DHL restructures European air networks due to Brexit
DHL Express is restructuring its European air network management in a series of changes that have been prompted by Brexit – which leaves UK-registered cargo airlines such as DHL Air UK unable to operate intra-EU cargo flights from the start of next year.
Under the changes, a new Austria-registered airline will take over operating intra-EU cargo flights from DHL Air UK, which will evolve into more of an intercontinental carrier. DHL Air Austria will take over operating 18 of DHL Air UK’s B757 freighters, with five remaining on the UK register to operate UK domestic and UK-EU flights.
However, the changes are understood to be principally administrative and legal, with no changes expected initially to operational flight plans or hub infrastructure plans, and the group’s hub and gateway network staying as it is currently, Lloyd’s Loading List understands.
Explaining the restructure, DHL said it was “in the process of filing applications with the Austrian authorities. Subject to approval of those applications, the aim is for the new airline to be established and operational later this year. It will operate intra-European flight services, using a fleet of B757 freighter aircraft which are to be transferred from DHL Air UK.
“In turn, DHL Air UK will develop into its new role as an intercontinental airline, expanding its B767 operations and adding new B777Fs into its fleet.”
DHL Express said the steps “will strengthen its air network platform, ensuring flexible and resilient air cargo capacity to support its customers’ increasing express shipping needs”.
Roy Hughes, EVP Network Operations Europe at DHL Express, commented: “By expanding our airline platform, we are not just adapting to changing regulations, but also preparing our European network for further growth. To meet the high demand of our customers for cross-border Express deliveries we take these measures to continue providing them with sufficient Express capacity.
“With the planned structure, we will achieve both, a flexible and even more resilient airline network in Europe and a better global integration by increasing our intercontinental flights.”
Explaining what was meant by “adapting to changing regulations”, DHL told Lloyd’s Loading List that this referred to the new Air Services Agreement (ASA) between the UK and the EU as part of the UK leaving the EU, which means that every UK airline is now considered a Third Country Operator – meaning UK-based airlines are not permitted to operate intra-EU flights from 2022.
DHL said this was one of the reasons for the changes, with a second being significant growth expectations requiring network expansion.
DHL Express recently reported its strongest quarter in its over 50-year company history. Driven by the worldwide e-commerce boom, the company was able to increase the volume of its Time Definite International (TDI) shipments by more than 25% compared to the first quarter of 2020. “Looking forward, further e-commerce growth is expected due to accelerating digitalisation of the B2B sector and a significant increase of business purchases on online platforms, resulting in boosting demand for international express shipments,” DHL said.
“To respond to this growth and to continue offering its customers fastest transit times for their cross-border deliveries, DHL Express is remodeling its East Midlands based airline, DHL Air UK. Focusing on intercontinental services, DHL Air UK will increase flights between the UK, the Americas region and Asia. In this context, the fleet will be expanded by adding more B767s and introducing new B777F aircraft. The plan is for DHL Air UK to commence its B777 operations in early 2022.”
Tom Mackle, managing director at DHL Air UK, commented: “The United Kingdom has always been a crucial gateway to the world. With an increasing demand in international time definite deliveries this is today more valid than ever.
“The expansion of our intercontinental Express fleet in the UK by adding new B777s, the most modern and efficient freight aircraft, underlines our engagement and our commitment to meet changing customer needs, to continuously deliver excellent services and to also improve our carbon emissions footprint.”
DHL said that having a second intercontinental airline based in Europe – DHL Air UK and Aerologic – would also improve the resilience of its operations in the event of any unexpected disruptions, giving more contingency options.
The company said the new roadmap for the future set-up of its European aviation network represented a new milestone of the group’s Strategy 2025, making way “for continued growing demand for DHL Express’ international services”.