Carrier in negotiations with Shenzhen Airlines to set up freight joint venture to serve Asia Pacific and Europe
Lufthansa Cargo is planning a joint venture with China's Shenzhen Airlines to establish an international cargo carrier in southern China.
"We are going to have a joint venture with Lufthansa Cargo... [and] we plan to start services early next year based in Shenzhen," says a senior source at Shenzhen Airlines.
Shenzhen Airlines will own 51% of the venture, while Lufthansa Cargo and an undisclosed foreign bank will control the remaining 49%, says the source.
The new airline will operate widebody aircraft to destinations in Asia Pacific and Europe.
"There are two aircraft types now being considered - the Airbus A300-600F and the Boeing MD-11F," says the source. Lufthansa Cargo already operates MD-11Fs.
He is unable to indicate how many aircraft are needed but says the joint venture partners are considering using wet-leased aircraft as an interim measure before switching to dry leases.
This is partly because the new airline needs an air operator's certificate from the CAAC, says the source.
Lufthansa Cargo has no services to Shenzhen, but in May it announced the establishment of a joint venture with Shenzhen airport to operate an international air freight terminal at the airport.
Lufthansa Cargo confirms it is talking to Shenzhen Airlines. "We are in negotiations, but at this point no contract or letter of intent has been signed so we are unable to comment further."
The airline says it expects to make an announcement in five to seven weeks.
Shenzhen is located near the Hong Kong border and is within China's Pearl River Delta region, which is developing rapidly with many factories having been built in the area.
LEITHEN FRANCIS / SINGAPORE
Source: Flight International
