Jade Cargo reaches end of runway

The deal between Jade Cargo’s shareholders – Shenzhen Airlines (51 per cent), Lufthansa Cargo (25 per cent) and German state-owned bank subsidiary DEG (24 per cent) – with China’s UniTop has failed, leaving the carrier to be liquidated.


Jade Cargo


The deal between Jade Cargo’s shareholders – Shenzhen Airlines (51 per cent), Lufthansa Cargo (25 per cent) and German state-owned bank subsidiary DEG (24 per cent) – with China’s UniTop has failed, leaving the carrier to be liquidated.

The news came after the troubled Chinese carrier grounded its freighters in January because of weak demand, but had a glimmer of hope when Lufthansa announced in March that talks were underway with a new investor, UniTop. Shortly after that the German carrier, which lost around US$21 million on its Jade stake in 2011 – said it hoped to sell its stake to UniTop. China’s UniTop,
which operates a fleet of three B747Fs was in the process of restructuring which, according to reports, made the deal with
Jade shareholders “unpredictable”.

In Beijing last month Lufthansa chief executive Christoph Franz enunciated what many long suspected was to be the fate of the carrier which has had a chequered history. “We are a minority
shareholder, but the shareholders all together agreed that we will dissolve the company. “There is too much capacity,” Franz said.

With its fleet of six B744-ERF freighters, the carrier served 21
destinations worldwide from its hubs in Shenzhen, Shanghai and Tianjin in China, with the emphasis on routes to Europe, India and the Middle East.