Bruce Barnard, Special Correspondent | Apr 05, 2012 10:32AM EDT
Lufthansa Cargo will make a final decision on investment at Frankfurt airport this summer after a court upheld a night flight ban at its global hub.
The airline had said investment totaling $1.3 billion depended on whether Germany’s administrative court approved a lower court’s ban on flights between 11 p.m. and 5 a.m. that came into effect in late October.
“The decision [on investment] will come towards the end of the third quarter. We have to see how customers react to the new summer flight ban,” Lufthansa Cargo chief executive Karl Garnadt said.
Lufthansa Cargo, which was due to operate 10 daily night flights at Frankfurt, also warned a permanent ban might force it to sell its fleet of 18 MD-11 freighters. Before the ban, Lufthansa transported a third of its cargo on night flights.
The airline, which estimates the ban will cut annual profit by more than $50 million, has lost significant business, including high value express shipments to the U.S. following the night flight ban.
Contact Bruce Barnard at brucebarnard47@hotmail.com.