DHL’s new €100 million air express capacity increase in Asia is in the form of a share of thelease rather than a purchase of three B747 freighters, the company has clarified to
CEP-Research.The B747-400 Boeing converted freighters (BCFs) are to be operated by Air Hong Kong, 40% ownedby DHL, under a dry-lease arrangement from Cathay Pacific, which own the other 60% of the Air HongKong joint-venture airline.
Jerry Hsu, CEO of DHL Express Asia Pacific, told CEP-Research: “The €100 million investment isour commitment under the leases of the three B747-400BCFs. This investment is intended to increaseDHL’s capacity on these high demand routes – Hong Kong-Narita (Tokyo), Hong Kong-Singapore and HongHong-Pudong (Shanghai) – and improve our connectivity and service reliability. Through theintroduction of these new aircraft, we will be doubling the capacity on two of the high-demandroutes, namely Narita and Pudong, and the third B747-400BCF has been deployed on HongKong-Singapore service, replacing a previous wet-leased B747-400BCF.
“The two A300-600Fs that will be displaced from current the Hong Hong-Narita and HongHong-Pudong services will be redeployed on Hong Kong-Manila and Hong Kong-Beijing routes, sooffering an increased capacity for each of these network destinations.”
Hsu said DHL’s corporate policy does not allow him to divulge volume figures in terms of thecurrent rate of growth of these markets.
“However, we are very optimistic about the continual growth in Asia Pacific, and this investmentin Asia Pacific air network enhancements demonstrates our commitment to the region and my ‘closerto market’ business philosophy,” Hsu added. “Earlier last month, we launched an additional dailyintercontinental route from Hong Kong to Cincinnati, as a direct response to increasing demands forservices from South China and Hong Kong to North America.”
According to DHL’s 2010 annual report, Asia Pacific is DHL Express’s fastest growing region,achieving more than 30% revenue growth in 2010.
Air Hong Kong currently flies from its home base, Hong Kong, to Bangkok, Penang, Singapore,Taipei, Narita, Kansai, Nagoya, Seoul, Shanghai, Beijing and Manila.
It was the launch customer of a fleet of eight Airbus A300-600F general freighters which enteredinto service between September 2004 and July 2006, but received a capacity boost last month by dryleasing three Boeing 747-400 BCF aircraft.
DHL Express is AHK’s main customer, and the bulk of the cargo is express parcels. The remainingcargo is general freight.
