Lufthansa and Shenzhen Airlines have agreed to liquidate their joint venture in Jade Cargo International. Jade Cargo had been established in 2004 and operated a fleet of 6 Boeing 747 Freighters.

The dissolution of Jade Cargo comes as little surprise since Jade’s operations have been halted since January of this year. For 2011, Lufthansa had recognized a loss of €16 million as a result of their stake in the venture.

According to commments made by Lufthansa’s Chief Executive Christoph Franz at the IATA Annual General Meeting in Beijing over the weekend, he had suggested that there is too much capacity compared to the needs of the European Cargo market and that this was the best long term solution.

This lack of demand had been previously blamed on the economic crisis that has gripped Europe in recent years and the decreased demand for imported goods as a result.

An attempt to salvage to venture had failed after Chinese firm UniTop abandoned its bid to acquire Jade Cargo earlier this year.