Deutsche Post DHL, Air Hong Kong Ink 15-Year Commercial Deal
December 13 2017 - 9:11AM
Dow Jones News
By Marc Navarro Gonzalez
Deutsche Post AG (DPW.XE) said on Wednesday that its logistics
division DHL Express has signed a new 15-year commercial agreement
with Air Hong Kong in a move to support DHL's continued growth in
the Asia Pacific region.
The German postal company said that, as part of the new deal,
DHL will purchase eight A300-600F cargo planes from Air Hong Kong
and lease them back to the carrier.
Air Hong Kong is a joint venture between Cathay Pacific Airways
Ltd. (0293.HK) and DHL. Under the new agreement, the Deutsche Post
division will sell its 40% stake in the carrier to majority-owner
Cathay Pacific, the company said.
The new commercial arrangement is a continuation of DHL's
ongoing collaboration with Air Hong Kong, which started in 2002.
However, Deutsche Post said it allows for greater flexibility in
aircraft deployment and route selection, which will help
consolidate DHL's position in the region and meet continually
strong market demand.
"With Hong Kong's merchandise exports between January and
September 2017 growing by 8.5% compared to last year, we're keenly
aware of the upward momentum that the region's trade lanes are
facing," DHL Express Asia Pacific's Chief Executive Ken Lee
said.
Deutsche Post said the agreement will take effect on Jan. 1
2019.
Neither company disclosed financial details of the new
arrangements.
Write to Marc Navarro Gonzalez at
marc.navarrogonzalez@dowjones.com
(END) Dow Jones Newswires
December 13, 2017 08:56 ET (13:56 GMT)
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