Published 14 December 2017
DHL Express extended its Air Hong Kong (AHK) agreement, which grants the express services provider access to AHK’s overnight air services.
The new agreement extends to 2033. Under the deal, DHL will divest its 40% stake in Air Hong Kong to majority-owner Cathay Pacifi, and acquires eight of Air Hong Kong’s A300-600F cargo planes.
DHL will lease the purchased cargo planes to Air Hong Kong to use for carrier’s overnight air services and support DHL Express network until 2033.
Initially, the new deal will allow to offer DHL with the same service and access to Air Hong Kong’s capacity as per the current agreement.
The new deal will also provide flexibility in aircraft deployment and route selection to support DHL’s express services in the Asia Pacific region.
Air Hong Kong is a crucial partner in DHL’s Asia Air Network, which uses more than 800 daily flights to the US, Europe and across the Asia Pacific region.
Recently, DHL Express announced the expansion of Central Asia Hub in Hong Kong, which is a purpose-built air express cargo facility at the Hong Kong International Airport that serves more than 800 flights per day.
Under the expansion, an additional 8,000m² of space and new technologies such as automated X-ray inspection machines and material handling systems will be added to the facility.
DHL Express CEO Ken Allen said: “Asia is expected to experience exponential trade growth and our renewed block space agreement with Air Hong Kong forms a natural complement to DHL’s broader growth strategy in Asia Pacific to meet continually strong market demand.”
Cathay Pacific CEO Rupert Hogg said: “Air Hong Kong is a joint venture between Cathay Pacific and DHL that has proven extremely valuable to both our businesses, and we expect it to yield even better results and operational agility in its newest iteration.”
Image: DHL Express and Air Hong Kong sign 15-year block-space agreement. Photo: courtesy of Deutsche Post AG.
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