Jade Cargo International, a Lufthansa Cargo (LHC)/Shenzhen Airlines (ZH) joint venture that temporarily suspended operations earlier this month, has signed a letter of intent with China’s UniTop Group to restructure the troubled carrier.
UniTop is a Chinese logistics enterprise founded in 1998 with a registered capital of CNY31 million ($4.9 million). It is expected the restructuring process will take two months to complete. In the meantime, the carrier is preparing to resume operations with its fleet of six Boeing 747-400Fs.
“With this step, the restructuring of Jade Cargo has taken a move forward, benefiting all stakeholders,” the carrier said in a statement. Jade Cargo, founded in October 2004, has faced continuous financial difficulties.
Industry analysts said it will not be easy for UniTop to help Jade Cargo make a turnaround as the cargo market is still in a depression. China’s big three airlines have all suffered operating losses on the cargo side last year; this year’s predictions are not optimistic as cargo traffic continued to drop 28.7% in January compared to the same period last year.
Grandstar Cargo International Airlines, the joint venture launched by Sinotrans Air Transportation Development Co. and Korean Air in 2007 , has also suspended operations Jan. 1 and could face liquidation if it can’t find a proper suitor.
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