Jade Cargo anticipates restructuring deal
After grounding of its fleet of six Boeing 747-400ERFs at the end of December, Jade Cargo International has announced a probable restructuring deal. The Shenzhen Airlines and Lufthansa Cargo joint venture posted a note on its website detailing a letter of intent signed between its shareholders and the UniTop Group.
“The UniTop Group, based in Shenzhen, is a fast-growing and dynamic logistics and transportation company who is looking to strengthen their position in the international air cargo market,” read the statement posted on Jade Cargo’s website. “With this step, the restructuring of Jade Cargo has taken a positive step forward, benefiting all stakeholders. Further information will be provided in the short term.”
Jade Cargo posted a similar note on its website on December 31, announcing the suspension of operations due to weak cargo demand out of the Asia-Pacific. Chief destinations served by Jade Cargo include Chennai International Airport, Incheon International Airport and Frankfurt Airport.
Jade Cargo utilizes Shenzhen Bao’an International Airport as its primary hub. Shenzhen Airlines has majority stake in the carrier, owning 51 percent of it. Moreover, Lufthansa Cargo and DEG each possess 25 percent and 24 percent of Jade Cargo, respectively.
Lufthansa Cargo received a giant endorsement last April, however, when its vice president of margin management, Frank Naeve, took over as CEO of Jade Cargo. Unfortunately, six months later, Lufthansa CEO Christoph Franz revealed that the carrier wouldn’t rule out selling segments, such as Jade Cargo, if profitability remained low.
“We shall withdraw from loss-making units without a reasonable turnaround perspective,” Franz stated in October.