Freighter operations may not be profitable in emerging markets and belly-hold can undermine the business case further, Lufthansa Cargo chief executive officer (CEO) Peter Gerber tells Air Cargo Week, but new markets are important for the carrier.
Speaking in Toyko, Gerber explains that emerging markets are tough with Latin America being a challenge and plenty of competition in Africa, Egypt and South Africa. Gerber says: “We see growing economies, sometimes it is trial and error, if it is not profitable, you have to step out.”
A former chief financial officer of the cargo division, Gerber became CEO in May last year, inheriting the carrier’s 2020 programme, the goals for which include a new IT system, higher cargo handling productivity, and cooperation with airlines. “The biggest challenge faced is bringing our Lufthansa Cargo 2020 programme to reality,” Gerber adds.
He was speaking in Tokyo to highlight his carrier’s relationship with All Nippon Airways (ANA). Freight is already being transported from Japan to Europe under this agreement. “All the teams are over performing. There have been 250 additional shipments since the beginning of December,” he comments.