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 until 2033.
As part of the new commercial arrangements, 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 January 1, 2019, replacing Air Hong Kong’s current agreement with DHL when it expires.
It 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 performs more than 800 daily flights to the United States, Europe and around the Asia Pacific region.
Ken Allen, CEO, DHL Express, commented: “Air Hong Kong has provided the backbone of our air express capabilities in Hong Kong for 15 years since 2002, and the latest agreement with Cathay Pacific will allow it to reach even greater heights as we consolidate its operations for maximal efficiency and availability.”
Cathay Pacific Chief Executive Officer 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. With Air Hong Kong becoming a wholly-owned subsidiary of our group, and with the block space agreement in place, these will enable us to invest in the long-term success of Air Hong Kong, which benefits from the prospering express air cargo market in the region, and capture the abundant business opportunities that are prevalent.”
Source: Deutsche Post DHL Group
