Scandinavian Sirlines, Lufthansa and Singapore Airlines sign mou to study cargo venture

SCANDINAVIAN AIRLINES, LUFTHANSA AND SINGAPORE AIRLINES SIGN MOU TO STUDY CARGO VENTURE Scandinavian Airlines System (SAS), Lufthansa Airlines (LH), and Singapore Airlines (SIA) today announced plans for closer co-operation in the air cargo business. A Memorandum of Understanding (MOU) has been signed by Mr. Jan Stenberg, President and Chief Executive Officer of SAS, Mr. Juergen Weber, Chairman and Chief Executive Officer of Lufthansa, Mr. Wilhelm Althen, Chairman of the Executive Board of Lufthansa Cargo and Dr. Cheong Choong Kong, Deputy Chairman and Chief Executive Officer of SIA. The MOU provides for a feasibility study on various integration models among the companies in the airfreight market. The study, which is to be completed within a year, will scrutinise the prospects for wide-ranging matching of network management, marketing and sales, product harmonisation and a common infrastructure for information technology. It will look also at the type of organisational structure best suited to implement these extensive integration plans. Mr Stenberg expressed great satisfaction over the fact that SAS Cargo was one of the three initiators of the study. "Air freight is after all becoming a mature business and it is therefore natural that it in the future should develop more on its own terms. We have seen this development coming for some time now and I am very pleased that SAS Cargo, together with its two partners, has placed itself in the lead." Mr Weber noted: "In the increasingly intensive competitive environment, the common aim of the companies committed to the project is to strengthen their position in the air cargo market of the future and equip themselves to serve even better the global logistics requirements of their customers and partners. They will seek especially to harness synergies from their joint activities." Explaining the purpose of the project, Dr Cheong said: "There is a growing trend towards globalisation and maintaining just-in-time inventories. With our combined freighter network covering the Americas, Europe, Asia, the Middle East, South Africa and the Southwest Pacific, our customers will be able to enjoy improved service benefits, such as more frequent and direct routes, increased capacity and shorter transit times." The signing of the MOU enhances ties between three cargo carriers that already command a major position in the world airfreight market. According to International Air Transport Association (IATA) statistics for international air cargo traffic in 1997, the combined international market share for all three airlines was more than 13 per cent. SAS CORPORATE COMMUNICATIONS ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/07/31/20030731BIT00340/wkr0001.doc http://www.waymaker.net/bitonline/2003/07/31/20030731BIT00340/wkr0002.pdf