Thursday, February 25, 2010

Lufthansa and Austrian Air To Combine Air Freight Ops

Lufthansa To Take Over Global Services
Shipping News Feature

GERMANY / AUSTRIA – Lufthansa Cargo and their subsidiary Austrian Airlines have announced that they are to integrate their air freight services. The new plans will see both companies integrate their freight distribution and handling services in Austria’s Vienna hub with worldwide services all coming under Lufthansa cargo’s operations.

Carsten Spohr, CEO and Chairman of Lufthansa Cargo, said that: “Vienna Schwechat will become a central European hub for Lufthansa Cargo comparable to our German hubs at Frankfurt and Munich. Thanks to Austrian’s excellent route network, Lufthansa Cargo customers will also be able to take advantage of direct flights to destinations in all corners of the globe.”

The move is hardly surprising considering the difficulties that the European airfreight industry, and Lufthansa in particular, have experienced in the last year. These have made the necessity of squeezing every saving out of operations imperative and the doubling up of operations is a luxury that the group can no longer afford.

By integrating Austrian Cargo’s business, which in 2008 generated revenue of approximately 140 million euros, the German giant trims its sails further and make its services more efficient in the face of increasing competition from Asian carriers.