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4 January 2012 | Adam Leach
Air freight carrier Jade Cargo has suspended all flights due to a continued fall in demand for air freight transportation.
A statement released by the company on 31 December confirmed the decision to temporarily ground all of its planes as a result of “overall weak air cargo demand”. The freight carrier, which is a joint venture between Shenzhen Airlines and Lufthansa Cargo, started operating out of China’s Shenzhen Airport in 2006, transporting supplies across the country and the rest of the world.
“The temporary suspension of Jade Cargo services is due to overall weak air cargo demand,” said a statement. “It will also provide the shareholders with an opportunity to co-ordinate with stakeholders to continue with the restructuring of the company’s financial structure.” The company currently operates a fleet of six 747 cargo freighters.
The announcement came just a day after the International Air Transport Association (IATA) reported its global traffic report for November. The report found demand in Asia-Pacific had declined by 6.4 per cent year-on-year.
Tony Tyler, director general and CEO at IATA, said: “Weak global economic performance is being reflected in air transport markets. Freight markets have contracted some 4 per cent compared to January. Continuing economic uncertainty will likely mean market shortcomings deepening.”
Andrew Herdman, director general of the Association of Asia Pacific Airlines, said the decline was a result of “cautious management of supply chain inventory levels given the prospect of weaker consumer demand in the major developed economies”.