Lufthansa, SIA plan tie-up

Lufthansa, SIA plan tie-up

SINGAPORE (AFP): The cargo subsidiary of German airline Deutsche Lufthansa AG is exploring a joint venture in freight operations with Singapore Airlines Ltd. (SIA), the Straits Times reported Saturday.

The move is part of Lufthansa Cargo AG's bid to expand its freight business in Asia, where cargo capacity is expected to grow by between 6 percent and 7 percent this year and next, the report said.

"We are still weak in Asia-Pacific, so we need partners," Wilhelm Althen, chairman of the German carrier, was quoted as saying during a visit here Friday.

He said the common strategy of Lufthansa and SIA of operating passenger and cargo businesses separately made the Singapore airline a suitable partner.

Althen said a joint venture with SIA could come as early as next year "given that the market is working so quickly."

Lufthansa and SIA have already announced plans to form an air cargo alliance with Scandinavian Airlines System.