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Jettainer to provide further savings through largest global pooling operation proposed for the airline industry
RAUNHEIM, Germany – June 15, 2004 – Jettainer GmbH, a joint venture of Germany’s Lufthansa Cargo AG (LCAG), a logistics company within the Lufthansa group, and U.S. mobile asset management company TrenStar Inc., offers the world’s major airlines substantial annual cost reductions on unit load device (ULD) management and further savings through participation in what will be the largest global pool for these air cargo containers.
Jettainer managing director Dr. Mohammed Ali Seiraffi said LCAG failed to find a suitable ULD management solution on the market so pursued a joint venture with TrenStar, a leading provider of asset tracking technology. “Jettainer will serve the global air cargo market and form the basis for an industry-wide ULD pool, which, given the airline industry’s long history of adopting a consortium approach to providing shared infrastructure and services, bodes well for a neutral, third-party pool.”
“Jettainer leverages TrenStar’s asset management expertise and proven tracking technology and Lufthansa’s industry operational knowledge and relationships to provide all services to deliver or make ULDs available to individual clients or pool participants,” said Seiraffi. “Jettainer offers comprehensive services that feature the latest equipment and the most advantageous technology to deliver the right ULD type in the right number at the right time in the right condition to the right location.”
Jettainer will operate from more than 250 stations worldwide where ULD management services will include detailed process setups with freight forwarders, ground handlers and other parties. Jettainer offers an integrated track and trace system to provide airlines with near real-time visibility of ULD inventory levels at all stations, said Jettainer sales manager and TrenStar senior vice president of new markets Chris Sapyta. Jettainer’s ULD pooling operation will benefit all pool members through improved efficiencies, greatly reduced capital requirements and lower, predictable fixed operating expenses, he said.
“Over the past two years the airline industry has made an extraordinary effort to cut costs in every portion of business operations. Now the airlines have a chance to further reduce expenses,” Seiraffi said. “The concept of outsourced ULD asset ownership, management and pooling opens up another avenue leading to long-term savings.”
“Airlines will always compete for passenger miles and cargo contracts, however by selling off non-core assets to a neutral third-party management company the airlines can come together to achieve the common goal of reducing costs and creating operating efficiencies,” said TrenStar chairman and Jettainer board member Hennie Van der Merwe. “Airlines get back to their core business while Jettainer optimizes the ULD supply chain. Everybody wins.” Van der Merwe cited a similar success in the beer keg industry in the UK, where TrenStar now owns and manages more than 60 percent of beer kegs and is in the beginning stages of pooling those assets.
LCAG is the world's largest international airfreight carrier and Jettainer’s first client. Jettainer’s long-term contract with LCAG transfers ownership and management of LCAG’s approximately 26,000 ULDs to Jettainer. Jettainer will add its special units to LCAG’s fleet.
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About Jettainer
Jettainer is the leading international service provider for outsourced ULD management. Established as a joint venture in 2003, the company operates the largest ULD fleet in the world from 400 stations worldwide. Jettainer offers airline clients including Lufthansa Cargo and US Airways higher availability of ULDs, economies of scale gained from combining fleets, increased savings on purchasing, better repair contracts, decentralized maintenance for faster repairs, continuous engineering of ULDs and a standardized fleet. The primary shareholders of Jettainer are mobile asset management company TrenStar Inc. headquartered in Denver, Colorado, and Lufthansa Cargo, one of the world’s largest international airfreight carriers, based in Frankfurt, Germany. Jettainer is headquartered in Raunheim, Germany. On the Net: www.jettainer.com
About TrenStar
TrenStar’s supply chain technology and services heritage has evolved into a pioneering RFID-enabled, “pay-per-use” model of mobile asset management designed to reduce transportation and operating costs for companies invested in containers that move raw materials, work-in-progress and finished goods through the supply chain. TrenStar’s three-part asset management, logistics services and supply chain technology solution, integrating RFID and container tracking software, is offered to qualified clients for no up front cost. This solution is intended to benefit multiple companies in an asset-intensive industry participating in TrenStar’s distinctive asset pooling operations.
TrenStar and its affiliates focus on brewing, food & beverage, chemical, air cargo, automotive, healthcare, retail and other asset-intensive industries. Scottish Courage Breweries, Carlsberg UK, Coors, Kraft and Burberry use TrenStar’s products and services. Clients of TrenStar’s affiliates include Ford, Toyota, ExxonMobil, DaimlerChrysler and Dow Chemical. Headquartered in Denver, Colorado and recognized as one of the top Denver-area software developers, TrenStar has offices in the United Kingdom, Australia and South Africa. TrenStar is privately held, and the primary shareholders are Trencor Limited, The Carlyle Group and the Leede Companies. On the Net: www.trenstar.com
About LCAG
Lufthansa Cargo AG (LCAG), an independent logistics company within the Lufthansa group, is the world's largest international airfreight carrier leading the IATA rankings. LCAG offers airport-to-airport transport and time-definite services for perishables, animals, valuable and dangerous goods at almost 500 service stations in 99 countries. LCAG markets the belly capacities of over 300 Lufthansa passenger aircraft and has access to the capacities of Thomas Cook, Sun Express and the Spanish Airline Spanair.
In the biggest operative tie-up in the logistics industry between an airfreight carrier and express operator, LCAG and DHL share five intercontinental routes. Additionally with SAS Cargo, Singapore Airlines Cargo and Japan Airlines Cargo, LCAG is a member of the WOW Cargo Alliance, the first worldwide airfreight alliance, awarded Best Air Cargo Alliance for the second consecutive year at the Asian Freight and Supply Chain Awards in Shanghai. LCAG has joint ventures with Air New Zealand Cargo, Air China Cargo, Cathay Pacific Cargo, Eva Air Cargo, Korean Air Cargo, LanChile Cargo and South African Airways Cargo.
LCAG is headquartered in Frankfurt, Germany and employs over 5,000 people. On the Net: www.lhcargo.com |
