newswatcher
9th Oct 2002, 07:47
From the BBC(9/10):
"Courier firm DHL and airline Cathay Pacific have joined forces to create a regional air cargo powerhouse. Cathay said it would sell a 30% stake in Air Hong Kong, its freight unit, and the two firms plan to invest $300m by 2004.
For DHL, the deal is a leap forward in the Asian market, where it has so far been overshadowed by rivals Fedex and UPS. And both firms see a long-term opportunity in air freight, a market given a recent boost by prolonged closures at US Pacific coast ports.
For Cathay, the deal allows it radically to expand its freight business.
DHL has so far lagged in the Asian market
Air Hong Kong said it would buy at least eight cargo freighters, and will create 700 jobs in the territory. The firm will also leapfrog into the mainland Chinese market, possibly via state-owned Chinese transport giant Sinotrans, a joint-venture partner of DHL.
Also benefiting from the project is Hong Kong's Chek Lap Kok airport, which nurtures ambitions to become a regional freight hub. As part of the deal, DHL is to invest $100m in a new cargo terminal at Chek Lap Kok."
"Courier firm DHL and airline Cathay Pacific have joined forces to create a regional air cargo powerhouse. Cathay said it would sell a 30% stake in Air Hong Kong, its freight unit, and the two firms plan to invest $300m by 2004.
For DHL, the deal is a leap forward in the Asian market, where it has so far been overshadowed by rivals Fedex and UPS. And both firms see a long-term opportunity in air freight, a market given a recent boost by prolonged closures at US Pacific coast ports.
For Cathay, the deal allows it radically to expand its freight business.
DHL has so far lagged in the Asian market
Air Hong Kong said it would buy at least eight cargo freighters, and will create 700 jobs in the territory. The firm will also leapfrog into the mainland Chinese market, possibly via state-owned Chinese transport giant Sinotrans, a joint-venture partner of DHL.
Also benefiting from the project is Hong Kong's Chek Lap Kok airport, which nurtures ambitions to become a regional freight hub. As part of the deal, DHL is to invest $100m in a new cargo terminal at Chek Lap Kok."