Saying the carrier needed to prioritize capital investment in other directions, Lufthansa CEO Carsten Spohr said that a new cargo handling center, which was to be constructed at Frankfurt Airport, will be delayed for at least two years. Addressing a general meeting of Deutsche Lufthansa AG, Spohr said investment in 2015 will be €2.9 billion, but will be limited to €2.5 billion invested each year in 2016 and 2017, thus necessitating the construction delay at Frankfurt.
The need for the new cargo center in Frankfurt, which is to be called LCCneo, will still be a priority and is still considered a good investment. “Air cargo is a core business for us, and Lufthansa Cargo is an important and successful factor of differentiation of our group,” said Harry Hohmeister, a member of the executive board of Deutsche Lufthansa AG and chairman of the supervisory board of Lufthansa Cargo AG.
Peter Gerber, chairman of the Lufthansa Cargo executive board said the LCCneo is significant to its “Lufthansa Cargo 2020” strategy for the future. Presently, five 777 freighters fly for Lufthansa Cargo, and the cargo arm will complete modernization of its IT systems this year. Additionally, the carrier is working closely with Japan’s ANA Cargo on routes between Japan and Europe. Lufthansa Cargo is also digitalizing all of its processes and advocating for Frankfurt as an air cargo location.
The LCCneo was first announced in 2013, and it was to be constructed by 2018.
Meanwhile, the group said it intends to establish Eurowings, a pan-European secondary brand, and develop a low-cost carrier with more than100 aircraft.