DAVID FULLBROOK / SINGAPORE
Carrier shops for medium-capacity freighters in bid to bolster Hong Kong as Asia-Pacific express hub
Cathay Pacific Airways is seeking five medium-sized freighters for Air Hong Kong (AHK) after selling a 30% stake in its cargo subsidiary to DHL Worldwide Express.
The joint venture builds on an arrangement between the two companies on overnight cargo/passenger flights from Hong Kong to Osaka, Seoul, Taipei and Singapore, operational since 2000. Tokyo, served by AHK, was added in July.
The freighters will boost DHL's services to major Asia-Pacific cities from its Hong Kong regional base.
AHK is setting aside $300 million to acquire five freighters by 2004, and another $100 million towards buying "at least" three more aircraft by 2010.
Cathay is understood to be close to concluding a deal for up to 10 medium-capacity freighters, most likely secondhand Airbus A300s.
AHK's fleet shrank to just one Boeing 747-200 and an A300B4 Freighter after Cathay recalled two 747s it was leasing.
DHL's deal with Cathay cements its Hong Kong hub, building on an deal earlier this month with Hong Kong Airport Authority to build an express cargo terminal at Hong Kong International Airport (HKIA), which will open in 2004.
"Since we began operating overnight cargo/passenger flights with Cathay Pacific, we have maintained a close relationship. The joint venture complements our collective vision for consolidating Hong Kong as the key express logistics centre of Asia," says DHL chief executive Uwe Dörken.
Cathay and DHL expect the new venture will carry about 160,000t of cargo annually, equivalent to one sixth of intra-Asian cargo moving through HKIA. This is likely to more than double in the next five years given expected annual growth rates of 15-20%.
Source: Flight International
