Jul 13, 2017: DHL Supply Chain, headquartered in Bonn, Germany has started management of all aircraft maintenance, repair and overhaul logistics activities for Cathay Pacific and Cathay Dragon in the airlines’ home base at Hong Kong International Airport (HKIA), part of a 10-year agreement signed earlier this year.
The agreement 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 to the highest safety and operational standards. DHL Supply Chain will also work with incumbent aircraft maintenance provider HAECO to offer further services including parts inspection and airside operations.
Cathay Pacific Director, Engineering, Neil Glenn, said, "Operational efficiency and quality are imperative to Cathay Pacific. Aircraft maintenance and repairs require constant precision and care, which is supported by the efficient storage, handling and on-demand provisioning of vast numbers of spare parts."
"As such, we are delighted to have engaged DHL Supply Chain as our logistics partner. DHL has an excellent reputation and is tasked to perform safe and efficient supply chain management and handling in extremely complex environments, which adheres to Cathay Pacific’s rigorous compliance requirements and operational standards."
"The arrangement that we now have in place 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," added Glenn.
A team of 120 trained DHL Supply Chain specialists work on a 24x7x365 basis, managing more than 90,000 sq.ft. of warehousing space, processing one million unit of spares transaction per annum, round-the-clock transport delivery, and reporting and governance procedures. Operations started after approval was obtained from the Hong Kong Civil Aviation Department and nearly four months of severe onboarding and training involving DHL Supply Chain, Cathay Pacific and HAECO.
DHL Supply Chain will begin introducing process improvements and implement new supply chain systems within the initial phase of the contract.
"DHL Supply Chain has invested heavily in building up its capabilities to service the aviation industry’s exacting safety and compliance needs. 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. "This new contract is a significant addition to our aviation maintenance, repair, and overhaul capability and contracts for DHL Supply Chain and will only encourage us to deepen our commitment to airlines looking to streamline and strengthen the logistics processes that keep their fleets and returns aloft."
"This new deal makes Cathay Pacific both the top customer for DHL Supply Chain in Hong Kong, as well as a global pioneer in adopting third-party logistics for aviation maintenance, repair and overhaul," said Jez McQueen, Managing Director, DHL Supply Chain Hong Kong and Macau. "We are extremely honored that one of the world’s most respected airlines has turned to us to manage this critical part of the supply chain that ensures the safety of thousands of lives every day. The airline and MRO world is rapidly changing, which means that the supply chain now has a very important role to help organizations meet both their customer promises as well as the financial returns that investors require."