The dismal aircargo business in 2001 tested the resolve of the industry to focus on improving logistics efficiencies, says the head of one of the world's leading international aircargo carriers.

Speaking at a press conference in Washington, D.C., Jean-Peter Jansen, chairman of the executive board of Frankfort, Germany-based Lufthansa Cargo AG, said that despite a 7-percent drop in revenues, his company was one of the few aircargo carriers that posted positive operating results last year. Lufthansa Cargo reported a $2.5 million profit in the first quarter, and Jansen predicted that the full year's results for 2002 would be better than they were for 2001.

Jansen said he expected a combination of new services, strategic alliances and information technology investments would fuel his company's growth. New services will be geared toward specific consumer needs, he said, citing the example of Safe/td 2, a time-definite service designed for high-value freight that requires special security measures.

Another aspect of Lufthansa Cargo's plan is the strengthening of affiliations with other air carriers through alliances. One such alliance, named "WOW," is a partnership between Lufthansa Cargo, SAS Cargo and Singapore Airlines Cargo. That arrangement began operating last fall. "These alliances are built upon product standardization and will change how our business functions," Jansen explained. "International carriers today cannot provide competitive service without an alliance."

Lufthansa Cargo will soon make another announcement regarding partnerships, Jansen added, though he would not elaborate. Although he acknowledged that finding a partner could be tricky, he emphasized the importance of strategic alliances during a worldwide air carrier shakeout. Currently, Lufthansa is having discussions with DHL about combining networks, Jensen said, noting that such discussions were not easy because airlines found it hard to accept outside leaders.

A third goal for Lufthansa Cargo, Jansen said, was to maintain an edge in information technology in order to ensure both cargo security and supply chain efficiency. "In house, we must have the connectivity to [other companies'] legacy systems and create a connection between the forwarder or airline and the market," he observed. "Today the marketplace is all about communication between their personnel and ours."