Deutsche Post DHL and Lufthansa today shook off the global recession and displayed their confidencein a market recovery and long-term growth with the official launch of their new joint venture cargo
airline AeroLogic.Despite the poor market conditions at present, executives stressed at a ceremony atLeipzig/Halle Airport that the new intercontinental cargo airline, which will build up a fleet ofeight brand-new B777 freighters by next year, is a long-term investment in a growth market. TheEurope-Asia trade lane is expected to grow 5% a year in the medium-term, according to the partners.
“In light of an inevitably recovering market, the strengthening of vital trade lanes throughthe cost-efficient shared use of the most modern freighter aircraft currently available must beviewed as a smart investment,” said Deutsche Post DHL CEO Frank Appel. “We are convinced that it isright and important even in times of economic crisis to invest in our own capacities.” DeutschePost had not seen any significant change in demand in April, neither upwards nor downwards, Appeladded. “It looks as though the bottom of the slump has been reached,” he commented.
Lufthansa Cargo CEO Carsten Spohr commented: “The AeroLogic investment is long-term. It’s alow-risk business model and the logic is right.” The two companies will have invested about €15million – €17 million in AeroLogic by the time it is in full operations next year, he disclosed.The company’s equity capital is €50 million.
AeroLogic still aims to break even in 2010, according to joint managing director ThomasPusch. However, the original target of €550 million in revenues by 2011 is now “obsolete” due tothe market downturn in recent months, DP DHL chief Appel stressed.
The eight B777 freighters will all be leased, with four scheduled for delivery this year andfour more in 2010. Original plans to build up a fleet of 12 planes by 2012, however, have beenscaled back. Charlie Dobbie, DHL Express executive vice president network operations, confirmedthere are no current orders for further B777Fs but stressed that the airline can be scaled up inthe future if necessary. “We are happy that we can meet customer demand with eight aircraft,” hecommented.
“Through the new cargo airline, DHL Express underlines its commitment to providing highlyreliable and industry leading services to its customers. Using the most modern technologyavailable, DHL Express is able to further expand its global lead in the Time Definite Internationalexpress business,” Dobbie added.
The first B777F will make its inaugural commercial flight on June 29. The initial weekdayrouting for DHL Express will be from Leipzig via Bahrain to Singapore, returning via Delhi. Weekendflights for Lufthansa Cargo will initially operate between Leipzig and Hong Kong via Tashkent.Other planned weekday destinations once AeroLogic is operating with a larger fleet include Bangkok,Dubai, Hong Kong, Seoul and Shanghai, while future weekend destinations include New York andChicago.
DHL Express will use the bulk of the B777F’s 103 tonne capacity on the weekday flights whileLufthansa Cargo will be responsible for filling most of the weekend capacity. The capacity splitvaries according to the destination and the flight day, and the two partners will be able tooptimise utilisation by combining their volumes, Spohr pointed out.
At the inauguration ceremony, AeroLogic officially received its Air Operator Certificate(AOC) from the German Aviation Authority (LBA). The airline currently has more than 80 employees,including pilots. An estimated 200 jobs are to be created by AeroLogic, about 80 percent of thesein the cockpit.
Due to its advanced fuel-saving and environmental friendly engine and wing technology, theB777F is the most modern wide-body long-range freighter currently available. It can fly distancesof over 9,000 km, which enables non-stop flights from AeroLogic’s home base at Leipzig to key Asiangrowth markets, thereby reducing shipment transit times.
