Category Archives: DHL

Ethiopian and DHL Global Forwarding to partner

DHL Global Forwarding, the leading international provider of air, sea and road freight services, and Ethiopian Airlines, the largest aviation group in Africa, have signed a new agreement to form a joint venture company – DHL-Ethiopian Airlines Logistics Services Ltd., to build the Leading Cargo Logistics provider JV company in Africa; the company will be based in Ethiopia and do business in the entire continent of Africa, enhancing Ethiopia’s logistics infrastructure and connections.

Ethiopian Airlines, which assumes a majority stake in this joint venture, will provide regulatory and operational support as DHL Global Forwarding establishes air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world. Pramod Bagalwadi, a DHL veteran with over two decades of experience in management roles within the logistics industry, has been appointed to lead the new organization. This will be an additional portfolio for Pramod, who currently leads the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.

DHL Global Forwarding, the leading international provider of air, sea and road freight services, and Ethiopian Airlines, the largest aviation group in Africa, today signed a new agreement to form a joint venture company – DHL-Ethiopian Airlines Logistics Services Ltd., to build the Leading Cargo Logistics provider JV company in Africa; the company will be based in Ethiopia and do business in the entire continent of Africa, enhancing Ethiopia’s logistics infrastructure and connections.

Ethiopian Airlines, which assumes a majority stake in this joint venture, will provide regulatory and operational support as DHL Global Forwarding establishes air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world. Pramod Bagalwadi, a DHL veteran with over two decades of experience in management roles within the logistics industry, has been appointed to lead the new organization. This will be an additional portfolio for Pramod, who currently leads the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.

Photo: Ethiopian Airlines.

Advertisements

Boeing, DHL Express announce the purchase of 14 Boeing 777 Freighters

Boeing and DHL today announced that the leading international express carrier has placed an order and commitment for 14 Boeing 777 Freighters, and purchase rights for 7 additional freighters.

DHL Express also announced today an order for 14 Boeing 777 Freighters, which also includes options and purchase rights for 7 additional aircraft. The delivery of the first four planes is expected to be completed in 2019.

The $4.7 billion order agreement, at current list prices, was unveiled at the opening of the 2018 Farnborough International Airshow. A portion of the order was previously unidentified on Boeing’s Orders & Deliveries website. When the full order is finalized, it will also appear on the website.

DHL was the first express operator in 2009 to introduce the 777 to perform long-haul time critical services. The aircraft type has proven to be the most reliable large freighter connecting the major markets across the globe, bolstering service quality for DHL’s express customers. The new order will double the size of DHL’s global 777 fleet, allowing more markets and customers to benefit from the uniquely capable aircraft.

“The 777 Freighter is an airplane perfectly suited to DHL’s needs, offering an outstanding payload capability, with incredible range to service its extensive intercontinental network and unmatched reliability,” said Boeing Commercial Airplanes President & CEO Kevin McAllister.

Global air freight demand grew by nearly ten percent last year with demand growth outpacing capacity growth by a factor of three. Expanding cross-border e-commerce sales for instance will grow to $4.48 trillion by 2021, which means a growth of 19.2 per cent per year. DHL’s investment in the 777 Freighters is a direct answer to the growing demand for global express capacity.

As the largest twin-engine cargo airplane in the world, the Boeing 777 Freighter is capable of flying 4,900 nautical miles (9,070 kilometers) with a cargo load of 102 tons.

DHL Express operates over 260 dedicated aircraft with 17 partner airlines on over 600 daily flights across 220 countries.

Photo: Deutsche Post DHL Group. Left to right: Kevin McAllister CEO Boeing Commercial Airplanes, Ihssane Mounir, VP Sales & Marketing The Boeing Company, Dan Abraham, VP Sales Europe Boeing Commercial Airplanes, Ken Allen, CEO DHL Express, Charlie Dobbie, COO DHL Express, Mike Parra, CEO DHL Express Americas

Southern Air returns to Miami with new service to Hong Kong via Anchorage

Airline Color Scheme - Introduced 2002 (DHL)

On April 1, Southern Air (2nd) (Anchorage) will return to Miami and will begin weekly all-cargo service from Miami International Airport to Hong Kong via Anchorage. The new scheduled freighter flights will be served by Boeing 777F aircraft.

Hong Kong is MIA’s fourth-leading trade market in Asia, responsible for more than $500 million in freight annually. In 2017, MIA’s trade with the entire Asia world region was valued at $7.8billion – a 16-percent increase from $6.7 billion in 2016.

Southern Air, a wholly owned subsidiary of Atlas Air Worldwide, Inc., will become the sixth airline at MIA with all-cargo service from Asia, joining: Asiana Airlines (Seoul); Cathay Pacific (Hong Kong); China Airlines (Taipei); Korean Air (Seoul); and Polar Air (Seoul).

Copyright Photo: Southern Air (2nd)-DHL Boeing 777-FZB N714SA (msn 37988) PAE (Nick Dean). Image: 908115.

DHL-Southern Air aircraft slide show:

DHL and Air Hong Kong extend their relationship with a new 15-year agreement, will acquire 8 additional A300-600F freighters

Air Hong Kong-DHL Airbus A300F4-605R B-LDC (msn 857) BKK (Ken Petersen). Image: 911858.

DHL Express, the world’s leading international express services provider, 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.

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 8,000sqm 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% year-on-year for the past decade and already handles more than 40% 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% 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.

Copyright Photo: Air Hong Kong-DHL Airbus A300F4-605R B-LDC (msn 857) BKK (Ken Petersen). Image: 911858.

DHL delivers the first A321 aircraft components for Airbus to Mobile, Alabama

DHL transport first A320 to Mobile

DHL Global Forwarding, Americas, has issued this statement:

DHL logo (LRW)

DHL Global Forwarding, the specialist for air and ocean freight at Deutsche Post DHL Group, shipped the first aircraft components to the newly built U.S. assembly plant in Mobile, Alabama from the Hamburg Finkenwerder Airbus plant in Germany. DHL Industrial Projects developed a multimodal transport concept for the European aircraft manufacturer. From the beginning of June 2015, large components of A320 family as well as 1,000 sea freight containers and additional air freight shipments, also including hazardous goods, crossed the Atlantic. Arriving into port on June 17, DHL transported the aircraft components within a total transit time of 29 days which was of critical importance since configuration and control of the final assembly processes at Airbus depended upon it.Airbus logo (large)

“Our Industrial Projects team created a plan, developed a concept and helped Airbus transport their aircraft components efficiently, effectively, and with no issues.”

“In order to successfully transport highly sensitive cargo, especially across great distances, it is critical to have a solutions-driven team of experts in place,” said Brian Lindholm, global head of business development, DHL Global Forwarding Industrial Projects. “Our Industrial Projects team created a plan, developed a concept and helped Airbus transport their aircraft components efficiently, effectively, and with no issues.”

The five different aircraft components with a maximum weight of thirty tonnes per section were transported on board a chartered ship using special sea transport frames and secured on roll trailers with twist locks. After arriving at the Port of Mobile and clearing Customs, the aircraft components were then loaded onto heavy-duty trailers with special cranes which will be transported a few miles to the new Airbus U.S. assembly plant in Mobile on Sunday, June 21.

For air freight shipments, both LD3 containers and consolidated shipments were used. Special legally required procedures were used for securing and transporting hazardous goods.

After the aircraft components are delivered, the sea transport frames and the air freight containers will be prepared for their return to Finkenwerder.

This is the first time DHL transports major components for Airbus.

DHL is part of Deutsche Post DHL Group.

Top Photo: DHL/Business Wire. The fuselage component for new Airbus A321-231 (msn 6512) for JetBlue Airways was delivered to Mobile, Alabama from Hamburg, Germany. Members of DHL Global Forwarding, Airbus, the International Longshoremen’s Association (Local 14010) and AMP Terminal employees pose in front of the fuselage of the first Airbus A320 aircraft to be assembled at the Airbus U.S. Manufacturing Facility in Mobile, Alabama.

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

Southern Air eliminates all of its long-term debt with a debt-for-equity exchange

Southern Air (2nd) (DHL) (Cincinnati) has issued this statement about its restructuring process:

Southern Air Holdings, Inc. (SAHI) has completed a debt-to-equity exchange that eliminates all of the company’s long-term debt, enabling SAHI to significantly enhance its strategic position and growth plans.

The consensual secured debt-to-preferred equity exchange satisfies approximately $90 million in senior secured term debt by issuing to its former term lenders a new class of preferred stock and warrants. The newly issued preferred stock is non-voting and non-convertible, and provides for an annual stated yield accruing in kind (not in cash), and a liquidation preference over common shares. The exchange transaction was approved by the United States Department of Transportation and by 100% of the participating term loan lenders. In addition to the debt-for-preferred equity exchange, SAHI’s lenders agreed to renew and increase to $20 million a working capital line of credit in favor of various SAHI affiliates.

“The completion of this debt-for-equity exchange sets a new stage for growth in our air cargo platforms,” said SAHI and Worldwide CEO Dan McHugh. “Southern Air now has a clean balance sheet and no long term debt. With positive cash flow, we are poised to grow our existing 777 and 737 programs with global logistics leader DHL Express and other global customers, and in view of the closing of our acquisition of 767 carrier Florida West International Airways (Florida West), Worldwide is strengthening and expanding its highly reliable, cost efficient and customer-oriented ACMI, CMI and other air cargo services.”

Worldwide recently announced its plans to acquire Miami-based Florida West, a U.S. all cargo carrier operating 767 aircraft.

McHugh added, “Our lenders’ willingness to convert all of their term debt to preferred equity demonstrates a firm commitment to SAHI’s management vision, strategic positioning and growth plans, and we greatly appreciate their support in this debt conversion process.”

SAHI was advised in the transaction by the investment banking firm Imperial Capital and the law firm Berger Singerman.

Southern Air currently operates four Boeing 777-200 freighters on an around-the-world basis for the leading global express delivery provider DHL. Southern Air also operates five Boeing 737 aircraft for DHL, flying key routes to support DHL’s North American air networks.

All Boeing 747s have been retired.

 

Copyright Photo: Chris Sands/AirlinersGallery.com. Southern Air now operates five Boeing 737-400 freighters in DHL colors including ex-LOT 737-45D N495SA (msn 27157) at Calgary.

DHL-Southern Air aircraft slide show: AG Airline Slide Show

Southern Air aircraft slide show: AG Airline Slide Show

AG Designed by photographers