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Lufthansa to expand cargo business
By Chen Qide (China Daily)
Updated: 2004-05-17 08:57

Lufthansa Cargo AG is seeking greater co-operation with Chinese airports to expand its cargo business.

"We plan to team up with China's second-tier airports so as to extend our cargo business into some of its major cities," said Jean-Peter Jansen, Chairman of the Executive Board of Lufthansa Cargo AG.

Jansen didn't give details of which airports would be chosen, saying that they would be announced immediately the board makes a final decision.

At present, the cargo carrier business focus is on Beijing, Shanghai, Sichuan Province and the Pearl River Delta with an eye on Hong Kong.

"All four areas are our major concern, but we are to spend more effort enlarging the market in Guangzhou," Jansen said.

"Guangzhou is not quite developed at the moment and it will be a future market," he said.

The cargo company now handles 720 tons of cargo weekly in Hong Kong, 450 tons in Shanghai and 250 tons in Beijing.

"We will extend our cargo business into new airports," Jansen said.

He said China is the second most important market for Lufthansa Cargo after its home market of Germany.

The carrier has seen its volume of freight business with China increase annually by 10 per cent over the past two years. And 11 per cent of its revenue last year came from China.

"It is not easy to earn revenue in China when the world's cargo business is in difficulties," he said.

Jansen said he believed the cargo business in China will continue booming this year because the country's strong economic growth would stimulate increasing imports of production facilities for foreign-funded projects launched in China, and exports of high-tech products manufactured by the ventures.

Lufthansa Cargo will phase out Boeing 747-200 freighters over the next two years and standardize its fleet exclusively with MD-11 freighters as part of its strategic development.

The cargo company is to augment the 14 freighters in its MD-11 fleet with five used passenger aircraft when they are converted into freighters. This project is scheduled for completion by January next year.

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