DHL Express has entered into a Crew and Maintenance agreement (CM) with Singapore Airlines (SIA) to deploy five Boeing 777 freighters marking a further step in the expansion of its intercontinental air network.
The deal is also targeted at meeting customer demand in the fast-growing international express shipping markets.
from left: Ken Lee, CEO DHL Express Asia Pacific, Lee Lik Hsin, Executive Vice President Commercial at Singapore Airlines
Strong transpacific demand
"With the deployment of five Boeing 777 freighters, we can expand our express service linking the Asia Pacific region with the Americas," said Travis Cobb, EVP global network operations and aviation at DHL Express.
"Following the pandemic, we see good prospects for strong growth in trans-Pacific trade lanes. By collaborating with Singapore Airlines, we see a unique chance to establish a long-lasting relationship with a long-time partner who shares common values and operates at the highest standard," Cobb added.
Based at Singapore's Changi Airport and serving DHL's South Asia Hub there, the freighters, which will sport a dual DHL-SIA livery, will be operated by SIA pilots on routes to the US via points in North Asia. SIA will also oversee the maintenance of these aircraft.
The initial agreement is set for more than four years with the opportunity for an extension. As part of the agreement, the first aircraft delivery will be in July 2022, with the second in October 2022. The remaining three aircraft are planned for delivery throughout 2023.
"Today's agreement builds on and strengthens the long-standing partnership between SIA and DHL. This new freighter operation will support the fast-growing e-commerce segment, in addition to other key business segments that rely on trusted express services that DHL excels in providing," Lee Lik Hsin, executive vice president commercial, SIA, said.
"It also provides a foundation on which the partnership between SIA and DHL can be further expanded in the future. Basing these freighters at Changi Airport will further reinforce Singapore’s position as a key air cargo and e-commerce logistics hub, contributing to its growth and development."
Ken Lee, CEO of DHL Express Asia Pacific said this new agreement guarantees capacity on DHL's "critical routes out of Singapore as we gear up for ongoing growth in Asia Pacific trade."
"It gives us greater flexibility to add new routes and optimize our aircraft utilization in the face of unpredictable changes or sudden increases in demand," Lee added.
DHL Express noted that it continuously invests to meet steady growth in cross-border time-sensitive shipments. It operates over 320 dedicated aircraft across its global network of 220 countries and territories.
It said the Boeing 777 freighters are the "world's largest, longest range, and most capable twin-engine freighters that also contribute to DHL's sustainability goals, reducing CO2 emissions by 18% compared to the legacy B747-400s."
Meanwhile, SIA's cargo division operates to more than 90 destinations as part of its current network, which includes a fleet of freighters as well as the bellyhold space of the SIA and Scoot passenger aircraft.
The airline recently ordered Airbus A350F freighters as part of its fleet renewal program and continues to invest in its cargo capabilities, capitalizing on healthy demand fueled by growth in e-commerce, fresh produce, and pharmaceuticals, among other segments.
