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Formed in 2007 and starts operations in 2009. International, scheduled, cargo jet airplane services.
Schkeuditz, Leipzig D-04435, Germany
Germany (Federal Republic of Germany) was established in 1949, it covers an area of 356,945 sq km, its population is 85 million, its capital city is Berlin, and its official language is German.
January 2008: Lufthansa Cargo (LUB) will expand its foothold in China with a joint venture with Hua Yu Air Cargo Terminal Co (HYACT) at Tianjin Binhai (TSN). A new 90,000-sq-m air cargo center is expected to become operational this year, and will offer the capacity to handle 360,000 tons of cargo annually. (LUB) will own a 46% stake in (HYACT), while Taiwanese investor Hwa-Hsia International Holding will hold 49%, and Tianjin Airport International Logistics will have the remaining 5%. Tianjin's growing importance as a Chinese cargo hub will be enhanced this summer during the Olympic Games, when most cargo flights are expected to divert from Beijing to (TSN). (LUB) currently is part of cargo Joint Ventures (JV)s at Shanghai Pudong and Shenzhen. It also owns 25% of Jade Cargo International (JDC), which operates six 747-400Fs from Shenzhen.
Airlines throughout the world are contending with antitrust charges made at the end of 2007 by the European Commission (EC), which has accused at least 11 and as many as 25 carriers of "cartel" activity relating to airfreight transport. In addition to British Airways (BAB), Japan Airlines (JAL), Air France (AFA)/(KLM), (SAS) Group, and Cargolux (CLX) (all of which confirmed receipt of statements of objections from the (EC) before Christmas). (ANA), Air New Zealand (ANZ), Air Canada (ACN), Cathay Pacific Airways (CAT), (LAN) and Singapore Airlines (SIA) have admitted to being charged.
Lufthansa (DLH), meanwhile, confirmed reports that it is avoiding charges by cooperating with the (EC) probe. "The European Commission (EC), the antitrust department of the USA Dept of Justice and other cartel authorities have granted Lufthansa (DLH) conditional immunity from fines," it said. "Lufthansa (DLH) is working very closely together with the cartel authorities in their investigations of the air transport industry."
Carriers charged late last year, have two months from the receipt of statements of objections to respond in writing to the (EC) and also have the option of requesting a formal hearing. An airline found guilty or admitting to guilt can be fined up to 10% of its annual revenue.
Lufthansa (DLH)/(LUB) and (DHL) Express announced that their 50/50 joint venture (JV) cargo airline, "AeroLogic (AGC)" will be based at Leipzig/Halle Airport and have a fleet comprising 11 leased 777Fs by 2012. The first eight airplanes will be leased from Deucalion Capital VII, which is managed by Germany's DVB Bank. Boeing (TBC) said the 777Fs, valued at $2 billion, originally were ordered by Iceland's Avion Group in 2005 and were "picked up" by Deucalion in late 2007 after Avion terminated its order. Boeing (TBC) will deliver the first four to AeroLogic (AGC) next year, ahead of the carrier's summer 2009 launch, and four more will be delivered in 2010. AeroLogic (AGC), which will paint its airplanes gray and yellow, plans to take delivery of two more in 2011 and one in 2012. No purchase/lease agreement was announced regarding the remaining three airplanes.
Lufthansa Cargo (LUB) Chairman & CEO, Carsten Spohr said the (JV) airline "is the culmination of a successful partnership that has existed for many years between (DHL) Express (DHK) and Lufthansa Cargo (LUB)." The venture first was announced four months ago. The new carrier will be guided by co-Managing Directors, Thomas Papke (from (DLH)) and Thomas Pusch (from (DHL)). Papke said it aims to rank "among the top five cargo carriers in Europe." Pusch added that AeroLogic (AGC) plans "to fly a route network which, in addition to the major Asian cities, includes exciting destinations across North America." The company did not provide specifics of the route network. It officially started business with 20 employees and plans to hire +250 more, including 200 pilots (FC). (LUB) and (DHL)/(DHK) will be responsible for sales and warehouse handling for the new carrier. "For customers of the parent companies, AeroLogic (AGC) will mean more capacity, more flexibility, an expanded network and improved operating times," (LUB) and (DHL) said.
February 2008: Deucalion Aviation Funds signed a Letter of Intent (LOI) with Air France (AFA) to acquire six 747-400 passenger airplanes for conversion and subsequent delivery in 2009 and 2010. Deucalion will convert the airplanes to full freighters at the Israeli Aircraft Industries (IAI)/Bedek conversion facility, with the first expected to be available in September 2009. Marketing of the freighters is being undertaken by DVB Bank, which manages Deucalion - most likely to "AeroLogistics (AGC)," a new joint venture (JV) of Lufthansa Cargo (LUB)/(DHL)/(DHK).
March 2008: Russian authorities extended Lufthansa Cargo (LUB)'s overflight rights through March. They were scheduled to expire at the end of this month, according to press reports. Russia temporarily suspended (LUB)'s rights in a dispute over the location of its hub. The carrier bases in Astana, but Russia prefers that it hub out of Krasnoyarsk.
Later, Germany and Russia reached an agreement on moving Lufthansa Cargo (LUB)'s regional transit hub from Astana in Kazakhstan to Krasnoyarsk in Siberia, ending a dispute that had resulted in the temporary cessation of (LUB)'s Russian overflight rights. "Our overflight rights via Russia are now granted," (LUB) Chairman & CEO, Carsten Spohr said, adding that (LUB) will move to Krasnoyarsk, once operational and commercial conditions are met and modernization projects at the airport are completed. He expects the earliest possible date to be sometime in 2009. (LUB)'s overflight rights had been granted on a temporary basis through this month. The routing via Siberia saves 30 minutes of flying time between Europe and the Far East. Nevertheless, weekly frequencies via Astana will be reduced from 49 to 35 within the next year, as more flights to Asia operate nonstop. Test flights from Krasnoyarsk will begin in June, Spohr said, adding that he does not anticipate (LUB) incurring extra costs as a result of the transfer.
The decision came on the heels of (LUB)'s announcement that it increased its full-year 2007 operating profit to +€135.6 million/+$87.3 million, up +66.4% from the €81.5 million posted in 2006. The operating improvement came despite a -3.8% decrease in revenue to €2.74 billion. (LUB) transported 1.8 million tons of freight and mail last year, up +2.6%, and load factor climbed +1.4 points to 69.1% LF, a company record. It operates 22 MD-11Fs, including three leased from World Airways (WLD), and uses belly capacity on Lufthansa (DLH)'s passenger fleet.
Spohr said the company is seeking to overcome concerns about overcapacity, particularly in Asia, by integrating the cargo operations of (LUB)'s various ventures. "That's why we work in a global group and spend a lot of effort to combine our group on a single intelligent platform," he said. The Lufthansa (DLH) Group includes (LUB), AeroLogic (AGC) (the joint venture with (DHL)), Swiss Cargo (CSR), Jade Cargo international (JDC), and (LUB) Charter. (LUB) holds a 7.5% global market share and "with Jade Cargo (JDC), AeroLogic (AGC) and so on, this level will grow in the future," Spohr predicted.
July 2008: Austrian Airlines (AUL) reached agreement with AeroLogic (AGC), the Lufthansa Cargo (LUB)/DHL cargo joint venture, to train its pilots (FC) for type ratings for the 777-200F.
September 2008: Boeing (TBC) said that AeroLogic (AGC) selected its Maintenance Performance Toolbox and Airplane Health Management Web solution for its 777F freighter maintenance documentation platform. The technology is expected to streamline management of technical publications, training, and customization of online maintenance manuals.
February 2009: Lufthansa Technik (DLH) (LTK) signed a 10-year Total Technical Support (TTS) contract with AeroLogic (AGC) to provide maintenance services on 11 777F freighters. (TTS) includes (LTK)'s Technical Operations Management product and covers Maintenance Repair & Overhaul (MRO), component logistics and planning activities. Delivery to (AGC) is scheduled to begin in May.
March 2009: AeroLogic (AGC), the new joint venture between Lufthansa Cargo (LUB) and DHL, is on schedule to begin flying in June from Leipzig/Halle. "There is no danger that there will be a delay in operations. We will get the first 777-200LRF in May and expect another three airplanes during this year," (LUB) Chairman & CEO, Carsten Spohr said in Frankfurt. During weekdays, the airplanes will operate for DHL on routes to Singapore, Delhi, Hong Kong, Bahrain and Tashkent. On weekends the 777s will be handled by (LUB) and fly from Frankfurt. (AGC) has 11 777s on order.
May 2009: AeroLogic (AGC) took delivery of the first of eight 777-200Fs. A second airplane is due in July, with the next two scheduled for December delivery. It plans to operate all eight by December 2010 and said it is considering adding more 777Fs over the next two years. The first scheduled flight is set for June 29.
777-FZN (36001, D-AALA), Deucalion Capital VII leased.
June 2009: Aerologic (AGC) officially launched operations this month.
The first of eight 777-200Fs was delivered last month and it plans to operate four of the type by year end. (AGC) said it expects +5% annual growth over the medium term on routes between Europe and Asia. The maiden commercial flight was June 29 on a Leipzig - Bahrain - New Delhi - Singapore routing, to be followed by a Leipzig - Tashkent - Hong Kong flight.
"The foundation of the new airline demonstrates the readiness of both parent companies to improve the range of services for customers and our confidence in being able to establish a new, strong enterprise on the world market," Lufthansa (DLH) Chairman & CEO, Wolfgang Mayrhuber said, adding that the global logistics market will show the first signs of an economic upswing. "Our business is an early indicator, but we have no order backlog, so I cannot say how things will develop," DHL, CEO Frank Appel told "Reuters." "Until April, we saw neither an improvement nor a deterioration, so it looks as though the floor of the crisis has been reached."
Lufthansa Cargo (LUB) will handle capacity on weekend routes to North America while DHL Express will use the airplane weekdays to Asia. The Joint Venture (JV) originally planned to order 11 777-200Fs but has scaled back its plans. All eight should arrive by 2011. Appel said (AGC) expects to be profitable next year.
July 2009: Lufthansa Systems said AeroLogic (AGC) will use the Lido eRoute Manual for its navigation charts. It also chose the Lido FMS navigation database service for the flight management system and will calculate crew rotations with NetLine/Crew. In addition, (AGC) will use NetLine/Sched for schedule management, NetLine/Ops for all operational control processes and Lido OC for flight planning via DHL Express.
777-FZN (36002, D-AALB), Deucalion Capital leased.
December 2009: AeroLogic (AGC) will add two more 777-200Fs this month, a Lufthansa Cargo (LUB) spokesperson confirmed. It already operates two of the 777F freighters. The additional planes will be used to boost frequencies on current routes to Asia from Leipzig/Halle. Load factor is around 75% to 80% LF. Two more 777-200Fs are expected in the spring and another two in the fall.
2 777-200FZNs (36003, D-AALC; 36004, D-AALD), Deucalion Capital leased.
January 2010: AeroLogic (AGC) will launch weekend service from Frankfurt to both Atlanta and Chicago O'Hare during the current winter schedule, as well as daily, Leipzig - Hong Kong service (nonstop four-times-weekly). It plans to take delivery of additional 777Fs in June, July, September and December. "Demand for Europe to Asia and Europe to the USA remains stable, despite the weakened world economy, and is expected to increase in the mid-term," (AGC) said.
April 2010: Jorg Eberhart, Managing Director.
June 2010: 777-FZN (36198, D-AALE), Deucalion Capital leased.
July 2010: AeroLogic (AGC) is a joint venture cargo carrier formed by Lufthansa Cargo (LUB) and (DHL) Express. It operates 777Fs from its base at Leipzig Halle (LEJ) on routes linking European and Asian destinations: Bangkok; Hong Kong; Seoul; & Singapore; from 2009. It plans to increase its 777F fleet to 11 airplanes by 2012.
(IATA) Code: 3S - 278. (ICAO) Code: BOX - (Callsign - GERMAN CARGO).
Parent organization/shareholders: (DHL) Express (50%); & Lufthansa Cargo (LUB) (50%).
Main Base: Leipzig/Halle Airport (LEJ).
September 2010: 777-FZN (36199, D-AALG), Deucalion leased.
October 2010: Aerologic (AGC) will launch thrice-weekly, Leipzig - Brussels - Bahrain service.
March 2011: Lufthansa Cargo (LUB) will launch service from Frankfurt (FRA) to Shenzen (thrice-weekly) and Calcutta (twice-weekly) March 27. Weekly 777-200LRF service from (FRA) to Houston and Lahore will be operated under its joint venture (JV) with AeroLogic (AGC).
March 2012: Lufthansa Cargo (LUB) Chairman & (CEO), Karl Ulrich Garnadt said that Russia’s opposition to the European Union’s Emission Trading Scheme (EU ETS) has delayed approval for traffic rights for several flight frequencies of (LUB) and AeroLogic (AGC) via Russia.
“Aerologic (AGC) didn’t get a single flight approval via Russia [for the coming summer schedule starting March 25]. We cannot accept this situation and force politics to react,” he said during the financial results conference.
Garnadt said that out of 30 planned weekly (LUB) flights via Russian Territory, only 11 have been approved. “We see that the (EU) is not changing its mind,” he said, adding that the (ETS) is further affecting the already distorted level playing field.
(LUB) and its sister carrier (AGC) have not yet received overflight rights from Russia for the (IATA) summer timetable 2012 period that has started on March 25. Both carriers have now introduced technical stops in Almaty (ALA) instead of Krasnoyarsk (KJA) for their flights to the Far East. While Russia's current move is thought to be related to its opposition to the European Union emission trading scheme (EU ETS) for airlines, Russia had interestingly enough previously forced (LUB) to move its technical stops to Krasnoyarsk (KJA) in 2009 by not granting it rights to fly over the country in 2007 and 2008.
Garnadt also criticized the night-flight ban at Frankfurt Airport (FRA), which took effect October 30, 2011, and said a court decision April 4 will determine if the night-flight ban remains. “This ban will cost (LUB) annually €40 million/$53 million in profit,” he said. “This is substantial. The amount in turnover we lose is a three-digit million euro number.”
Among the top 10 major airports, (FRA) is the only one with a night-flight ban.
July 2012: July 2012: (DHL) opened a $175 million hub at Shanghai Pudong airport (PVG) and said it would invest another $132 million over the next two years to enable it to dedicate eight additional freighter airplanes to (PVG) for flights to north Asia, Europe and the USA.
The new (PVG) express cargo facility spans 88,000 sq m and can process up to 20,000 documents and 20,000 parcels per hour. The German delivery giant already operates Asian hubs in Hong Kong, Bangkok and Singapore.
The planned new flights from (PVG), to be implemented by 2014, will be operated by Aerologic (AGC), DHL Air UK (DHK) and Atlas Air Worldwide Holdings (AAWH) subsidiary, Polar Air Cargo (PAO). “There will be a variety of other providers as well,” (DHL) said.
(DHL) currently operates cargo flights from (PVG) to Hong Kong, destinations in Japan, Leipzig and Cincinnati. Later this year it plans to start new flights from the airport to Seoul Incheon, Taipei, Dalian and Qingdao. “Beijing and Xiamen [are] likely to come on stream in 2013,” it said.
(MTU) Maintenance won a contract from German express cargo operator AeroLogic (AGC) to maintain its (GE90-100B) engines powering its 777F fleet, plus its owned spare engines.
August 2012: Lufthansa Cargo (LUB) will take delivery of the first of five (GE 90)-powered 777F freighters in the fall of 2013, followed by two in 2014 and two in 2015.
(LUB) will decide if it will convert the five options over the next several weeks. “To have [airplane] options gives us flexibility,” (LUB) Executive Board Member Operations, Karl-Rudolf Rupprecht said. It is unclear if (LUB) will use the 777Fs for fleet expansion or replacement of its 19 MD-11F airplanes.
(LUB) and its AeroLogic (AGC) joint venture [with DHL Express (DHK)] operate eight 777Fs. “The 777F saves -17% fuel compared to an MD-11F. If we operate 19 777Fs, the fleet needs the same amount of fuel for 11 months compared to 19 MD-11Fs in 12 months,” Rupprecht said.
The Lufthansa (DLH) Group uses 10 million tons of Jet A1 kerosene annually. (LUB) said it has reduced fuel burn by -4% since 2005, or -1.9 tons per flight.
(LUB) is targeting a -25% reduction in CO2 emissions by 2020 and a -50% reduction in net CO2 emissions by 2050.
September 2012: Aerologic (AGC) sees “no end in sight” to its ban from flying in Russian airspace on flights from Europe to Asian destinations due to Russia’s opposition to the European Union’s Emissions Trading Scheme (EU ETS). In March, Russian authorities began delaying approval for traffic rights for several flight frequencies of Lufthansa Cargo (LUB) and AeroLogic (AGC) via Russia due to the (EU ETS).
An (AGC) spokesperson said the ban affects several weekly flights from Europe to Hong Kong, Shanghai and Seoul, which now have to detour through Northern Asia, resulting in higher fuel costs, less maximum cargo loads, delays and a competitive disadvantage. “We are afraid that (AGC) has become a game ball [in] very difficult negotiations,” the spokesperson added. “All this is not easy to accept and to compensate.”
(LUB) has received approval for most of its 30 weekly flights via Russia.
December 2013: Lufthansa Cargo (LUB) added its second Boeing 777F to its fleet on November 27th. The airplane is expected to enter schedule service December 6 from Frankfurt to Chicago O’Hare. Two airplanes will follow in the first half of 2014 and a fifth in 2015.
February 2014: The Lufthansa Group will benefit from a new agreement between Russian and German authorities, which last week approved Russia’s AirBridgeCargo (ABC) to operate fifth freedom flights 3x-weekly from Frankfurt to the USA.
AeroLogic (AGC), a joint venture (JV) of Lufthansa Cargo (LUB) and (DHL) Express, will also benefit from the agreement.
Lufthansa Cargo (LUB) spokesperson, Matthias Eberle confirmed “Lufthansa Cargo (LUB) will add 14 weekly crossings over Siberian airspace. Its joint venture (JV), AeroLogic (AGC), will add +13 additional weekly frequencies,” which results in cutting flying time and saving fuel burn.
Lufthansa Cargo (LUB) will be able to operate up to 30 roundtrips between Europe and the Far East per week by the shortest possible route. Lufthansa (DLH) Passenger Airline can also benefit from 13 additional weekly frequencies for its Asian routes.
Lufthansa Cargo (LUB) executive board member Andreas Otto said the Russian side receives traffic rights for two weekly Frankfurt - USA flights and one charter flight.
AirBridgeCargo (ABC) can take advantage of these 3x-weekly transatlantic cargo flights on basis of fifth freedom rights from a number of German airports.
The agreement could be seen as a long-awaited compromise after a several years of traffic rights discussions. In 2007, Russian authorities suspended Lufthansa Cargo (LUB)’s right to fly over Russia.
Otto said that Lufthansa Cargo (LUB) is expecting a +5% tonnage growth in 2014 even though the air freight business remains challenging. “We see ourselves as well positioned,” Otto said.
February 2015: AeroLogic (AGC) has selected Swiss AviationSoftware’s (AMOS) (MRO) software and will use it to fulfill its airworthiness requirements as a Continuing Airworthiness Management Organization (CAMO).
January 2017: The (ASL) Aviation Group confirmed Ulf Weber will be Chief Executive Officer (CEO) of (ASL) Belgium (formerly (TNT) Airways (TNB)). Ulf will join from Aerologic (AGC) GmbH in Leipzig/Halle Airport, Germany, where he is currently Managing Director (MD) and Accountable Manager.
April 2017: Germany-based AeroLogic (AGC), a joint venture of Lufthansa Cargo (LUB) and DHL Express, has appointed Josef Moser as (COO) & Accountable Manager at (AGC) from May 1. Moser is former Head of Flight operations & Crew Training.
At the same time, Wolfgang Raebiger, previously Captain and Head of Fleet at Lufthansa Cargo (LUB), will take over as new (CFO) in the senior management at AeroLogic (AGC).
AeroLogic (AGC)'s previous Managing Director Ulf Weber will be leaving (AGC) at his own request April 30 to pursue a new challenge.
Markus Niedermeyer, who was also part of the management as authorized officer, will remain his role as Head of Administration for several months in order to ensure a smooth transition, before taking over a new management position at Lufthansa Cargo (LUB).
AeroLogic (AGC) operates a fleet of 8 Boeing 777Fs.
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6 ORDERS 747-400F, EX-(AFA), DEUCALION AVIATION LSD. CONV TO F BY (IAI)/BEDEK. FREIGHTER.
3 777-200FZN (GE90-110B1) (780-36001, /09 D-AALA, 2009-05; 799-36002, /09 D-AALB, 2009-07), DEUCALION CAPITAL VII LSD. FREIGHTER.
8 777-200FZN (GE90-110B1) (836-36003, /09 D-AALC; 838-36004, /09 D-AALD; 36198, D-AALE 2010-06; 36199, D-AALG 2010-10; 36200, D-AALH 2012-04; 36201, D-AALF 2012-01), DEUCALION AVIATION LSD. FREIGHTER.
JORG EBERHART, MANAGING DIRECTOR (2010-04).
THOMAS PAPKE, JOINT MANAGING DIRECTOR, EX-(LUB).
Dr Thomas Papke, Managing Director of AeroLogic said: “We have created a strong and experienced management team to help us face the challenges of running an air cargo carrier and achieve our goal of ranking among the top five cargo carriers in Europe. We can only achieve this goal if we have outstanding individuals and I believe the team is ideally placed to offer AeroLogic (AGC) both specialist expertise and creativity.”
THOMAS PUSCH, JOINT MANAGING DIRECTOR, EX-DHL/(DHK).
“Today marks the start of another important phase before the launch of the first AeroLogic (AGC) freighter,” commented Managing Director Thomas Pusch, whose remit also includes Human Resources. “We are encouraging pilots to apply to join this exciting new venture, via our website: http://www.aerologic.aero. We are looking for around 200 pilots (FC) and we can offer them an extremely attractive working environment with competitive conditions and the opportunity to fly a route network which, in addition to the major Asian cities, includes exciting destinations across North America. We also operate the world’s most technologically advanced freighter airplanes,” Pusch added.
ULF WEBER, JOINT MANAGING DIRECTOR, RESIGNED (2017-04).
Ulf will leaves April 30 at his own request to pursue a new challenge.
JOSEF MOSER, CHIEF OPERATIONS OFFICER (COO) & ACCOUNTABLE MANAGER (2017-05).
Josef was the former Head of Flight Operations & Crew Training.
WOLFGANG RAEBIGER, CHIEF FINANCIAL OFFICER (2017-05).
Wolfgang was previously Captain & Head of Fleet at Lufthansa Cargo (LUB).
CHRISTIAN SCHMUCKER, DIRECTOR MAINTENANCE.
BORIS HUESKE, DIRECTOR FINANCE.
WOLFGANG JOHN, DIRECTOR HUMAN RESOURCES (HR).