DHL Supply Chain has won a ten-year logistics contract with Cathay Pacific and Cathay Dragon to handle storage, warehousing and domestic transportation of aircraft service parts at Hong Kong International Airport (HKA).
The contract win comes after DHL won a similar MRO logistics deal with Etihad Airways in Abu Dhabi.
The Cathay contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft.
Cathay Pacific’s director of engineering, Neil Glenn, explained that handing supply-chain operations over to DHL “allows all three parties to concentrate on their specific core capabilities, namely: airline management (Cathay Pacific), aircraft maintenance (HAECO) and, now, DHL will be responsible for the maintenance, repair and overhaul (MRO) supply chain management.”
Meeting Cathay’s needs requires a team of 120 DHL Supply Chain specialists working around the clock, managing more than 90,000 square feet of warehousing space.
The Cathay contract is part of DHL Supply Chain’s push into the aviation sector. The logistics company inked a similar MRO deal last month with Etihad Airways Engineering.
“With Hong Kong taking the lead, we are looking at extending this capability in the Greater China region, particularly mainland China and Taiwan,” said Yin Zou, CEO, DHL Supply Chain Greater China.