Bruce Barnard, Special Correspondent | Jun 08, 2012 8:35AM EDT
Jade Cargo International is being liquidated after shareholders, including Lufthansa Cargo, failed to agree on a restructuring of the financially troubled Chinese all-cargo airline.
“Due to weak demand for air cargo services to and from China, the restructuring of Jade Cargo could not be successfully concluded,” Lufthansa Cargo, which owns 25 percent of the Shenzhen-based carrier, said.
“At the end of December 2011, Jade Cargo was already forced to suspend operations.”
“In view of the latest developments the Board of Directors has decided to voluntarily dissolve the company subject to all required government approvals for this process.”
The airline, which began operations in April 2011 with six Boeing 747-400 extended range freighters — three leased and three owned — is said to have debts of $707 million and assets worth $534 million.
Lufthansa Cargo said it lost $47.5 million on its Jade stake, which was included in its 2011 results. The German carrier reportedly was in negotiations earlier in the year to sell its shareholding to UniTop, a Chinese transport and logistics company that agreed in February to become a partner in the troubled airline and organize its restructuring.
Shenzhen Airlines owns 51 percent of Jade, with German development bank DEG holding a 24 percent stake.
Grandstar Cargo, a joint venture airline between China’s Sinotrans and Korean Air, also is reported to be facing liquidation.
Contact Bruce Barnard at brucebarnard47@hotmail.com.