- 14 December 2017
- Transport / Logistics Services
DHL Express has agreed a 15 year block space agreement with Air Hong Kong.
The deal will involve DHL selling its 40% stake in Air Hong Kong to the majority owner, Cathay Pacific. DHL will now buy eight of Air Hong Kong A300-600F that the express carrier will lease back to Air Hong Kong. It will replace the current deal when it comes into force on the 1st January 2019.
The new deal between the companies will initially give DHL the same air freight capacity as it has with the carrier now. It does however increase flexibility where it comes to cargo space and regarding route selection and aircraft deployment, and will give room for expansion of DHL’s air cargo capacity when it needs it in future.
“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,” said Ken Allen, CEO, DHL Express. “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.”
DHL Express has also announced the expansion of its Central Asia Hub in Hong Kong. This is a dedicated and purpose built air cargo facility at Hong Kong’s international airport that serves more than 800 flights daily.
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