Lufthansa takes cautious stance on mainland, India

Frankfurt: Signs that the pace of growth in Chinese air cargo volumes is beginning to peak and increasing fears about excess freighter capacity in India are encouraging Lufthansa Cargo to take a cautious approach to future main deck operations in those markets.
The German carrier has already switched some of its former China market freighter capacity onto North Atlantic routes and decided to hold back from any possible investment in an Indian all-cargo airline, at least for the time being.
Those were some of the points to emerge from a recent press briefing given by Lufthansa Cargo in Frankfurt. The focal point of the event was a presentation by the carrier outlining general trends in the global air cargo industry, based on the research findings of a variety of organisations, notably German air cargo industry consultancy Aviainform and US group MergeGlobal Inc (MGI).
Overall, said Andreas Otto, Lufthansa Cargo executive board member, product and sales, the worldwide air cargo market was expected to average 5.4 percent growth annually in the years 2007-12 to total 28 million tonnes a year by the end of that period, 40 percent more than the 20 million tonnes achieved in 2006.
"Our expansion in China is now somewhat stagnating because of the poor growth of export air cargo into that market. We have had to do something about that. One of our responses has been to switch some (freighter) capacity from that market to the North Atlantic."
Turning to prospects for the overall Indian air cargo market, Otto said research suggested 2007-12 would see "strong growth" averaging 6.4 percent a year. However, he played down speculation in some quarters that Lufthansa Cargo might invest in an Indian freighter operation, possibly along the lines of its established involvement with Chinese airline Jade Cargo International.
28/01/08 Phil Hastings/Cargonews Asia

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Categories: cargo Jan 2008, Foreign Jan 2008