46 American Journal of Transportation American Journal of Transportation ajot.com Lufthansa Cargo signs agreement on acquisition of LUG aircargo handling (L to R) Torsten Heitmeier – COO Dettmer Group, Frank Bauer – COO Lufthansa Cargo, Andreas Niemeyer – CEO Dettmer Group, Ashwin Bhat – CEO Lufthansa Cargo Lufthansa Cargo is setting the course for sustainable growth in the coming decades and positioning the company for a successful future. To this end Lufthansa Cargo signed an agreement last Monday, 7 Septem- ber 2026, to acquire 100% of LUG aircargo handling GmbH. The trans- action is one of the key pillars of Lufthansa Cargo’s growth strategy and is intended to create the infra- structural foundation for future profit- able growth and further strengthen the company’s competitiveness. With the planned acquisition, Lufthansa Cargo will gain immediately available, additional handling capacity within Germany. With that, the company’s existing ground handling infrastruc- ture, which is currently undergoing a fundamental modernization as part of the LCCevo program with a total investment of around 600 million Euros, will be complemented. This will enable the company to support future growth while continuing to provide high-quality and reliable services to its customers. The trans- action will not result in any changes for the customers of either company, as LUG aircargo handling GmbH will continue to operate independently in the market following its acquisition by Lufthansa Cargo, preserving its established structures and customer relationships. The completion of the transaction is subject to the necessary antitrust and regulatory approvals. “In an increasingly volatile market environment, we want to become more flexible, more efficient, and more resil- ient for our customers. That is why we are making targeted investments in our infrastructure in our home market in Germany to set the course to provide an even better offering for our cus- tomers and achieve profitable growth — this is a win-win situation for both companies. We will continue to stand for ‘Enabling Global Business’ for Germany as an export nation and across our entire global network,” says Frank Bauer, Chief Operating Officer of Lufthansa Cargo. LUG aircargo handling GmbH, which currently belongs to the Dett- mer Group, is an established air cargo handler with many years of experi- ence in handling a wide variety of cargo segments and approximately 400 employees. The company has approximately 50,000 m² of covered warehouse space in Germany, as well as an additional 18,000 m² of office and infrastructure space. LUG air- cargo handling GmbH brings over 60 years of experience in air cargo handling to the table and counts major international airlines among its customers. The seller, the Dettmer Group, welcomes the planned trans- action and believes the company is well-positioned for further growth under Lufthansa Cargo’s ownership. Gulfstream Builds on Rapid Growth at St. Louis Downtown Airport Ray described Gulfstream’s con- tinued growth at St. Louis Downtown Airport, where the company had an established an MRO operation before adding aircraft-completions and out- fitting capabilities. Its completions work includes interior installations, paint, avionics, cabinetry, carpeting and flight testing. The expanded operation repre- sented an investment of more than $30 million and added over 200 new jobs, according to Ray. Gulfstream delivered its first locally completed aircraft in 2023 and Ray said they expect another successful delivery year in 2026. Gulfstream continues to invest in advanced manufacturing, flight- deck and cabin technologies, as well as the services required to support aircraft after they enter service. Ray also highlighted the company’s work involving sustainable aviation fuel (SAF) and testing intended to reduce contrail-forming emissions. He described St. Louis as an import- ant part of Gulfstream’s global business, serving customers from North Amer- ica, Asia, Europe, and the Middle East, among other markets. “It’s a booming aviation hub, with a very skilled workforce, and we’re continuing to partner with and invest in this community,” Ray said. West Star Aviation Invests in Facilities, Technology and Talent Bauwens discussed West Star Avi- ation’s growing MRO presence at St. Louis Regional Airport in East Alton, Ill., where the company operates more than 600,000 square feet of facilities and now employs just over 700 people. West Star also operates a hangar at St. Louis Downtown Airport. The company has expanded its infrastructure, added hangar capac- ity and invested in new scheduling and planning capabilities to manage the large number of aircraft moving through its operations. Bauwens said they currently have 117 aircraft on site and expect to deliver 40 – 43 of them by the end of August. “For us, that’s huge innovation,” Bauwens said of the company’s new scheduling and planning systems. He added that they also are look- ing at acquisitions as the company works to expand its engineering and repair capabilities to complete spe- cialized modifications and keep more work in-house. West Star is also pursuing addi- tional foreign aviation authority cer- tifications that would enable more internationally registered aircraft to receive service in the region. Bauwens said the effort can attract customers from outside the United States and gen- erate additional business for regional suppliers and service providers. “We’re trying to bring more money into the region,” Bauwens said. “We currently have 11 outside or foreign authority certifications where we can work on those airplanes from outside of our states or outside the U.S.” Workforce Development Emerges as a Shared Priority Despite representing different seg- ments of the aerospace industry, all three panelists identified workforce availability as one of the most import- ant factors influencing future growth. Boeing recently marked the first anniversary of a mechanic apprentice- ship program that combines classroom education with hands-on instruction using Boeing plans, drawings, and pro- duction tools. Nicklaus said 230 gradu- ates had moved into regular production positions. Boeing’s longstanding part- nership with St. Louis Community College has also produced a pathway for hiring approximately 1,300 produc- tion employees since 2007. “Capturing skilled and capable people is so important to everything we all do,” Nicklaus said. “It’s really been a great pathway into the Boeing company and then onto better things, not only for Boeing, but for individuals’ careers.” Gulfstream is working with schools, community colleges, universities, mili- tary programs and career and technical education partners to expose students and transitioning service members to aviation careers. Its partnerships include the Belleville, Ill.-based Center for Academic and Vocational Excellence, commonly known as the CAVE, and programs with Southwestern Illinois College, Lewis and Clark Community College and area school districts. “This is an exciting time,” Ray said. “The types of careers and jobs available within our industry can be life-changing.” West Star Aviation has developed the West Star Aviation Academy in partnership with Southwestern Illinois College. Bauwens said the program recently graduated its fourth class and has achieved an approximately 85% retention rate among its participants. Graduates enter the workforce with aviation credentials and opportunities to pursue additional certification and career advancement. “The growing need for individu- als in this is just so massive,” Bauwens said. “Come visit the sites, because that’s how we get people interested in this business.” Collaboration Strengthens the Regional Aerospace Ecosystem The panelists emphasized that workforce development and regional growth depend upon collaboration among aerospace employers, schools, colleges, universities, military instal- lations, airports, governments, and economic development organizations. While Boeing, Gulfstream and West Star Aviation serve different portions of the aerospace market, the companies share a need for skilled employees and benefit when aero- space professionals can build careers across multiple employers without leaving the region. The session concluded with a shared message that collaboration, continued investment, and stronger awareness of aviation careers will be essential to supporting the region’s aerospace momentum. (GATHER – continued from page 44) Air China Cargo partners with cargo.one to debut e-booking Air China Cargo, the nation- al-flag cargo carrier of China and dedicated air freight subsidiary of Air China, unveiled a partnership that now brings its air freight capac- ity to cargo.one. Air China Cargo’s first global digital distribution part- nership places its capacity within the AI-powered workflows of thousands of freight forwarders using cargo.one. The launch reflects cargo.one’s role as the preferred partner for air and ocean carriers to scale and future-proof their sales worldwide. Air China Cargo operates a fleet of 24 dedicated freighters alongside sig- nificant belly capacity on Air China’s worldwide passenger services. Its global network includes 30 all-cargo routes to 14 countries throughout Asia-Pacific, Europe, the Americas and the Middle East, and is supported by over 1,500 overland trucking routes. Air China Cargo is a trusted carrier option for global forwarders, e-commerce plat- forms and shippers in industries ranging from high-tech and pharmaceuticals to automotive and perishables. Air China Cargo has now acceler- ated its digital sales strategy by secur- ing cargo.one’s global scale, dynamic market agility, and digital best prac- tices. For Air China Cargo customers, cargo.one now offers the most user- friendly and AI-native quoting and booking method, enabling forwarders to quote and win shipments faster and deploy their teams more productively. The combination of cargo.one’s vast multimodal rate selection and its innovative AI workers helps forward- ers to quote faster and more accu- rately, optimize their win rates and scale their operations more efficiently. As cargo.one powers thousands of forwarders worldwide, carriers like Air China Cargo benefit from their offers always being present within relevant quoting flows. From today, forwarders using cargo.one in Europe and North Amer- ica can quote, book and track general cargo, including Express service, up to 5000 kg on Air China Cargo services to destinations including Shanghai Pudong, Beijing, Guangzhou, Shen- zhen, Chengdu, Chongqing and Hang- zhou. Additional markets and capacity products will become available on cargo.one in the months that follow.
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