October 6, 2008
SG Holdings to Pull Plug on Air Cargo Biz
Tokyo, Oct. 6 (Jiji Press)--Galaxy Airlines, the air cargo arm of Japanese transportation service group SG Holdings Co., reported to the Ministry of Land, Infrastructure, Transport and Tourism on Monday that it will close down.
The company will sell its two medium-sized cargo planes and be liquidated by March next year.
Galaxy was established in 2005 with the aim of expanding the area in which packages could be delivered the next day.
But the company's business had been in the red amid slumping per- delivery revenue and soaring fuel costs.
On Sept. 28, Galaxy halted flights on all of its four domestic routes, linking Tokyo's Haneda airport with Hokkaido's New Chitose, Fukuoka Prefecture's Kitakyshu and Okinawa Prefecture's Naha, and Osaka Prefecture's Kansai airport with New Chitose.END
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