Business and strategy

Lufthansa Cargo is a successful global player

Lufthansa Cargo is the service provider for the logistics business in the Lufthansa Group. The company has 18 Boeing MD-11 freighters of its own, and these are supplemented by the freight capacities of the Lufthansa and Austrian Airlines passenger fleets as well as the equity investment AeroLogic. This makes it one of the world’s leading cargo airlines. The shareholders of AeroLogic GmbH are Lufthansa Cargo and DHL Express, which each hold 50 per cent. The two companies are the sole users of the capacities of the eight Boeing 777F aircraft, with Lufthansa Cargo mostly using the capacity at the weekend. The Chinese company Jade Cargo International, in which Lufthansa Cargo holds a stake of 25 per cent, is undergoing financial restructuring, during which flight operations have been suspended.

Composition of Logistics capacity (pie chart)

A broadly diversified product portfolio

The focus of Lufthansa Cargo’s operations lies in the airport-to-airport business. Its product portfolio in this segment covers both standard and express freight. Transport of special goods forms an important pillar of the product range. The carriage of live animals, valuable cargo, mail, dangerous goods and above all temperature-sensitive goods, plays an ever growing role. The main hub for the freighter fleet is Frankfurt. Other main hubs are Munich and Vienna. All the product segments benefit from a tightly meshed global network of around 300 destinations in more than 100 countries, which is made possible by combining the capacities from the different production platforms.

In addition to aircraft, freight consignments are also transported by lorry in road feeder services. These are principally used for transport to and from airports. Lufthansa Cargo Charter Agency GmbH is available for highly individualised transport. The Lufthansa Cargo subsidiary specialises in ad hoc charter solutions for goods of all dimensions.

The freight capacities of Lufthansa subsidiary SWISS and stake Brussels Airlines are not marketed directly by Lufthansa Cargo, but the group nevertheless enjoys a close partnership with the freight divisions of these airlines.

Lufthansa Cargo has strategically important subsidiaries and equity investments. Jettainer GmbH is a global provider of management services for loading aids such as containers and pallets.

The portfolio of the Lufthansa Cargo group also includes the wholly owned subsidiary handling counts GmbH, which specialises in freight handling at Frankfurt Airport, and the equity investment in time:matters GmbH, an express provider specialised in courier, same-day and emergency logistics.

In the Asian growth markets too, Lufthansa Cargo traditionally has a strong position thanks to its stakes and joint ventures. Equity investments there include stakes in the Shanghai Pudong International Airport Cargo Terminal and in the International Cargo Center Shenzhen.

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