US Airways Dividend Miles (Pre-FlightFund Merger) - Lufthansa, US Airways sign cargo cooperation deal

http://biz.yahoo.com/rc/040723/airlines_lufthansa_usairways_1.html

Reuters
Lufthansa, US Airways sign cargo cooperation deal
Friday July 23, 7:21 am ET

FRANKFURT, July 23 (Reuters) - Deutsche Lufthansa AG (XETRA:LHAG.DE - News) and US Airways (NasdaqNM:UAIR - News) have signed an agreement to cooperate on air freight services between Europe and the United States, the companies said on Friday.

Under the marketing and freight handling pact, Lufthansa Cargo will help fill capacity in the bellies of US Airways flights from Europe to America, beginning September 1.

The airlines will also combine their cargo operations in joint facilities at all the European airports served by US Airways, as well as at Philadelphia, Pittsburgh and Charlotte in the United States, in order to lower operating costs.

"Lufthansa Cargo customers will benefit from an even more attractive network in the future," said Andreas Otto, Lufthansa Cargo executive board member for marketing and sales.

Lufthansa Cargo, based at Frankfurt airport, is the biggest air cargo company in the world with 6.7 percent of the global market, measured in tonnage multiplied by distance travelled.

The company is cutting costs and trying to stimulate growth to return to profit levels of 2000, before an economic downturn caused a slump in the air freight market. Currently 0.5 percent of cargo is transported by air worldwide.

US AIRWAYS AND LUFTHANSA CARGO ENTER INTO TRANSATLANTIC CARGO MARKETING AND FREIGHT HANDLING AGREEMENT

FRANKFURT, July 23, 2004 -- US Airways and Lufthansa Cargo have entered into a wide-ranging cargo agreement covering select routes from Europe to the U.S.

Under the agreement, beginning Sept. 1 2004, Lufthansa Cargo will assume responsibility for marketing US Airways' freight capacity on flights originating in Europe destined for the United States. Customers can then rely on established products and processes of Lufthansa Cargo.

In addition, the carriers will consolidate operations and plan to move under one roof at all European airports served by US Airways and in Philadelphia, Pittsburgh and Charlotte, N.C. This will enhance the carriers' synergies and cost efficiencies at those locations. The carriers will endeavor to consolidate other operations throughout their networks.

The initial phase of the agreement will include all US Airways flights from Amsterdam, Munich and Paris (Charles De Gaulle) to Philadelphia International, as well as routes from Frankfurt to Charlotte, Philadelphia and Pittsburgh.

With Phase II, which will begin Oct. 1 2004, Lufthansa Cargo will begin marketing and handling US Airways' freight capacity from London (Gatwick) to Charlotte, Philadelphia, Pittsburgh, and from Madrid, Manchester and Rome to Philadelphia. Beginning in the summer of 2005, services to Philadelphia from Glasgow, Dublin and Shannon will be added to the cargo-service agreement.

"Through this agreement with Lufthansa Cargo, we expect to increase our operational efficiency and marketing exposure to better serve our customers," said B. Ben Baldanza, US Airways senior vice president of marketing and planning. "We are pleased to be able to expand the breadth of services that we share with our Star Alliance partner Lufthansa."

For Dr. Andreas Otto, member of the Lufthansa Cargo Executive Board responsible for Marketing and Sales, the partnership is a win-win situation. "Lufthansa Cargo customers will benefit from an even more attractive network in the future. Lufthansa Cargo products and enhanced interline processes plus seamless interlinking of both companies' IT systems will also deliver a high degree of reliability throughout the transport chain."

Lufthansa and US Airways are members of the Star Alliance. US Airways has been a member of the Star Alliance since May 4, 2004, and has expanded the alliance's network to more than 750 destinations.

Lufthansa Cargo AG
Corporate Communications
Nils Haupt
Tel.: +49 69 696 91123
Fax: +49 69 696 91185
Nils.haupt@dlh.de
www.lufthansa-cargo.com

US Airways
Corporate Affairs
Amy Kudwa

Perhaps an agreement like this will lead to something like UA and LH have where you can upgrade on the other's metal.