Tag: DHL Express

DHL subsidiary to bid for US cargo airline

Astar Air Cargo, a US cargo airline in which DHL Express, the express and logistics subsidiary of German postal service operator Deutsche Post, holds a minority stake, has launched a takeover bid on US rival ABX. Astar is offering USD 7.75 per share in ABX, which puts the value of the company at USD 455m; it is possible that the company may have to up its bid, however, as shares in ABX climbed to USD 8.07 following the announcement of the offer.

ABX was part of US transport company Airborne, which has since been taken over by DHL Express, until 2003; DHL is still virtually the airline’s only customer, representing 95 per cent of turnover. Over 95 per cent of the volume of freight transported by Astar is also for DHL. A spokesperson for Deutsche Post has welcomed the bid, saying that considerable improvements in efficiency are expected.

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'NewCo' cargo airline established by DHL-Lufthansa

LUFTHANSA Cargo and DHL Express will establish a joint cargo carrier, commencing operations from Leipzig Halle airport in 2009.

Project name ‘NewCo’ will operate 10 freighters, most likely Boeing 777F or Boeing 747-400F aircraft. The new airline will fly intercontinental routes to North America, Asia and the Middle East, carrying express shipments and general cargo. The airline will be headed by Lufthansa manager Thomas Papke.

DHL was originally in negotiations with Cargolux and Emirates for such a venture. Insiders expect that personal relations between DHL and Lufthansa managers were key in the tie-up between the two companies. Klaus Zumwinkel, chairman of DHL’s parent company DPWN, is member of Lufthansa’s board of directors while Lufthansa’s former chief executive officer Jürgen Weber has a seat in DPWN’s board of directors.

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Leipzig elevated to hub status for Lufthansa

Lufthansa Cargo will discontinue freighter flights into and out of Cologne from October and transfer flights to Leipzig to coincide with the opening of the DHL Express Europe hub.

DHL Express and Lufthansa Cargo have been jointly operating a route network between Europe, Asia and the USA with their Aerologic intercontinental joint venture since March 2004. Up to 27 October 2007, a major proportion of that network will still be run through Cologne, but then be re-routed through Leipzig from 28 October. Lufthansa will be operating 21 MD-11s flights a week to Leipzig.

There will be no change in the other joint-venture flights:
Brussels – New York – Brussels (five flights weekly)
Frankfurt – East Midlands – Wilmington/Ohio – East Midlands – Frankfurt (once weekly)
East Midlands – Wilmington/Ohio – East Midlands (once weekly)
Additionally, Lufthansa will operate three of its own freighter flights from Leipzig to Atlanta (USA), the Korean capital Seoul and the Turkish capital Istanbul.

Cologne will remain a DHL and Lufthansa Cargo base, but Lufthansa will only be offering capacity ex Cologne in future for cargo carried in the bellies of passenger aircraft or by road feeder services. As a result of the switch to Leipzig, 35 staff will be withdrawn from cargo handling in Cologne and offered posts at other locations.

In 2008, Leipzig is scheduled to become the DHL Express central hub in its European express network.

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DHL gears up for ''soft'' Leipzig hub launch

DHL grows at Leipzig DHL Express will gradually build up flight operations at its new EUR 300 million European air hub at Leipzig over the coming 12 months to ensure a smooth transition from its existing hub in Brussels and to avoid the kind of operational problems that hit the opening of its US hub at Wilmington two years ago.

In July, DHL handling staff from Brussels, Cologne and Britain will test loading and unloading procedures at Leipzig, Achim Zimmermann, Sales Manager West at DHL Express Germany, said in an interview at the Transport Logistic trade fair in Munich. Leipzig will be one of three DHL Express intercontinental air hubs alongside Wilmington and Hong Kong on opening in mid-2008.

DHL Express already operates 14 cargo planes on European overnight flights between Leipzig, the Brussels hub, its Cologne gateway and a number of Central and Eastern European destinations. These services, carrying about 160 tonnes of cargo daily, were moved from Berlin Schoenefeld airport over the last two years. The DHL hub buildings are currently under construction on a 53 hectare area adjoining the extended, 3.6 km southern runway.

In the next phase, about 6-8 flights will be transferred from Cologne to the Leipzig gateway during the third quarter of this year, Zimmermann said. All Cologne flights are scheduled to move to Leipzig by the end of 2007. During the first half of 2008, flights will gradually be transferred from Brussels to Leipzig.

In view of the operational difficulties at the opening of the Wilmington hub in autumn 2005 when two different hubs were merged at one location, DHL Express is taking a more cautious approach this time. “We have a back-up scenario. Cologne and Brussels will remain open as gateways. If there are any problems at Leipzig, we can relocate immediately,” Zimmermann pointed out. “We will always be able to switch in future if there are any problems.”

In particular, DHL Express will be responsible for its own aircraft handling at Leipzig, making it independent of airport staff and creating opportunities for third-party handling contracts, he noted. DHL will also have its own hangar for technical maintenance.

At Leipzig, DHL Express would benefit from the proximity of DHL parcel and freight forwarding facilities, the airport’s close geographical position to emerging markets in Central and Eastern Europe, its good multi-modal infrastructure with motorway connections and a nearby railhead, and the relocation of logistics facilities to the airport’s surrounding area, Zimmermann pointed out.

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DHL named International Express Operator of the Year 2007

DHL was named “International Express Operator of the Year 2007” at this year’s Air Cargo Europe transport logistic industry trade fair, held from June 12 – 15, 2007 at the new Trade Fair Center in Munich. Honoring excellence in the air cargo industry, the first-ever World Air Cargo Awards was sponsored by the Air Cargo Weekly newspaper, a forum for international airfreight professionals.

Voting was administered online via the Air Cargo Weekly website, where readers could nominate industry leaders in a range of award categories, including Cargo Airline of the Year, Airport of the Year and Airfreight Forwarder of the Year. DHL came out on top in the International Express Operator category, as voters were impressed by DHL’s ability to meet performance targets, its level of investment in new products and services, and DHL’s flexibility, innovation and overall “personal touch” when it comes to customer needs and customer service.

The conference is the world’s largest gathering of the international air cargo community, bringing together over 21,000 executives from airlines, airports, freight forwarders, shippers, suppliers and service providers. After this year’s premiere, Air Cargo Weekly plans to sponsor the World Air Cargo Awards annually.

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