Business and strategy

Lufthansa Cargo is the service provider for the logistics business in the Lufthansa Group. The Lufthansa subsidiary is based in Kelsterbach and is one of the largest cargo airlines in the world, offering its customers clearly defined transport times and high quality and safety standards.

Lufthansa Cargo’s field of activity extends across all three airfreight product segments: the standard segment with the td.Pro product, the express segment with td.Flash and the special segment with four competence centres for the transport of temperature-sensitive products, live animals, airmail and particularly valuable goods. In addition, Lufthansa Cargo offers ancillary logistics services which provide a sensible supplement to the core business of airfreight.

A worldwide network and the high frequency of flight connections are Lufthansa Cargo’s acknowledged strengths. Its strategy aims for industry leadership by profitable, continual growth in all traffic areas. For instance, Lufthansa Cargo offers its clients capacities not only on its 19 own MD11 freighters, but also on the belly capacities of the Boeing Jumbos belonging to its Chinese joint venture Jade Cargo International, and those of around 400 passenger aircraft from Lufthansa Passenger Airlines. Additional capacities are available from Swiss WorldCargo, Lufthansa Cargo Charter Agency and worldwide road feeder services. Lufthansa Cargo runs other airline cooperation programmes with Singapore Airlines Cargo, Japan Airlines Cargo, Air China Cargo and Lan Cargo. In total, Lufthansa Cargo’s route network covers some 300 destinations worldwide. In the future, Lufthansa Cargo will be able to offer additional capacities on Boeing 777-200F cargo aircraft operated by AeroLogic GmbH, its new joint venture in partnership with DHL Express.

Most of the cargo transported goes through the main hub, the Lufthansa Cargo Center at Frankfurt Airport. Another hub for freighter traffic is Leipzig/Halle Airport, one of the most modern and high-performance hubs in Germany, which gives Lufthansa Cargo long-term security in terms of planning and capital expenditure. The airport’s significance will go up again in 2009 when AeroLogic GmbH commences operations there.

A further strategic focus lies on strengthening market access to the growth regions in China. The company has already had a successful presence in China for a long time via its equity investment in the Shanghai Pudong International Airport Cargo Terminal (PACTL). Lufthansa Cargo is also well positioned in the booming economic region on the Pearl River Delta in China, thanks to its stake in the International Cargo Center Shenzhen (ICCS) and shares in the cargo airline Jade Cargo International. Following the delivery of the final aircraft in January 2008, the Jade Cargo International fleet now consists of six Boeing 747-400ER freighters. It has also been active in the Yellow River delta since January 2008. This is the site of Lufthansa Cargo’s 46 per cent equity investment in the handling company Tianjin Aircargo Terminal Ltd. (TAT) and the new Chinese boom region around the ambitious freight hub Tianjin, which is served by Jade Cargo International. Its involvement in China has given Lufthansa Cargo a good platform from which to benefit from future economic growth and also to service traffic flows from Asia to other regions.

In the airmail business, Lufthansa Cargo sets great store by its cooperation agreement with the Airmail Center Frankfurt GmbH, in which it holds a 40 per cent stake. The Lufthansa freight subsidiary processes the majority of its postal business at the company’s high-performance airmail handling site, which is the most up-to-date in Europe. Worldwide it flies more than 44,000 tonnes of airmail a year for around 200 postal companies.


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