Bruce Barnard/Special Correspondent | Mar 22, 2012 10:51AM EDT
Lufthansa Cargo plans to sell its 25 percent stake in Jade Cargo International, the China-based carrier that grounded its freighters in January pending a financial restructuring.
The German carrier, which lost around $21 million on its Jade stake in 2011, will dispose of its holding after securing permission from Chinese authorities, Lufthansa Cargo CEO Karl Ulrich Garnadt said.
Jade Cargo, which is preparing to resume flights, isn’t expected to be a financial burden in 2012, Lufthansa said.
Lufthansa will still be positioned strongly in China, with services to eight destinations, handling joint ventures in Shenzhen and Pudong and further cooperation with Air China, Garnadt said at the carrier’s annual press conference.
Lufthansa Cargo declined to comment on reports it will sell its Jade Cargo stake to Shenzhen-based transport and logistics company Unitop, which agreed in February to become a partner in the troubled carrier.
Shenzhen Airlines owns 51 percent of Jade, with German development bank DEG holding 24 percent.
Lufthansa Cargo booked operating profit of $326 million in 2011 but expects a lower result in 2012 because of a weaker Chinese market, global overcapacity and the night flight ban at its Frankfurt hub, which resulted in the loss of high-value express traffic, especially on the North Atlantic.
Contact Bruce Barnard at brucebarnard47@hotmail.
