Lufthansa looks to Asia

Asia is centrally located on global trade routes, connecting major economies of the West with emerging markets in the East. Many Asian countries are among the fastest-growing economies in the world, so there is a great growth potential in all aspects, which also drives the airfreight industry in this region.

Additionally, with rising incomes and a continually growing e-commerce business, there is an increasing demand for consumer goods, many of which are transported by air to meet market expectations for fast delivery. Therefore, the speed of transporting goods worldwide gains additional importance.

“The Asia-Europe trade lanes remain very important lanes for Lufthansa Cargo. Due to steady demand, we are always evaluating its network and capacity. The carrier’s global B777F network did comprise 82 weekly connections to the world at the start of the summer flight schedule (31 March 2024) – including 42 direct connections from Europe to Asia,” Ashwin Bhat, CEO of Lufthansa Cargo, announced.

“Furthermore, the Boeing 777 freighter fleet will comprise a total of 18 aircraft with the addition of a new freighter in service during the course of this year. Including the belly capacities of Lufthansa, Austrian Airlines, Brussels Airlines, Discover Airlines and SunExpress, the cargo expert can offer its customers a worldwide network with up to 7,000 flights per week.

“The Asia Pacific region is a huge traffic area that is interesting for us. Therefore, we are prepared to adjust our network even on short notice. Furthermore, we continually evaluate and develop our network in the long term to serve our customers in the future with reliable supply chains.

“For example, in addition to China´s role, we observe a growing development of Southeast Asian countries like India, Vietnam, Indonesia or Malaysia.” 

History in the region

Lufthansa Cargo has been present in the Asia Pacific region for decades and has been able to build trust and strong partnerships with customers there. Thanks to its network, Lufthansa Cargo is able to serve this growing market, especially the e-commerce business.

“We have been working closely with all major logistics providers, partners such as our subsidiaries Heyworld and CB Customs Broker to drive forward the expansion of the e-commerce business worldwide,” Bhat added.

Lufthansa Cargo sees an important lever in digital solutions that enable efficient and fast processes for both markets. Together with our partners Heyworld and CB Customs Broker, the carrier offers digital customs solutions and will continue to invest in the future. This goes hand in hand with the expansion of its route network and with four A321F freighter, the carrier can now offer faster connections and new destinations with priority handling within Europe.

Bhat pointed to Shanghai Pudong International Airport Cargo Terminal Co Ltd.(PACTL) as an example: “The company was founded as a joint venture between Shanghai Airport, the Chinese logistics service provider JHJ and Lufthansa Cargo. Lufthansa Cargo holds 29 percent of the shares. Today, PACTL operates three terminals at PVG Airport and two at Hongqiao Airport. In addition, PACTL holds a 49 percent stake in the cargo terminal at Nantong Airport.

 “Moreover, Lufthansa Cargo cooperates with Cathay Pacific Cargo on network planning and sales, booking, IT and handling of their routes between Hong Kong and Europe to offer customers more direct connections, more flexibility and time savings.”

Riding the wave

The airfreight business remains a volatile business with challenges such as dynamic market development, geopolitical events, unforeseen crises, or new political regulations. Additionally, sustainability, digitisation and talent acquisition will remain important topics.

Lufthansa Cargo works to tackle this range of topics, aiming at resilient and flexible supply chains for customers by continually evaluating and developing its network in the long term. Additionally, sustainability remains an important topic.

“The Lufthansa Group and Lufthansa Cargo have invested heavily, for example, in a modern fleet, the ongoing modernisation of our Lufthansa Cargo Center in Frankfurt and in improving processes for customers and employees through digitalisation,” Bhat stated.

“We extended our cooperation with various partners using Sustainable Aviation Fuel (SAF) on our flights, jointly pushing the research and availability on SAF in our industry. Finally, our strong network allows us to adapt our capacity to meet our customers’ needs and add new stations in different markets and destinations when necessary.”