LUFTFAHRTGESELLSCHAFT WALTER, GmbH. (LGW): Flug-platz 11, Dortmund, Mordrhein-Westfalen, D-44319, Germany; Phone 49 (231) 21980; Fax 49 (231) 212 798; Http://www. lgw-flug. de; Code HE; Year Founded 1992. Bernard Walter establishes this third-level commuter operation at Dortmund in 1992. A workforce of 25 is recruited and a fleet of 2 Dornier 228-200s, 2 Cessna 404 Titan IIs, and 1 Pilatus Britten-Norman PBN-2 Islander is assembled. Revenue flights are inaugurated and continue, linking the company’s base with Hamburg, Erfurt, and Rostock.
Operations continue apace in 1993-2000. With the fleet enhanced with another pair of Dornier 228-200s, additional destinations visited include Berlin, Cologne, Dortmund, Dusseldorf, Hanover, and Koln/ Bonn.
LUFTHANSA CARGO AIRLINES, A. G.: P. O. Box 1244, Langer Ko-rnweg 34i, Keisterbach, D-6092, Germany; Phone 6107-777-700; Fax 6107-777-880; Http://www. lufthansa-cargo. com; Code LH; Year Founded 1977. German Cargo Airlines, GmbH. is established as a charter subsidiary of Deutsche Lufthansa, A. G. on March 10, 1977. For most of the next two decades, it will operate freight on behalf of its parent, using its aircraft and reporting its traffic figures with those of DLH.
To cut costs, Chairman Jurgen Weber unveils a new program on November 27, 1994 that will eliminate 8,400 jobs, abolish unprofitable routes, and spin off air freight, catering, and some passenger services to independent subsidiaries called profit centers. This is the first time an airline has divided its passenger and cargo operations into separate entities; the practice will become common.
Lufthansa Cargo Airlines, A. G. stands alone as of January 1, 1995. Wilhelm Althen, a former DLH vice president who had served with GCA, is named chairman and oversees a workforce of 4,800. The fleet includes 2 Boeing 737-230Cs, 1 of which is leased from Air Atlanta Icelandic H. F., 1 leased B-737-3S3F, 1 leased B-737-3S3F, 5 B-747-230Fs, 1 of which is charted to Atlas Air in the U. S., 6 leased B-747-230BFs, 2 leased Douglas DC-8-73AFs, and 3 leased DC-8-73CFs.
The company operates a huge network. There are 15 destinations in Africa, 27 in Asia and the Pacific, 24 in Germany and the CIS, and several in North America, including New York. A partnership arrangement, completed the previous year, is in place with Aviatrans Airlines and covers service via Moscow to 56 CIS locations.
To meet the escalating demands of exporters of textiles and agricultural products, the carrier inaugurates twice-weekly service to Tirana, Albania, in September. The pact with Aviatrans is renewed and enhanced in December.
During its first year as an independent, LCAG operates 6.23 billion FTKs, a 9.6% increase.
Airline employment in 1996 totals 4,883. Early in the year, a hub is established at Sharjah, UAE, to serve as a center for all-cargo flights to and from the Indian subcontinent.
At the end of April, the number of weekly all-cargo frequencies operated with Singapore Airlines, Ltd. from Singapore to Frankfurt via Sharjah is increased from twice weekly to four times a week.
Transatlantic services are significantly increased during the summer as the carrier operates 35 flights weekly to the U. S. and Canada. At the same time, the company invests 40% minority shareholding in and receives a management contract from the new Hinduja Cargo Services, Ltd. (also known as Lufthansa Cargo India). Headquartered at Delhi, the new carrier, 60% held by the nonresident London-based Hinduja Group, leases three B-727-243Fs with which to begin operations.
In September, Hinduja Cargo Services, Ltd. contracts with the American freight charter operator Custom Air Transport to provide flight services to Sharjah, UAE, from six cities on the subcontinent. A total of 1.03 billion tons of cargo are flown worldwide this year and revenues of $1.88 million are generated.
The company’s sixth Indian cargo market is opened by Hinduja Cargo Services, Ltd. at Hyderabad in 1997 when its B-727-243Fs, flown by Custom Air Transport crews, inaugurates services; the market joins the GCA destinations of New Delhi, Bombay, Madras, Bangalore, and Kathmandu. Flights are also made to Colombo, Sri Lanka.
An order is now placed for three McDonnell Douglas MD-11F freighters; it is the first new order for the MD-11 since Singapore Airlines, Ltd. had cancelled its request back in 1991.
It is reported in September that, for the first six months of the year, the carrier has posted a DM 33-million ($18.7-million) profit as compared to a DM 44-million loss of the same period a year earlier.
In mid-October, the company inaugurates weekly service into Indonesia’s new Hang Nadim Airport, which is located just 20 miles from Singapore.
When LCAG determines during the month that it no longer requires its 25.4% stake in Cargolux International Airlines, S. A., that shareholding is sold by parent Deutsche Lufthansa, A. G. to Swissair, A. G.’s
Swisscargo, which is owned by SAirGroup’s SAirLogistics subsidiary.
In December, LCAG executives meet near Frankfurt with the cargo directors of the five airlines in the “Star Alliance” to coordinate plans for the creation of a global air-cargo system.
For the year, the company’s 15 freighters operate 6.44 million FTKs, a 3.4% rise, and haul 1.05 billion tons of goods. Revenues ascend to $2.15 billion.
At the beginning of 1998, LCAG is the 2nd largest airline in the world in terms of freight carried and the 24th in net profit. The fleet now includes 11 B-747-200Fs and 5 MD-11Fs.
In January, in a continuing effort to develop and expand joint products and cooperation, the carrier enters into a series of “business partnership plans” with selected air freight forwarders. These include Jet Speed (Pty.), Ltd. in Hong Kong, Hellmann International Forwarders, GmbH. in Germany, and the U. S. concerns Expeditors International and Air Express International.
A subcontract is entered into with HeavyLift Cargo Airlines, Ltd. in February. It is operated from Frankfurt to and from Athens and Istanbul by an Airbus Industrie A300B4-203F chartered from HeavyLift and flown under contract by TransAer International Airways, Ltd. At the end of February, the LCAG board approves the purchase of three additional MD-11Fs, with delivery scheduled for February 1999.
The company, on April 1, commences “td. Flash” and “td. X” express services in an effort to provide the same sort of time-definitive and traceable delivery of general packages and cargo as is offered by Federal Express and UPS (United Parcel Service). The new product is introduced at 53 Deutsche Lufthansa, A. G. stations in Germany and Europe.
A ceremony at Frankfurt on July 1 marks the arrival of the first two MD-11Fs from Long Beach.
As the result of negotiations successfully completed during the summer for a joint weekly all-cargo service with SAS (Scandinavian Airlines System) and Japan Air Lines Company, Ltd. (2), an LCAG B-747-230F begins flying on behalf of the three between Frankfurt, Goteborg, and Osaka on September 21.
The carrier’s North Asia headquarters are moved to Shanghai in October.
The company greatly expands its express product line during November. The time-definite services are available to 100 destinations.
On the year, cargo traffic ascends 2.2% to 6.69 billion FTKs. Financial data is released with that of the parent group. It is noted that, having handled 93,000 tons on 4,200 flights, Sharjah is now the carrier’s second largest cargo hub behind Frankfurt.
In a joint service with Air China International Corporation, Lufthansa Cargo, on January 15, 1999, inaugurates weekly roundtrip allcargo flights between Frankfurt and Shanghai employing one of its MD-11Fs. These direct freight flights are upgraded to twice weekly in March.
Also during the first quarter, the company announces that it will temporarily suspend services into Dallas (DFW) from March 26 through October 29 in order to implement growth elsewhere and allow freighter rotation.
Frequencies on the joint service between Frankfurt, Goteborg, and Osaka are increased to three per week during April.
Also at the beginning of the second quarter, the company’s express product line is boosted. Not only are 63 destinations added to the schedule just for these time-definite services, but a new tailor-made and integrated package, Service Package, is also introduced.
In something of a surprise move, LCAG resumes MD-11F flights to Dallas (DFW) on May 31, five months earlier than it had anticipated. Large quantities of high-tech equipment, computers, petroleum and chemical machinery, live animals, and perishables are flown from the Texas airport, thrice weekly to Mexico City and four times a week to Frankfurt. A high volume of auto-related parts and perishables come in from Mexico.
It is announced on September 1 that, effective November 1, weekly frequencies between Frankfurt and Kuala Lumpur, Malaysia, will be increased from one to three.
During September, a 29% stake is taken in a joint venture with Pudong International Airport (51%) and Jim Hai Jet Air (20%) to operate a large new cargo terminal at this Shanghai airport.
The cargo division of KLM (Royal Dutch Airlines, N. V.) informs HeavyLift Cargo Airlines, Ltd. on October 6 that it will not, in light of the forthcoming merger by the Dutch carrier with Alitalia, S. p.A., be renewing its contract for the lease of two British A300 freighters. In response, HeavyLift now turns around and leases one to Lufthansa Cargo. Also in October, Pudong International Airport at Shanghai opens a new cargo terminal that it jointly operates with Lufthansa Cargo.
Cargo traffic jumps 5.6% to 7.07 billion FTKs.
The workforce at the beginning of 2000 totals 4,883. Among the world’s top 25 airlines, Lufthansa Cargo is 2nd in FTKs.
It is reported in March that DHL Airways will soon be taken over by the combined forces of Deutsche Post and Deutsche Lufthansa, A. G. Each has a 25% + 1 share stake in the company and its European counterpart, DHL International. Although smaller than either Federal Express (FedEx) or United Parcel Service (UPS), DHL Worldwide Express (parent of both DHL-A and DHL-I) leads both in cross-border mail and express deliveries (38% against 20% for the former and 15% for the latter). It has also made purchases in trucking, logistics, and air freight that rivals both of the American giants.
The story is part of a general revelation in the aviation media that Deutsche Post and Deutsche Lufthansa Group are reviewing several schemes for a joint-venture (code-named PELIKAN) merging of their logistic activities. PELIKAN would see the joining of DHL Worldwide with Lufthansa Cargo with Deutsche Post-owned Air Express International.
At this point, United Parcel Service (UPS) demands that the EU Commission require Deutsche Post to split up its commercial and public service activities. UPS had originally petitioned the EUC in 1994 alleging unfair competition in the parcel post sector; now it emerges that Deutsche Post has invested almost $5 billion in the years since to build up its parcel post activities, while recently engaging in alliance discussions with both DHL and Deutsche Lufthansa, A. G. It is anticipated that the Commission will respond by April, but it will not open its formal investigation until August.
On April 16, the company reaches an agreement with Philippine Airlines under which the latter will sell space aboard the German line’s Manila to Frankfurt cargo flights.
It is revealed on April 20 that Lufthansa Cargo is terminating its arrangement with Hinduja Cargo Services, Ltd., which has been feeding the German major’s Frankfurt-bound MD-11Fs at Sharjah for flights to India. With increased demand, Lufthansa Cargo is now operating its Frankfurt service nonstop.
It is announced on April 27 that the carrier is joining with SAS (Scandinavian Airlines System) and Singapore Airlines, Ltd. to create an air freight joint venture to be known as New Global Cargo. The new entity will integrate the cargo networks of the three founders; based at Frankfurt, it will eventually have 60 long-range freighters and operate to 500 destinations in 35 nations.
During May, Lufthansa Cargo moves closer to several air freight forwarders in May when it enters into an alliance with Deutsche Post, owner of Danzas and AEI.
A commercial and operational alliance is formed between Lufthansa Cargo and the cargo division of VARIG Brazilian Airlines (Viacao Aerea Rio Grandense, S. A.) on May 31. When the partnership takes effect on November 2, the German line will be able to instantly boost its business in Brazil, while the Brazilian carrier will be able to increase sales by 40% without any new aircraft. Frequencies between Brazil and Germany will grow from five to nine weekly flights, with incoming cargo connections made via VARIG for Bogota, Buenos Aires, and Montevideo.
In early July, Jean-Peter Jansen becomes chairman of the carrier’s executive board.
On August 20 and 21, two B-747-230F depart Frankfurt with 91 horses that are being transported 20,000 km. to Sydney for the Olympic Games via Dubai and Singapore. Another B-747-230F transports 52 horses from the U. K. Olympic Equestrian Team in Australia on August 23, followed by another B-747-230F, from Frankfurt, transporting 45 more four-legged contestants, including all 17 from Germany’s 3 Olympic equestrian teams.
On August 22, Flight International, in its annual commercial airline survey, reports that Lufthansa Cargo is the second largest cargo airline in the world after Federal Express (FedEx).
The horses transported to Australia in late August are all returned to Europe on special October 2-6 charters.
On November 2, Lufthansa Cargo and DHL Worldwide Express jointly announce the introduction of their first cooperation in Russia and the CIS, a daily return cargo service from Moscow to Cologne. As a result of the new route, DHL will be able to significantly reduce its delivery times, allowing 90% of deliveries to and from Moscow to be delivered the next day, with times to 30 cities in Russia and the CIS via Moscow to be reduced as well.
Deutsche Post, A. G. completes an initial public offering on November 20 and moves to acquire a controlling 70% stake in DHL
Worldwide Express. It also begins the process of forming a closer alliance with Lufthansa Cargo.
Later in the month, Lufthansa Cargo takes over the management of all cargo activities for Spanair, S. A., including its three international freight flights.
In December, new Chairman Jean-Pierre Jansen and his second in command, Andreas Otto, reform the company. Effective January 1, it will have three major divisions: Global Freighter Operations (flight operations), Global Cargo Handling Services (ground handling), and Global Cargo Net (e-commerce). Also, as the year ends, it is announced that the carrier will, in January and February, take delivery of the last two MD-11Fs purpose-built at Long Beach and employ them to launch a new thrice-weekly service to Melbourne via Auckland.
A total of 1,801,817 tons of cargo and mail are delivered during the year, a 3.2% increase over 1999.
At a Long Beach, California, ceremony attended by almost 1,000 people on March 1,2001, Lufthansa Cargo will accept delivery of the 200th MD-11, the last aircraft to be built under the McDonnell Douglas—or Douglas—name. The event will occur 80 years almost to the day after Donald Douglas flew his first plane.
World History
