ABX adds flights in Asian market
ABX Air Inc. and cargo delivery competitors including FedEx Corp. and DHL are hustling to expand their services in fast-growing Pacific and Asian markets to boost revenues and win their share of future business.
The companies are buying aircraft, or even competitors that already operate in Asia, to serve lucrative U.S.-Asia or intra-Asian routes. The focus is on freight hauled in containers aboard cargo aircraft, either with international or intra-continent range.
Wilmington-based ABX Air has begun a two-year agreement to support Asian cargo operations of All Nippon Airways Co. (ANA) of Japan. ABX has deployed two Boeing 767 freighters, and recently flew its first cargo flight for ANA from Osaka, Japan, to Dalian, China. ABX expects annual revenue of USD 22 million from its agreement to support All Nippon Airways.
ABX also said last week that it will spend USD 23 million to buy a Boeing 767-200 long-range aircraft from Air China Ltd. for international cargo service.
FedEx, the company that pioneered overnight delivery of small packages in the United States, has begun next-business-day delivery service available to customers throughout China. FedEx also spent USD 400 million to buy the DTW Group’s domestic express network in China and DTW’s 50 percent share of an express delivery joint venture with FedEx.
U.S. delivery companies also are competing for business in Korea, Taiwan, Hong Kong, Vietnam, Singapore and Malaysia.
In June, DHL said it bought a 49 percent interest in ASTAR Air Cargo, a Florida-based airline that operates out of DHL’s Wilmington hub and serves customers in the United States, Europe and the Middle East. DHL also invested in Polar Air Cargo Inc. of Purchase, N.Y., to improve express delivery service from the United States to Asia.
