Europe's largest airline company Lufthansa is preparing to quit the Chinese market due to price wars, CEO of the airline's subsidiary Lufthansa Cargo Ga Nate said at a Frankfurt logistics conference.

In 2004, Lufthansa Cargo, German Investment and Development Company and Shenzhen Airlines established the cargo joint venture Jade Cargo International. The three parties hold 25 percent, 24 percent and 51 percent of the venture respectively.

Jade Cargo International hasn't performed as Lufthansa expected since it began operation. Sources said that the company had made less than 20 percent of its operating revenue targets and is facing difficulties with refinancing.

Lufthansa itself is also undergoing financial troubles, forcing it to withdraw from unprofitable markets. The airline giant took in 494 million euros in operating revenue in the third quarter, down 21 percent year-on-year. Lufthansa plans to cut operating cost by 1.5 billion euros before 2013.

Lufthansa is currently in talks with British Airways and Virgin Atlantic Airways about equity transfers.

China's business press carried the story above on Friday.