DEUTSCHE POST, LUFTHANSA LAUNCH JOINT VENTURES
Deutsche Post World Net and Lufthansa Cargo have launched two joint ventures to consolidate their mutual interests in express operator DHL International and in electronic commerce logistics.
Deutsche Post and Lufthansa are transferring the exercise of their shareholder rights in DHL to a new company, Aerologic, which will be managed by Deutsche Post. Together, Deutsche Post and Lufthansa own 50 percent of DHL International, the non-U.S. operating arm of global express carrier DHL Worldwide Express. DHL is planning to launch an initial public offering of stock in Europe next year.
Deutsche Post and Lufthansa also will form a company called e-logic to jointly grow their logistics business associated with e-commerce. E-logic will focus on providing logistics services to business-to-business e-commerce concerns. The new company also will “decide on and hold investments in this area,” Lufthansa said.
' Deutsche Post and Lufthansa said their new alliance is a logical progression of an existing customer-provider relationship. Deutsche Post — which owns the German post office and the world’s largest air forwarding operation in Danzas-AEI, is Lufthansa Cargo’s largest customer.
Observers said the deal marks the start of a broad consolidation of Lufthansa and Deutsche Post interests, including cooperation between Deutsche Post and Lufthansa’s airline cargo partners, Scandinavian Airlines System and Singapore Airlines. Lufthansa, SAS and SIA expect to announce plans to form a cargo alliance this year, with the possible inclusion of other Star Alliance carriers at a later date.
Analysts believe Lufthansa and its partners will eventually form a global, dedicated cargo carrier network for Deutsche Post, Danzas-AEI and DHL International, which operates aircraft in Europe but mostly uses commercial lift to move packages around the world.
Because of its timing, the announcement also led some to believe that the European Commission will issue a ruling this month clearing Deutsche Post and the German government of any cross-subsidization allegations related to an investigation the EC launched at the behest of United Parcel Service.
“With this strategic alliance between Lufthansa Cargo and Deutsche Post the idea is to strengthen even further the position of DHL International as the world market leader in the international express delivery business,” said Klaus Zumwinkel, Deutsche Post chairman.
“With more and more horizontal and vertical logistics alliances and companies forming, we want to establish a milestone that has wide-reaching significance for the expansion of logistics, one of the strategic business areas within the Lufthansa Group,” said Stefan Lauer, chairman of Lufthansa