Galaxy Airlines, the air cargo arm of Japanese parcel and logistics group SG Holdings, hassuspended all its flights due to growing losses and low revenues, Japanese media reported.
According to reports, the company will sell its medium-sized cargo planes and is expected tobe liquidated by March next year. Galaxy operated its two A300-600 freighters on four domesticroutes. The full flight suspension was officially notified to the Ministry of Land, Infrastructure,Transport & Tourism.
The closure follows the carrier’s announcement in August 2008 that it would suspend regulardomestic air cargo business at congested airports. One month ago, Galaxy halted flights on all ofits four domestic routes, linking Tokyo’s Haneda airport with Hokkaido’s New Chitose, FukuokaPrefecture’s Kitakyshu and Okinawa Prefecture’s Naha, and Osaka Prefecture’s Kansai airport withNew Chitose.
Sagawa Express, the subsidiary of SG Holdings and majority owner of Galaxy Airlines, foundedthe cargo airline in 2005 as an in-house airline to transport its shipments with the aim ofexpanding its next day delivery service. Galaxy launched operations in October 2006 but never mademoney. The company’s business had been in the red amid slumping per-delivery revenue and soaringfuel costs, Jiji Press further reported.
Sagawa Express tried to convince minority shareholders to back a restructuring of the airlinebut it was not successful, leading to the decision in August to stop all operations. It is thefirst time for a Japanese air cargo company to quit its business since Orange Cargo Inc. in April2004.
