DHL will sell its 40% stake in Air Hong Kong
DHL Express has extended its partnership with AHK Air Hong Kong Limited with a new 15-year block-space agreement which will enable the carrier’s overnight air services to continue supporting the DHL Express network to 2033.
DHL will sell its 40% stake in Air Hong Kong to majority-owner Cathay Pacific, and purchase eight of Air Hong Kong’s A300-600F cargo planes which will then be leased back to the carrier. The new arrangement will provide a stable revenue stream to Air Hong Kong and a predictable cost base for DHL. The new agreement takes effect on 1 January 2019, replacing Air Hong Kong’s current agreement with DHL when it expires.
The new agreement will initially provide DHL with the same service and access to Air Hong Kong’s capacity as per the current agreement, but allows for greater growth and flexibility in aircraft deployment and route selection to support DHL’s express services in the Asia Pacific region. Air Hong Kong remains an important partner in DHL’s Asia Air Network that utilizes more than 800 daily flights to the United States, Europe and around the Asia Pacific region.
DHL Express recently also announced the expansion of its Central Asia Hub in Hong Kong, a dedicated and purpose-built air express cargo facility at the Hong Kong International Airport which services over 800 flights daily. The expansion will add an additional 8,000 m² of space as well as new technologies including automated X-ray inspection machines and material handling systems.
The Central Asia Hub has seen shipping volumes grow 12 percent year-on-year for the past decade and already handles more than 40 percent of all DHL shipments in Asia Pacific. When operating at its full capacity, the annual throughput of the expanded CAH is expected to go up by 50 percent to 1.06 million tonnes per annum. The expanded CAH will handle six times more in terms of shipment volume than when it was first established in 2004.