June 7 - The international aviation media, in both China and Europe, is reporting a possible permanent grounding of Jade Cargo International, six months after operations of the Lufthansa Cargo and Shenzhen Airlines joint-venture were suspended.
The operation is reported to have debts of USD707 million, around USD170 million higher than the carrier's assets of USD534 million.
Commercial analysts are debating what impact the release of the line's six 747ERFs back onto the market will have, given the depressed nature of much of European consumer demand for goods from China.
Retailers are now reluctant to restock by air freight, preferring the cheaper air/sea and ocean services. The airline's restructuring costs are said to be at the core of the liquidity issues.
The line, which only commenced operations in April 2011, seven years after the airline was launched, employed six 747ERFs. HLPFI understands that the three leased aircraft will be returned to the two lessors. The future of the other three aircraft is undecided.
