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.