NEW DELHI, May 16: Lufthansa Cargo India (LCI), a 50:50 joint venture cargo airline between Lufthansa and the Hindujas, has got government clearence to take-off.

The cargo airline launched its first flight, a Boeing 747-200, from London to Delhi, via Sharjah, on Saturday.

The government nod has brought cheer to Lufthansa quarters as the joint venture partners were on tenderhooks in the wake of Ibrahim's new avaition policy. The policy, while barring foreign equity in domestic passenger airlines, is silent on the role of foreign investment in cargo ventures.

However, the clearence from the Directorate General of Civil Aviation (DGCA) for LCI, which is an international cargo airline based in India and owned by two foreign partners, has put to rest speculations on this front.

The DGCA approval to the joint venture, dated May 9, states, "It is informed that your application has been considered and you are permitted to operate air transport (cargo) services with Delhi as the operating base."

LCI was registered in India in February last year. The formal agreement for the joint venture was signed last year between Lufthansa's executive board chairman Wilhelm Althen and Hinduja group chairman SP Hinduja, in Frankfurt, Germany.

The air cargo company is headed by Robert Strodel, managing director, a Lufthansa nominee. In addition to MD, the functions of operations and marketing are to be dealt by Lufthansa nominees on the board of the company.

The London-based Hindujas will have two nominees of the board, handling finance and personnel. LCI will have a fleet of four Boeing 747-400 in the first year of its operation. The aircraft will operate between Bangalore, Chennai, Calcutta, Mumbai, and Delhi and Lufthansa's cargo hub in Sharjah.

LCI will also add Hyderabad to its destinations, within the first year, to be served by twice weekly flights that operate via Mumbai to the Sharjah hub.Earlier this year, due to strong pressure from its employees union, the German airline decided to absorb the 47 Indian employees working in Lufthansa Cargo into Lufthansa's passenger division or into LCI. A few of the employees accepted the voluntary retirement scheme.

LCI hopes to tap the growing opportunities in India's cargo sector, especially those represented by exports.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.