Tag Archives: DHL Express

AeroLogic adds a new route to Hong Kong

AeroLogic (Leipzig/Halle) on October 26 will add a new weekly cargo route from Frankfurt to Hong Kong via Ashgabat. The return flight will operate nonstop per Airline Route.

The company was established as a joint venture by Deutsche Lufthansa AG and Deutsche Post Beteiligungen Holding AG. The respective companies of the shareholders entrusted Lufthansa Cargo and DHL Express with the operational responsibility.

AeroLogic has its own Air Operator Certificate (AOC), its own traffic rights, and is responsible for all airline operations including aircraft, pilots and network.

The route network includes more than 20 destinations in Europe, in the Middle East, in Asia and North America. During the week, AeroLogic mainly flies to Asia within the express network of DHL Express, and on the weekend to the USA within the network of Lufthansa Cargo respectively.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-FZN D-AALC (msn 36003) taxies at Paine Field in Everett.

AeroLogic: AG Slide Show

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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

DHL transports two giant pandas from Chengdu to Brussels

DHL (UK) 767-300F G-DHLG (02-Pandastic Journey)(Nose) BRU (KCN)(LRW)

DHL today (February 23) sent off two giant pandas from Chengdu to Brussels, using a dedicated DHL Air (UK) (East Midlands) Boeing 767-300 freighter aircraft. Their departure marks the start of a 15-year cooperation of giant panda breeding research between China and Belgium. The female, Hao Hao, and the male, Xing Hui, both aged four, are expected to be delivered via DHL’s global transportation network to their new home at the Pairi Daiza animal sanctuary in Brugelette, Belgium on February 23.

“The Pandastic journey from China Conservation Research Center of the Giant Panda’s Dujiangyan panda base to Belgium’s Pairi Daiza will be a little over 8,000 kilometers. We are extremely proud to be entrusted with transporting China’s friendship messengers. The pandas, Hao Hao and Xing Hui, are without a doubt our VIPs — Very Important Pandas. A DHL team of specialists has worked with panda experts in China and Brussels to research and plan for their journey,” said Jerry Hsu, Chief Executive Officer of DHL Express Asia Pacific.

‘Hao Hao and Xing Hui’s Pandastic Journey’ started at the China Conservation & Research Center for the Giant Panda (CCRCGP) in Chengdu, China at 11:45 am on February 22, and will end with a delivery to a specially constructed Chinese Garden at Pairi Daiza, Belgium the following day. The two giant pandas were flown from China to Belgium on a dedicated DHL B767 freighter aircraft, accompanied by a team of two animal handlers, a veterinary physician and a plentiful supply of 100 kilograms of bamboo.

DHL (DHL Air) 767-300F G-DHLG (02-Pandastic Journey)(Panda) BRU (KCN)(LRW)

The pandas are expected to spend 15 years at Pairi Daiza, a 55-acre garden that plays host to over 5 000 animals. With the support of the University of Ghent, a special breeding and research program has been designed, aimed at helping to avert the future extinction of this endangered species.

To ensure an easy and comfortable journey, DHL and China Conservation & Research Center for the Giant Panda created bespoke travelling crates spacious enough for pandas to stay comfortable throughout the journey. The cages were also designed with a special roof in the style of ancient Chinese architecture.

“The panda is China’s national treasure, and also a messenger of friendship and peace,” said Wu Dongming, Managing Director of DHL-Sinotrans and Executive Vice President of DHL Express Asia-Pacific. “We are deeply honored for having been selected to transport Hao Hao and Xing Hui. With strong transportation expertise and capabilities, we believe DHL will carry out a Pandastic Journey with the utmost care and consideration.”

DHL has supported a number of conservation projects in recent years, including the return of nine silverback gorillas from the UK to the wild in Gabon, the delivery of two rare Sumatran tigers from the Australia and the US to ZSL London Zoo for a breeding program. Last year, DHL also provided expert logistics and both ground and air transportation to relocate several endangered Florida manatees.

Copyright Photos: Karl Cornil/AirlinersGallery.com. The specially-marked Boeing 767-3JHF ER G-DHLG (msn 37807) of DHL Air (UK) arrives at Brussels with the two honored guests.

DHL Air (UK): AG Slide Show

DHL logo

Polar Air Cargo to start nonstop Cincinnati-Tokyo cargo service

Polar Air Cargo Worldwide, Inc. (New York) today confirmed its plans to initiate daily nonstop Boeing 747-400 express freighter service between Cincinnati, Ohio, and Tokyo, Japan, by the end of April 2013.

The new service will complement a daily 747-400 flight from the Japanese industrial city of Nagoya to Cincinnati, facilitating next-day deliveries to the U.S. from all major cities and industrial areas in Japan.

Polar also will double the frequency of its wide-body freighter connections to Australia from two to four days per week. The routing of this service, via Japan, will allow Polar customers such as DHL Express to optimize their intercontinental networks and introduce additional capacity both from the U.S. and from key North Asian markets to Australia. The increase in Polar’s frequencies will be supported by the introduction of two new Boeing 767-300ERF wide-body aircraft.

Copyright Photo: Michael B. Ing. Boeing 747-46NF N453PA (msn 30811) climbs away from Los Angeles.

DHL-Polar Air Cargo: AG Slide Show

Atlas Air Worldwide Holdings reports 4Q adjusted net income is up 23% to $48.7 million, 2012 net income rose 17% to $127.0 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) today announced a 23% increase in adjusted net income attributable to common stockholders for the fourth quarter of 2012, with adjusted net income rising to $48.7 million, or $1.83 per diluted share. For the full year, adjusted net income attributable to common stockholders rose 17% to $127.0 million, or $4.78 per share.

On a reported basis, net income attributable to common stockholders totaled $52.4 million, or $1.97 per diluted share, in the fourth quarter, and $129.9 million, or $4.89 per diluted share, for the year.

Adjusted earnings exclude net gains in the fourth quarter and for the full year that primarily reflected an insurance gain of $0.15 per diluted share related to flood damage at an aircraft parts warehouse during Superstorm Sandy.

Revenues grew 17% to $452.8 million in the fourth quarter and 18% to $1.65 billion for the year. Free cash flow for 2012 totaled $208.5 million.

Fourth-Quarter Results

Revenue and profitability growth in our core ACMI business during the fourth quarter were driven by our new 747-8Fs, which began to enter service late in the fourth quarter of 2011. Volume growth was primarily due to the continued ramp up of CMI flying for Boeing and DHL Express. ACMI results during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments. ACMI customers flew 4.3% above contractual minimums during the quarter.

In AMC Charter, strong growth in our passenger service and rate premiums earned on flying more efficient 747-400 cargo aircraft in the fourth quarter of 2012 compared with less efficient 747-200 aircraft in 2011 partially offset a 48% reduction in cargo block hours and a reduction in the number of one-way AMC missions.

In Commercial Charter, increased revenues and volumes reflected the deployment of 747-400 cargo aircraft in lieu of retired 747-200s, the deployment of an additional 747-400 cargo aircraft to support increased demand in South America, and 747-400 aircraft from ACMI during remarketing periods. Commercial Charter results were affected by a reduction in yields driven by softer charter-market conditions compared with the fourth quarter of 2011, and a reduction in return legs due to fewer one-way AMC Charter missions.

Fourth-quarter results in each segment were affected by increased crew costs, with AMC Charter and Commercial Charter incurring other volume-driven operating expenses and higher aircraft ownership costs related to the deployment of 747-400 aircraft in lieu of 747-200 aircraft.

Unallocated income and expenses during the quarter reflected a pretax insurance gain of $6.3 million (equivalent to $0.15 per fully diluted share on an after-tax basis) related to flood damage incurred at an aircraft parts warehouse during Superstorm Sandy.

Income Taxes

Adjusted and reported earnings for the fourth quarter of 2012 included an effective income tax rate of 35.9%, reflecting an adjustment to reserves related to U.S. federal income tax benefits claimed in prior periods that totaled $0.06 per fully diluted share.

Adjusted and reported earnings for the full year of 2012 included an effective income tax rate of 36.8%, relating to the adjustment to U.S. federal income tax reserves and the settlement of income tax examinations in Hong Kong that totaled $0.09 per fully diluted share.

Cash, Cash Equivalents and Short-Term Investments

At December 31, 2012, our cash, cash equivalents and short-term investments totaled $419.9 million, compared with $195.2 million at December 31, 2011.

The growth in cash, cash equivalents and short-term investments in 2012 was primarily driven by an increase in cash provided by operating and financing activities, partially offset by an increase in cash used for investing activities.

Net cash used for investing activities in 2012 primarily related to the purchase of four 747-8F aircraft for our ACMI operations, a third 767-300ER passenger aircraft for our AMC Charter operations, and a 737-300 cargo aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the delivery of the four 747-8Fs. These proceeds were partially offset by payments on debt obligations and debt issuance costs. Both the proceeds from our issuance of debt and the payments on our debt obligations reflect the refinancing of a total of $571 million of floating-rate term loans with fixed-rate notes issued in the capital markets.

Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas Air) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar Air Cargo). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.

Top Copyright Photo: Michael B. Ing. Boeing 747-47UF N492MC (msn 29253) climbs away from Bangkok while operating for QANTAS Airways.

Atlas Air: AG Slide Show

Polar Air Cargo: AG Slide Show

Bottom Copyright Photo: Michael B. Ing. Boeing 747-47UF N416MC (msn 32838) of Polar Air Cargo in DHL colors climbs away from Los Angeles International Airport.