Luxembourg, London and Geneva  - 7 December  SITA INC (Information Networking Computing) and Cargolux Airlines International S.A. today announced their decision  to create the world's only company solely dedicated to provision of IT solutions to the air cargo industry. 

SITA INC subsidiary, SITA Cargo (UK) Ltd., and Cargolux's CHAMP Cargosystems SA, will merge to become the market leader in air cargo automation with unrivalled professional expertise, a global presence and a commitment to its present customer base of some 200 which it expects to grow rapidly.

"The new company will have a customer base in excess of 50 cargo airlines. The combined workforce of over 150 employees represents worldwide expertise in all areas of cargo and the industry will benefit greatly from the tapping of this deep industry knowledge through this joint venture," said Francesco Violante, Managing Director, SITA INC.

The new company will be headquartered in Luxembourg; 51% owned by SITA INC and 49% owned by Cargolux.  The main staff locations will be Luxembourg, the UK and the USA. There will be no job losses and a major investment programme is planned over the next five years.

"This is one of the most significant developments in air cargo IT automation. The industry needs a strong force with the know-how and experience to enable a new generation of systems that can deliver the functionality required at a cost the industry can afford. We can achieve this faster and more effectively through this partnership," said Uli Ogiermann, CEO of Cargolux.

Together, the parent companies have identified clear opportunities emerging around core cargo practices in a changing market, which are very much technology driven. These will focus on user friendliness and process optimization through improvements

in operationally critical areas such as data exchange with third parties and third party systems, piece level processing, open systems, RFID tagging, warehouse management system integration and PDA interfaces.

These developments will be carried out in line with customer expectations on cost containment, price competitiveness, scale, use of new communication tools, compliance with changing customs and security requirements. They will also support improved sales and distribution channels and ensure the capability to meet current and future standards such as Cargo2000 initiatives and paperless airway bills.

The nominee CEO of the new company was named today as John Johnston, an experienced cargo management professional. He is currently CEO of Cargolux's CHAMP Cargosystems SA.

"I'm excited about the prospect of leading this new enterprise.  We are committed to support our customers on their current platforms for at least the next five years and we will focus on a seamless transition to a new generation platform within that time-frame," said Johnston.

The new company will continue to provide the internal IT service and support for Cargolux airlines under the existing outsourcing agreement recently signed with CHAMP Cargosystems SA.

-Ends-

Notes to Editors:
About SITA
SITA INC
SITA INC (Information Networking Computing) is the world's leading provider of air transport focused applications, communications and IT infrastructure, enabling its customers to realize greater operational efficiencies and enhanced profitability. Building on a heritage of innovation, the company provides services to air transport customers and to related industries, as well as government authorities, offering a unique portfolio of solutions.  SITA INC is registered in Amsterdam, the Netherlands and recorded revenues of US$694.5 million in 2003.

Further information can be found at www.sita.aero

About Cargolux Airlines International
Cargolux, based in Luxembourg, is Europe's largest all-cargo airline, operating a modern fleet of 13 B747-400 freighters on a worldwide network, covering 90 destinations, 57 of which are served on scheduled all-cargo flights. The company has more than 85 offices in over 50 countries and also offers an extensive trucking network to more than 50 destinations in Europe and the US as well as charter and aircraft maintenance services. Cargolux employs more than 1,300 staff worldwide. For further information, please check www.cargolux.com

For further information (not for publication) contact:
SITA
Denis McClean
Mobile: +41 79 217 3357
Tel: +41 22 747 6824
E-mail: denis.mcclean@sita.aero

Cargolux Airlines International 
Mark Schonckert
Tel: +352 4211 3929
Fax:+352 4211 3509
E-Mail: mschonckert@cargolux.com 

© Press Release 2004