Cathay Pacific selects DHL Supply Chain to manage its service parts logistics


DHL Supply Chain has commenced management of all aircraft maintenance, repair and overhaul logistics activities for Cathay Pacific and Cathay Dragon in the airlines’ home base at Hong Kong International Airport (HKIA), part of a 10-year contract signed earlier this year.

The contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft. DHL Supply Chain will also work with incumbent aircraft maintenance provider HAECO to provide additional services including parts inspection and airside operations. A core team of 120 DHL Supply Chain specialists manage more than 90,000 sq ft of warehousing space, processing 1m units of spares transaction per year. The operation includes delivery, reporting and governance procedures. 

Cathay Pacific Director, Engineering, Neil Glenn, said: “The arrangement that we now have in place allows all three parties to concentrate on their specific core capabilities, namely: airline management (Cathay Pacific), aircraft maintenance (HAECO) and now, DHL will be responsible for the maintenance, repair and overhaul (MRO) supply chain management,” added Mr. Glenn.

“DHL Supply Chain has invested heavily in building up its capabilities to service the aviation industry’s exacting safety and compliance needs. With Hong Kong taking the lead, we are looking at extending this capability in the Greater China region, particularly mainland China and Taiwan,” said Yin Zou, CEO, DHL Supply Chain Greater China. “This new contract is a significant addition to our aviation maintenance, repair, and overhaul capability and contracts for DHL Supply Chain and will only encourage us to deepen our commitment to airlines looking to streamline and strengthen the logistics processes that keep their fleets and returns aloft.”

“This new deal makes Cathay Pacific both the top customer for DHL Supply Chain in Hong Kong, as well as a global pioneer in adopting third-party logistics for aviation maintenance, repair and overhaul,” said Jez McQueen, Managing Director, DHL Supply Chain Hong Kong and Macau. “We are extremely honoured that one of the world’s most respected airlines has turned to us to manage this critical part of the supply chain that ensures the safety of thousands of lives every day. The airline and MRO world is rapidly changing, which means that the supply chain now has a very important role to help organisations meet both their customer promises as well as the financial returns that investors require.”

Source: Deutsche Post DHL Group

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