Lufthansa, Cathay Expand Service

Lufthansa, Cathay Expand Service

Copyright 2004, Traffic World, Inc.

Even in the midst of a fleet contraction, Lufthansa Cargo is looking for strategies to add capacity.

The German airline created a joint venture with Hong Kong-based Cathay Pacific Airways to share a freighter between Munich and Hong Kong starting Aug. 15 using a wet-leased 747-200.

The airlines long have had a service relationship between Hong Kong and Frankfurt but the three-times-weekly service through Dubai with an aircraft outside either carriers'' fleet deepens their ties.

The addition of a Munich route means they also will serve Germany''s second largest cargo market.

Separately, "cargo counts," which Lufthansa Cargo spun off into an independent operating unit at the end of 2003, has nailed down some new business. Cargo counts handles the cargo business of other airlines, including Spanair.

Cargo counts signed its first total cargo management agreement since becoming autonomous with German carrier Hapag-Lloyd Flug, part of a strategy at the business unit to handle cargo business on an outsourced basis for second-tier passenger airlines. The Hanover, Germany-based carrier flies 34 passenger planes within Europe.

Cargo counts will handle all cargo-related services for Hapag-Lloyd Flug with the company retaining the flight operations and ramp handling duties.

"We gave this far-reaching agreement very careful consideration, and we expect the collaboration to produce double-digit growth rates in tonnage and earnings," Hapag-Lloyd Flug CEO Wolfgang John said in a statement.

Cargo counts also recently secured its first Asian customer when it formed an alliance with AirAsia, a low-cost passenger carrier. The airline signed a three-year cargo management contract with cargo counts.

Cargo counts will do cargo management for Malaysia and international markets for AirAsia.