MD Ulrich Ogiermann confirms airline is ‘in the final stages of the AOC approval process and we expect a further update imminently’, despite questions over CLG’s status as an EU airline.
Germany’s newest all-cargo carrier, CargoLogic Germany (CLG), is preparing for take-off, with reports that it is close to gaining an air operator certificate (AOC) from Berlin, despite opposition from home carrier Lufthansa Cargo and questions about CLG’s status as a genuinely European Union-controlled airline.
German and UK trade publications report that Germany’s Federal Ministry of Transport (LBA) is poised to issue the AOC to the carrier, “subject to conditions”, after a year-long application process, after which it will need a flight permit from the European Aviation Safety Authority (EASA).
Ulrich Ogiermann, managing director of the airline, yesterday told Lloyd’s Loading List: “We can confirm that we are in the final stages of the AOC approval process here in Germany and we await further news from the issuing authority – we expect a further update imminently.”
The airline has reportedly been conducting twice-weekly test flights, allowed under a non-commercial LBA permit.
“Our operations have been fully vetted and approved by the German civil aviation authority and CLG has garnered significant commercial interest over the past months,” Ogiermann told Lloyd’s Loading List. “We are ready to serve our customers and eagerly await further news from the LBA.”
CLG, with two Boeing 737-400SFs already in place, will be based at Germany’s Leipzig-Halle airport, an established overnight freighter hub, and so has a strategic launchpad to serve the growing e-commerce market in Europe.
Lufthansa Cargo’s senior management has previously suggested that establishing the ultimate ownership of CLG – to identify whether it is genuinely a European Union entity – may be an issue in the granting of an AOC by the regulator. But a spokesperson for the cargo arm of the Germany flag carrier this week told Lloyd’s Loading List that it was “currently not commenting on these media reports”.
Nevertheless, earlier this year, Lufthansa Cargo chairman and CEO Peter Gerber, questioned the legitimacy of CargoLogic Germany’s application for a German AOC, “because you need to be European and it needs to be European controlled. If it really is an AirBridgeCargo subsidiary, that in itself contradicts the laws – because it’s controlled by ABC, and they can’t get a European Union AOC.”
There remains some confusion about the relationship between AirBridgeCargo, a subsidiary of Russian-owned Volga-Dnepr Group, and CargoLogic Germany, UK-based CargoLogicAir, and the holding company for the latter two airlines: CargoLogicHolding. For example, ABC’s parent company, Volga-Dnepr Group, along with CargoLogicHolding – both owned by Alexey Isaykin, president of Volga-Dnepr Group (VDG) and chairman of CargoLogicHolding – in July signed a package of agreements with aircraft manufacturer Boeing, including a letter of intent to acquire 29 Boeing 777 freighters and confirmation of an order for five Boeing 747-8 freighters. The package of agreements also included a commitment for both companies to explore other freighter solutions, such as new production 767 freighters or converted cargo jets such as the 737-800 Boeing Converted Freighter.
Despite the fact that CargoLogic Germany and CargoLogicAir are subsidiaries of CargoLogic Holdings, which has the same shareholders as ABC’s parent company Volga-Dnepr Group, uses the same branding and livery common to both ABC and CargoLogicAir, there appears to be an attempt to play down the connections between CargoLogic Germany and Volga-Dnepr Group. Earlier this year, ABC’s general director Sergey Lazarev denied that ABC and CargoLogic Germany are affiliated, responding: “CargoLogic Germany is an independent European carrier specializing in express transportation of various types of cargoes, with special focus on leveraging e-commerce volumes. It is not affiliated to AirBridgeCargo or to Volga-Dnepr Group.”
Clarifying what he meant by “not affiliated”, Lazerev added: “It is part of CargoLogicHolding together with CargoLogicAir. CLG is an independent carrier (which is waiting for its AOC) and has a separate executive management structure and team, and by no means is impacted by ABC or VD. Cooperation with the companies of Volga-Dnepr Group is happening strictly under existing contractual agreements.”
CLG states on its website that it will “support customers in Europe with their logistics requirements”. It will offer ACMI (Aircraft, Crew, Maintenance, Insurance) services to other carriers with the B737 freighters, ideal aircraft for express overnight operations, wet leased on a short-term basis to customers.
CLG will also offer worldwide charter services on the B737Fs, each with up to 20 tonnes of payload and a range of 2,800km.
The expectation is that CLG will principally service the needs of e-commerce and air express customers from Leipzig, with Leipzig emerging as a popular base for e-commerce customers wishing to service Berlin and its surrounds – as well as being the main European air hub for DHL Express.
Freight volumes at Leipzig/Halle Airport increased for the 14th year in succession in 2018 to more than 1.2 million tonnes, growth of 7.3% on the previous year, making it Germany’s second-largest cargo airport, behind Frankfurt Main, and the number 5 in Europe. Various sources report that DHL’s airline European Air Transport (EAT) is already flying several flights each day for Amazon with its B757 freighters, connecting Leipzig with East Midlands, Paris and Madrid, with the aircraft returning to duty on behalf of DHL Express for overnight intra-European operations
Source: Lloyd’s
