Category Archives: DHL

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.

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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

Polar Air Cargo to operate two additional Boeing 747s for DHL Express

Atlas Air Worldwide Holdings, Inc. (New York) today announced the placement of two incremental Boeing 747 freighters into ACMI service with DHL Express.

The two aircraft, a Boeing 747-800F and a 747-400F, will be operated in Polar Air Cargo Worldwide’s express network under an ACMI arrangement for the benefit of DHL Express. Operations are scheduled to begin on October 26, 2014.

When the new ACMI service begins, Polar’s express network will total twelve 747 freighters, consisting of five Boeing 747-800Fs and seven 747-400Fs, in ACMI on behalf of DHL and Polar’s other customers. Atlas also will continue to operate a fleet of Boeing 767 Freighters in CMI service for DHL, with 11 aircraft in operation by the end of January 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N451PA (msn 30809) arrives in Los Angeles.

DHL-Polar Air Cargo: AG Slide Show

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