Sunday 21st Oct 2018 - Logistics Manager Magazine

DHL signs 15 year deal with Air Hong Kong

DHL is to buy eight A300-600F cargo planes from Air Hong Kong, and lease them back to the carrier under a 15-year block-space agreement to enable the carrier’s overnight air services to continue supporting the DHL Express network until 2033.

As part of the deal, DHL will sell its 40 per cent 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 1st January 2019, replacing Air Hong Kong’s current agreement with DHL when it expires.