Category Archives: DHL Express

First Airbus A330-300P2F enters service with DHL

Europa, Deutschland, Sachsen, Dresden. A330 Prototyp. Elbe Flugzeugwerke GmbH. An Airbus and ST Aerospace Company. 29.11.2017 © 2017 Sven Döring / Agentur Focus

DHL Express has become the first operator to take delivery of the A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW), the joint venture between ST Aerospace and Airbus. This delivery, which took place at EFW’s freighter conversion facilities in Dresden, follows the successful completion of test flights in October and awarding of the Supplemental Type Certificate (STC) by the European Aviation Safety Agency (EASA) in November. DHL Express has firm orders for eight A330-300P2F units in total, with additional options to receive another 10.

The A330P2F conversion program, launched in 2012, is a collaboration between ST Aerospace, Airbus and their joint venture EFW. ST Aerospace, as the program and technical lead for the engineering development phase, is responsible for applying for the STCs from EASA and the US Federal Aviation Administration (FAA). Airbus contributes to the programme with OEM data and certification support, while EFW leads the industrialization phase and marketing for the freighter conversion program.

The A330P2F program has two variants – the A330-200P2F and the larger A330-300P2F. The latter is ideal for serving the international express B2B and e-commerce cargo markets, which typically have a higher volume and lower density. The aircraft can carry up to 62 metric tonnes over 3,650 nautical miles, while offering 20 percent more cargo volume and lower cost-per-tonne than other available freighter aircraft types with a similar range.

Photos: Airbus.

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DHL awards second Airbus A330-300P2F conversion contract to ST Aerospace

DHL Express and ST Aerospace on June 19, 2017 announced an extension of their partnership to launch a new cargo conversion of the mid-range, widebody Airbus A330 aircraft. DHL awarded a second tranche A330-300P2F (Passenger-to-Freighter) conversion contract to ST Aerospace’s subsidiary, Elbe Flugzeugwerke (EFW), which is jointly owned with Airbus Group.

This follows the launch contract for four A330-300P2F conversions that was also awarded by DHL Express in July last year. The first aircraft under the launch contract is currently undergoing conversion at EFW’s Dresden-based facilities, and is on track to be redelivered by the end of 2017. Under the latest agreement, EFW has contracted a further four Airbus A330-300 conversion slots to DHL together with options for an additional 10 conversions.

The A330P2F conversion program, launched in 2012, is a collaboration between ST Aerospace, Airbus and EFW. The A330P2F program includes two versions – the A330-200P2F and the larger A330-300P2F. DHL Express is EFW’s first customer for the A330-300P2F conversion program. The first aircraft under the DHL Express A330-300P2F program is currently undergoing conversion at EFW’s Dresden-based facilities, while work is set to begin on a second aircraft at an ST Aerospace engineering facility in Singapore. The first two aircraft are scheduled to be redelivered by the end of 2017.

DHL announces a major expansion at its Cincinnati cargo hub

DHL Express (Plantation, Florida) has made this announcement about its expanding CVG cargo hub:

DHL logo (LRW)

DHL, the world’s leading logistics company, announced today it is investing $108 million to expand its Americas hub facility at the Cincinnati-Northern Kentucky airport (CVG) to meet the demands of continued growth in international e-commerce and global trade. The expansion will provide more gates to accommodate additional aircraft, warehouse space and new equipment to provide more capacity for sorting shipments as well as unloading and reloading planes.

The CVG hub, one of three DHL global hubs, connects the United States to the DHL global network spanning Asia, Europe and the Americas. Processing approximately 46 million international shipments annually, the CVG hub handles shipments bound for the U.S., Canada, Mexico and Latin America. It also connects nearly 100 service centers nearly 100 service centers, gateways in Los Angeles and New York, and a hub in Miami to more than 220 countries and territories around the world. DHL’s two other global hubs are in Leipzig, Germany and Hong Kong.

DHL has applied to the Kentucky Economic Development Finance Authority for several tax incentives as part of this project. Today DHL received approval from the development authority for a sales and use tax credit on construction costs, building fixtures, electronic processing equipment as well as equipment used in research and development. The state of Kentucky provides the tax incentives to encourage companies to invest and expand their operations in the state.

With this new investment, DHL will have invested $280 million in the CVG hub since establishing its U.S. international operations center at the Cincinnati/Northern Kentucky airport in 2009. Staffing has also grown, from 1,600 in late 2009 to approximately 2,000 currently.

DHL has invested significantly in its global express network in recent years, in order to reinforce its leading position in international time definite delivery. In the last 18 months, the company has announced major investments, including $200 million to double its European hub in Leipzig, $85 million in a new South East Asia Hub in Singapore, and $177 million expansion program in the Middle East and North Africa. DHL is also modernizing its air fleet, introducing more efficient freighter aircraft with increased capacity to bolster connectivity for its global customer base.

The various expansion and equipment projects covered by this latest investment in the Cincinnati hub should be completed in late 2016.

All images by DHL.

Photo by PL Rogers

Photo by PL Rogers

DHL Express brings helicopter delivery service to Chicago

DHL (Helimotion) Bell 206B3 Jet Ranger (DHL)(LR)

DHL Express (Plantation) announced on April 28 that it launched its helicopter service in Chicago to provide early morning delivery services for the area’s financial and legal firms requiring urgent document delivery.

DHL logo (LRW)

According to the company, “DHL Express is the only express delivery company in the U.S. to utilize helicopters for deliveries and introduced the helicopter into its Chicago operation to guarantee early morning delivery service, regardless of traffic bottlenecks. The service will be used by many globally-recognized financial and professional services customers.”

International shipments destined for Chicago enter the U.S. for processing at the DHL Americas Hub in Cincinnati before connecting to a flight bound for the Chicago O’Hare International Airport. Shipments are then separated, loaded into the DHL helicopter and transported to the new Vertiport Chicago in the Illinois Medical District. From there, a DHL courier meets the helicopter and provides the final mile delivery.

The DHL helicopter, a Bell 206B3 Jet Ranger, is operated for DHL by Helimotion (Joliet, Illinois), and can transport up to 650 pounds of letters and packages.

DHL introduced a helicopter service in Los Angeles in 2014 and has been using the service in New York for many years. In addition, a new helicopter service was launched in January in London, UK. The London helicopter enables DHL to offer an enhanced next-day service into the UK capital from major U.S. East Coast cities. With a direct connection from London’s Heathrow Airport to the city’s financial district, DHL can now guarantee overnight delivery of urgent documents for financial and legal shippers in Boston, Chicago and New York.

Top Photo: DHL Express.

Below Video: Starting April 2015, helicopters won’t just be used to report on Chicago’s notorious traffic gridlock; they’ll actually help get international shippers through it. The DHL helicopter, a Bell 206B3 Jet Ranger, can transport up to 650 pounds of letters and packages. Primarily used by financial and legal firms requiring early morning deliveries, DHL Express is the only express delivery company in the U.S. to utilize helicopters.

Below Video: DHL recently brought helicopter service to the London area.

ABX Air to return four Boeing 767-200F freighters to DHL

Air Transport Services Group, Inc. (Wilmington, Ohio) announced its airline subsidiary, ABX Air (Wilmington, Ohio), has received termination notices from DHL affecting four DHL-owned Boeing 767-200 freighter aircraft that ABX Air leases and operates within the U.S. under terms of the Crew, Maintenance and Insurance (CMI) agreement between the companies. DHL sought bids to operate the aircraft from other vendors earlier this year.

The notices are effective in late December 2014 for two aircraft, and in January 2015 for the two remaining aircraft. This reduction in CMI operations for DHL will likely reduce ATSG’s earnings from continuing operations by less than one cent per share in 2015. Excluding those four aircraft, ATSG currently operates 21 freighter aircraft over scheduled routes for DHL, including 17 Boeing 767s and four Boeing 757s.

Related to this announcement, Atlas Air announced it will expand its service for DHL Express’ North American route network using four additional Boeing 767-200 freighter aircraft owned by DHL. Atlas Air expects to start flying the first incremental aircraft in December 2014, and to operate all four by the end of January 2015.

Copyright Photo: Jay Selman/AirlinersGallery.com. ABX Air’s Boeing 767-281 (F) N798AX (msn 23431) arrives in Miami in DHL colors.

ABX Air: AG Slide Show

DHL: AG Slide Show

Atlas Air expands operations for DHL Express

Atlas Air Worldwide Holdings, Inc. (New York) today (August 27) said that its Atlas Air, Inc. (New York) unit will provide expanded operating service for DHL Express’ North American route network using four additional Boeing 767-200 freighter aircraft owned by DHL. Atlas Air expects to start flying the first incremental aircraft in December 2014, and to operate all four by the end of January 2015.

The operation represents a continued expansion of Atlas Air’s non-asset-intensive CMI (Crew, Maintenance and Insurance) service solution, as well as its Boeing 767 platform. With the addition of the aircraft to Atlas Air’s operating certificate, the company’s fleet of Boeing 767s will increase to 15 aircraft, including nine operated for DHL in North America and two for DHL in the Asia-Pacific region.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Atlas Air also operates Boeing 767-300F freighters for DHL. Atlas Air’s Boeing 767-3JHF N644GT (msn 37810) dressed in DHL’s well-known yellow and red livery arrives in Tokyo (Narita).

DHL-Atlas Air: AG Slide Show

Atlas Air: AG Slide Show

Atlas Air Worldwide Holdings reports first quarter net income of $7.9 million, places two Boeing 747-8F freighters with DHL

Atlas Air Worldwide Holdings (Atlas Air and Polar Air Cargo) (New York) reported first quarter net income of $7.9 million, down 60.4 percent from the same quarter a year ago

Atlas Air Worldwide Holdings is the parent company of Atlas Air and Titan Aviation Leasing and majority owner of Polar Air Cargo.

The company issued this full statement:

Atlas Air Worldwide Holdings, Inc. announced adjusted net income attributable to common stockholders of $11.3 million, or $0.45 per diluted share, for the three months ended March 31, 2014, compared with $5.9 million, or $0.22 per diluted share, for the three months ended March 31, 2013.

On a reported basis, net income attributable to common stockholders in the first quarter of 2014 totaled $7.9 million, or $0.32 per diluted share, compared with $20.1 million, or $0.76 per diluted share, in the year-ago quarter.

Adjusted earnings in the first quarter of 2014 exclude a special charge of $3.4 million after tax, or $0.13 per diluted share, mainly related to the company’s U.K. affiliate, Global Supply Systems Limited. Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income.

“2014 is off to a good start, led by the initiatives we’ve undertaken to diversify our business mix, expand our aircraft and service offerings, develop new customers and position Atlas to take advantage of market opportunities,” said William J. Flynn, President and Chief Executive Officer.

“Within our ACMI segment, results benefited from an increase in the number of new 747-8 freighters in operation as well as an increase in flying for our CMI customers. In Dry Leasing, the investments we’ve made since early 2013 in attractive, modern 777 freighters on long-term leases with strong customers drove a significant increase in contribution from sources with highly predictable revenue and earnings streams.

“In addition, the expansion of our 767 aircraft service solutions and our growth into passenger charter operations supported the improvement in our results despite a seasonally soft contribution in Commercial Charter and the continued reduction in AMC Charter cargo volumes.

“Reflecting our global market leadership in outsourced aircraft assets and services, we have developed several new strategic customer relationships since the first quarter of 2013 that have enhanced the resilience of our business model.

“In ACMI, these include Astral Aviation, BST Logistics and Chapman Freeborn. We’ve also expanded with Etihad Airways, introduced new 767 cargo CMI service for DHL Express, and added VIP 767 passenger CMI service for MLW Air. And in Dry Leasing, we now provide 777Fs to Aerologic, Emirates Airlines and TNT Transport International.”

Separately, the company announced the placement of two 747-8 freighters in ACMI service for DHL Express. The state-of-the-art aircraft will provide additional revenue cargo volume for DHL’s transpacific network growth. They replace two 747-400 freighters currently in service for DHL that will enter immediate revenue service for Atlas.

Outlook

We are encouraged by our first-quarter performance and the positive direction of market trends so far in 2014, but we are maintaining our earnings outlook for the full year.

Airfreight volumes are improving, and recent forecasts suggest that airfreight demand will grow by a few percentage points in 2014 – the first real growth after three essentially flat years. Forecast airfreight yields continue to lag behind, however.

With still limited visibility into second-half airfreight market demand and yields, we continue to expect results in 2014 to approximate 2013, excluding an expected decline in our AMC Charter operations as we have previously discussed.

On a per share basis, earnings in the second quarter of this year should be similar to or slightly higher than our adjusted first-quarter earnings. As the majority of our earnings are typically generated in the second half of the year, we expect to update our expectations as the year progresses.

For the full year, we expect total block hours to be a few percentage points lower than 2013 block hours, with more than 70% in ACMI, less than 10% in AMC Charter, and the balance in Commercial Charter. Our Dry Leasing segment should show dramatic growth, with a contribution run rate in subsequent quarters that should be similar to the first quarter of 2014. Aircraft maintenance expense in 2014 should total approximately $175 to $180 million, and depreciation should be approximately $115 to $120 million. In addition, we anticipate an effective income tax rate of approximately 30%.

We remain confident in the resilience of our business model and our ability to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have transformed the company to deliver meaningful earnings in any environment.

Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Atlas Air also operates the Boeing 767-300F freighter for DHL. Boeing 767-3JHF ER N643GT (msn 37809) arrives at Taipei (Taoyuan).

DHL-Atlas Air: AG Slide Show

Atlas Air: AG Slide Show

Polar Air Cargo: AG Slide Show