AeroLogic as a joint venture... but why?

[gnomegemini]

Hi there,

 

as some of you know AeroLogic is a 50:50 joint venture of Lufthansa Cargo and DHL. Now my question is: why?

 

Both of them are cargo only operators. If they would only "share" some cargo can't they use their current fleet? Also LH Cargo or DHL could order B777F for themselve? So why have they initiated this joint venture? Both are german operators.

 

I have 3 ideas:

1. EDDP is situated within eastern germany (former german democratic republic) which has lower wages even today. So this could be a point like germanwings does it: low priced flights with an high degree of capacity utilisation by keeping costs (i.e. for personal) pretty low.

2. They want a fast company without having a high bureaucracy (which costs money).

3. They want to see if there is a possible profit. I.e. they invest money and see what comes out and there's no conflict because both companies share earnings 50:50. When they would buy and sell capacity to the other big operator one of the two would earn more money.

 

 

So what do you think? What are the advantages of a joint venture like this? I could see the point easier if 2 other companies not related to cargo flights at all would create such a joint venture.

[voske]

I think it's all about flexibility. A quote from the website:

 

The customized AeroLogic network

On weekdays, freighters mainly fly to Asian destinations in the express network operated by DHL Express. At weekends AeroLogic is at Lufthansa Cargo´s services.

http://www.aerologic.aero/network

[tf51d]

The same reason airlines code share, to save costs while expanding their routes. If Aerologic has extra space on planes going to a destination Lufthansa or DHL doesn't now go, but want to serve, by teaming  up with another carrier, that has an existing flight, they don't need to add one themselves.

[gnomegemini]

Thanks for answers. But then code sharing would be enough isn't it?

[tf51d]

Thanks for answers. But then code sharing would be enough isn't it?

That's essentially what it is. Code sharing with the airlines was done by forming joint ventures between them, the 2 most notable Skyteam, and One World. This joint venture would essentially be the same, only for cargo.