By Karen E. Thuermer, AJOTCompetition among airfreight carriers just got stiffer with the introduction of AeroLogic, a 50/50 joint venture airline between Deutsche Lufthansa AG, Europe’s second-largest airline, and Deutsche Post AG, the region’s biggest mail service. Dubbed AeroLogic, Its yellow and gray logo, aircraft type, and service network were unveiled during a much-anticipated launch held at Frankfurt International Airport, January 28. Some 80 journalists attended the event during which time key executives from Lufthansa Cargo and Deutsche Post’s DHL Express introduced the new carrier and top staff appointed so far to run the operation. The name of the new carrier comes from the eight-year-old company owned jointly by Lufthansa and Deutsche Post’s DHL Express division that already assigns cargo to space on Lufthansa’s and DHL’s cargo and express network. “This will be the world’s latest cargo airlines formed in recent history,” stated Charles Graham, CEO Global Aviation, DHL Express. AeroLogic will start operations in April 2009 and be based in Leipzig/Schkeuditz at Leipzip/Halle Airport (LEJ). Start up costs for the new entity are estimated around 15 million Euros or $22 million. AeroLogic is expected to generate annual revenues of 550 million euros starting in 2011. LONG RANGE AIRCRAFT ARE KEYThe cornerstone to its operation will be its eventual fleet of 11 Boeing 777-200 long range freighters, the first four of which are scheduled for delivery in 2009, four in 2010, two in 2011, and one for reserve in 2012. “Our first priority was to secure the type of aircraft required for a market needed overnight service. By increasing the scope of city pairs, whether it be in Europe or North America or vice versa, we will be able to provide next morning delivery,” said Grahma. The aircraft will offer AeroLogic’s partners—Lufthansa Cargo and DHL Express—unabated buying strength, said key executives from both airlines. “We will be the first freighter airline to operate these aircraft,” said Carsten Spohr, CEO and Chairman of Lufthansa Cargo AG. “They will enable us to gradually build up AeroLogic’s route network.” Key to the deal was the leasing agreement with Deucalion Capital VII Limited, a company advised and managed by Germany’s DVB Bank AG. AeroLogic will lease the first eight from Deucalion. DHL’s Graham hails the successful completion of the leasing agreement for the first eight Boeing 777-200LRFs as an important milestone for the new carrier. That’s because only by marrying the resources of both Lufthansa and DHL Express are the companies able to lease these aircraft and make Aerologic a viable carrier. “Delivering unbeatable service requires the best equipment available in the market,” stated Graham. “When we selected the aircraft type for this new airline, we used three major considerations: service, cost, and environmental friendliness.” Those in the industry believe the new carrier could rival United Parcel Service (UPS) and FedEx Corp. since the aircraft will give AeroLogic the ability to service more destinations non-stop more frequently than Lufthansa Cargo or DHL Express can do on their own. The Boeing 777-200LR is well suited for long haul transport for different categories of goods. “It measures 9,000 meters at full payload and allows us to offer direct flights to any destinations that today can only be reached by stop overs or re-routings,” Graham said. “For DHL Express this means we will enjoy specific route transit improvements.” On its Europe to Asia trade lane, for example, DHL’s capability for second day/before noon delivery service will increase to 80% from origin to destination. “That’s a significant sales improvement for our customers,” he added. The 777-200LR is designed to facilitate a revenue payload capability of more than 226,000 pounds (103 metric tons) and fly 4,885 nautical miles (9,045 kilometers), thereby making it the world’s longest-range freighter. With the lowest trip cost of any large