DHL is to expand its Asian operations with deals to develop an express cargo terminal at Hong Kong International Airport (HKIA) and to acquire 30% of Air Hong Kong.
The express freight company announced early in October that DHL Worldwide Express had acquired 30% of Cathay's all-cargo subsidiary, Air Hong Kong, which will be expanded with additional aircraft.
The deal was announced a week after DHL won a bid to develop and operate an express cargo terminal at HKIA that will serve as its Central Asia hub.
DHL already has strong ties to Cathay. Since March 2000 the two have had a novel arrangement under which Cathay carries express freight overnight to a handful of Asian points on Boeing 777 and Airbus A330 passenger aircraft that would otherwise remain parked.
The tie-up has been highly successful for both Cathay and DHL, and the two have since its launch considered expanding it with all-cargo aircraft. "The express cargo joint venture will strengthen our service to more major Asian cities than ever and complement our collective vision for consolidating Hong Kong as the key express logistics centre of Asia," says DHL chief executive Uwe Dörken.
Earlier this year Cathay refocused the operations of Air Hong Kong on the intra-Asian market. It brought two of the carrier's three aircraft and its long-haul route network back within its own freight operation.
Cathay has for some time been studying the addition of Airbus A300 freighters for Air Hong Kong, which will be its first "regional" cargo aircraft. The carriers currently only operate larger Boeing 747 freighters. Air Hong Kong now has just one 747-200F.
Cathay says Air Hong Kong plans to purchase five freighter aircraft by 2004 and the fleet will expand to at least eight aircraft by 2010. It adds that "an initial investment of about $300 million will be committed to the venture before 2004 and a further $100 million by 2010".
Source: Airline Business
