Lufthansa Cargo Charter Agency Record 2005

     Lufthansa Cargo Charter Agency (LCCA) achieved its best-ever financial performance in 2005.
     Exact figures will be published in March in the consolidated results of the parent company, Lufthansa Cargo, which has a 100 percent stake in LCCA.
     However, LCCA Managing Director Christian Fink told FlyingTypers:
     “With sales well over the 56 million-Euro-mark we achieved in 2004, we have realized a very respectable profit.”
     Fink cites several reasons for this positive development.
     Since Lufthansa Cargo now only accounts for about 25 percent of the flights operated by the charter subsidiary, LCCA generates the bulk of its business with third party customers.
     “That is why we have achieved significantly higher margins,” he explains, adding that there was a considerable increase in the number of charter flights operated during the high season – from 30 in 2004 to almost 100 in 2005.
     This was mainly due to the transport of video consoles from Hong Kong to the U.S. and Germany on behalf of a key account.
     The cargo transports to Germany were sold as round trips, which also lifted earnings.
     Furthermore, LCCA scored points in the transport of bulky and extra-heavy goods, as evidenced by the more than ten flights operated with the large Antonov AN-124 freighter aircraft.
     “That also helped us to position ourselves well in this segment,” Fink adds.
     During the current year, the cargo manager expects to see the launch of regional charter flights within Asia and America in addition to the airline’s global business.
     These flights will include cargo flights between China and India, as well as between the U.S. and Latin America.
     “Thanks to our competence centers in Chicago and Hong Kong, we are represented in these markets.
     “That is very important because direct, personal contacts are still the main door opener to the charter business.”
     Fink describes his company’s brand name as “an issue we are still working on”.
     The brand is still not recognized widely enough in the U.S., the UK or East Asia.
     Potential synergy effects between the parent LH Cargo and its charter subsidiary with regard to daily cooperation and customer acquisition could also be further optimized.
Heiner Siegmund