Lufthansa and Deutsche Post plan joint cargo airline

[Pieter C. 5]

Lufthansa, Deutsche Post Plan Cargo Airline

 

June 26, 2007

Lufthansa and Deutsche Post plan to set up a joint freight airline, a source familiar with the situation said on Tuesday.

 

Deutsche Post's DHL Express delivery business and Lufthansa's Cargo unit want to operate a fleet of cargo planes from 2009, the source said.

 

Germany's daily Die Welt reported earlier the companies would each hold a 50 percent stake in the operation.

 

A Lufthansa spokeswoman declined to comment on the report, but said Lufthansa had been co-operating with Deutsche Post, its largest customer in the freight business, in various ways -- including with DHL.

 

This co-operation would be developed further, the spokeswoman said.

 

In 2004, Lufthansa Cargo and DHL set up a cooperation deal which can be cancelled in 2009, which is also when the new cargo plane fleet is expected to be ready for operation.

 

The source said several issues still needed to be solved, such as the difficulty of getting the needed planes on time.

 

DHL is setting up its European cargo hub in Leipzig/Halle in eastern Germany, the location of the operating base of the new airline. Lufthansa would still keep its cargo business in Frankfurt, sources said.

 

DHL's rival Luxembourg-based Cargolux Airlines and Dubai-based airline Emirates had also shown interest in seeking bids for a joint cargo fleet.

 

(Reuters)