newstodate.aero
Aug 31, 2009 (newstodate): In a truly surprising move reflecting the dire straits in today's air cargo business, Lufthansa Cargo has informed the market of its intentions to raise rates by 25 percent over the coming weeks.
The information is contained in a letter by Andreas Otto, Lufthansa Cargo executive board member.
The rates hike is supposed to represent an average, and no details are currently available to specify if it is to be distributed on all product segments or if it is to be differentiated in specific markets.
Even so, the letter says the rates increase will only partially compensate for the dramatic decline in rates in the last few months, and the company also prepares to ground more MD-11F aircraft, bringing the total of gounded aircraft to four.
-If current market trends continue, we expect that, in the medium term, the majority of the world's freighter fleet will have to be permanently grounded because there will simply be no economic justification for keeping these aircraft ion service, the letter says.
The information is contained in a letter by Andreas Otto, Lufthansa Cargo executive board member.
The rates hike is supposed to represent an average, and no details are currently available to specify if it is to be distributed on all product segments or if it is to be differentiated in specific markets.
Even so, the letter says the rates increase will only partially compensate for the dramatic decline in rates in the last few months, and the company also prepares to ground more MD-11F aircraft, bringing the total of gounded aircraft to four.
-If current market trends continue, we expect that, in the medium term, the majority of the world's freighter fleet will have to be permanently grounded because there will simply be no economic justification for keeping these aircraft ion service, the letter says.