding that the German forwarding community was also centred around Frankfurt.

Source: Airline Business