Executive Briefings

Logistics Services World Takes a Hit as Jade Cargo Shuts Down

After grounding its fleet of six Boeing 747-400ERFs on Dec. 31 due to depressed demand, Jade Cargo International has officially shut down. The liquidation of the Chinese carrier - of which Shenzhen Airlines, Lufthansa Cargo and German investment firm DEG hold a 51-percent, 25-percent and 24-percent stake, respectively - comes on the heels of numerous capacity cuts in the Asia-Pacific region.

In February, Jade Cargo announced a possible restructuring deal between its shareholders and the Shenzhen-based UniTop Group. Unfortunately, the deal fell though, a Lufthansa Cargo spokesman said.

"Due to the ongoing weak demand for air cargo services to and from China, the restructuring of Jade Cargo could not be successfully concluded," the spokesman said.

More carriers are likely to follow Jade Cargo's lead, industry insiders believe. In fact, Grandstar Air Cargo, the Tianjin-based carrier co-owned by Sinotrans Air Transportation Development Co. and Korean Air Cargo, has recently suspended operations after losing $53m last year.

The slump in China's appetite for airfreight is likely to blame for such cuts.

Read Full Article

In February, Jade Cargo announced a possible restructuring deal between its shareholders and the Shenzhen-based UniTop Group. Unfortunately, the deal fell though, a Lufthansa Cargo spokesman said.

"Due to the ongoing weak demand for air cargo services to and from China, the restructuring of Jade Cargo could not be successfully concluded," the spokesman said.

More carriers are likely to follow Jade Cargo's lead, industry insiders believe. In fact, Grandstar Air Cargo, the Tianjin-based carrier co-owned by Sinotrans Air Transportation Development Co. and Korean Air Cargo, has recently suspended operations after losing $53m last year.

The slump in China's appetite for airfreight is likely to blame for such cuts.

Read Full Article