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Interview – DHL builds up intercontinental air network

Charles Graham

DHL Express will launch intercontinental flights between Europe, Asia and the USA with own ordedicated cargo planes over the next 12 months, creating a controlled global air network to enable

faster transit times and in response to customer demand, Charles Graham, CEO Global Aviation, toldCEP-Research in an exclusive interview.

The new intercontinental fleet will be supported by the existing regional airlines in Europe,Asia, the USA, Latin America and the Middle East to provide regional feeder flights, he said on thesidelines of the European air hub opening at Leipzig/Halle airport on May 26. DHL’s total air fleetcurrently consists of 350 owned or dedicated aircraft.

“Intercontinental links between the regions relied on commercial uplift. DHL’s globalaviation strategy is to replace these connections with dedicated uplift,” Graham explained. “Thereis a need to control our own destiny, to control our own capacity.”

Instead of relying on “other people’s schedules” for passenger or cargo flights, DHL would beable to speed up processes, optimise flight departures and thus improve transit times “significantly” with later cut-off times, he pointed out.
 
On transpacific routes, US airline Polar Air Cargo, in which DHL now owns 49%, launcheddedicated flights between Hong Kong, home of DHL’s Central Asia hub, and the US air hub atWilmington with two B747 freighters in March. These aircraft replaced flights previously operatedby Malaysian partner Transmile with lower capacity MD-11 freighters. “The first two aircraft havebeen a tremendous success and we have almost 100% performance,” Graham noted.

In October, Polar’s remaining six B747 freighters dedicated to DHL will launch operationsbetween Asia and the USA, largely replacing capacity so far contracted with Northwest AirlinesCargo.

In April 2009, Aerologic, the new joint venture airline with Lufthansa Cargo, will take offwith its first B777-200 long-range freighter operating between Europe (Leipzig) and Asia, Grahamsaid. Four B777s are scheduled for delivery next year, a further four in 2010, two more in 2011 anda reserve aircraft in 2012. This will give Aerologic a fleet of 11 B777-200s. Preparations for thelaunch of Aerologic are going well, said Graham. “We have started hiring pilots and already haveabout 15 pilots. We’ve already started the training. We’re pleased with the progress.”

For the transatlantic market, DHL Express has decided to start operating routes itself oncethe existing joint venture with Lufthansa Cargo expires next year, Graham disclosed. The expressoperator has ordered six B767 freighters, with three deliveries in 2009 and three more in 2010.

“The first three B767s will be operated by a DHL airline from European airports to the USA,”he said. This will be the UK-based DHL Air. “This makes economic sense for us. It’s a naturalextension of our activity,” he explained. Key destinations to be connected will include Leipzig,East Midlands (UK), Brussels and Frankfurt, along with Wilmington and New York.

In Europe, the air fleet has been extended with 12 aircraft operating additional flights todestinations such as Paris and Amsterdam, Graham said. The core European fleet now comprises 35B757s, 21 A300s and eight B737s along with smaller turboprop planes.

In Asia, Air Hong Kong, the joint venture with Cathay Pacific, had been “an outstandingsuccess”, Graham commented. The airline currently operates regional routes to 11 Asian destinationswith a fleet of eight new A300s. “We are now looking at extending the capacity,” Graham said. DHLis also in discussions with Indian subsidiary Blue Dart about extending the latter’s domestic airoperations to international destinations, he confirmed.

In Latin America, DHL Express is upgrading its Panama-based air fleet by replacing six B727swith B757s.

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