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Name: DHL EXPRESS
7JetSet7 Code: DHA
Status: Operational
Region: LATIN AMERICA
City: PANAMA CITY
Country: PANAMA
Employees 180
Web: dhl.com
Email: aviation@pty-co.pa.dhl.com
Telephone: +507 238 2000
Fax: +507 238 2001
Sita: PTYSNER
Background
(definitions)

Click below for data links:
DHA-SEP04

ESTABLISHED AND STARTED OPERATIONS IN 1996. SUBSIDIARY OF (DHL). A K A "(DHL) AERO EXPRESO" (PANAMA OPERATION). SCHEDULED & CHARTER, CARGO, JET AIRPLANE SERVICES.

ADDRESS:
PO BOX 11491
PANAMA 6, PANAMA

ADDRESS:
APARTADO AEREO 11491
PANAMA CITY 6, (PANAMA), REPUBLIC OF PANAMA

PANAMA (REPUBLIC OF PANAMA) WAS ESTABLISHED IN 1903 AND COVERS AN AREA OF 77,082 SQ KM. IT HAS A POPULATION OF 2.6 MILLION. THE OFFICIAL LANGUAGE IS SPANISH. THE CAPITAL IS PANAMA CITY.

MAIN BASE: PANAMA CITY (TOCUMEN INTERNATIONAL) AIRPORT (PTY).

SITA: PTYSNER.

(DHL) DE GUATEMALA (GUATEMALA OPERATION):

(TELEPHONE: +502 3 346 675). (FAX: +502 379 1199).

FEBRUARY 1999: OWNERS/SHAREHOLDERS: FELIX PICARDI (51%); DHL WORLDWIDE EXPRESS (49%).

BASES AT GUATEMALA CITY, AND PANAMA CITY. REGIONAL MAINTENANCE BASE AT FORT LAUDERDALE.

"D" MAINTENANCE CHECK ON 727-100 (303) AT COOPESA (COO) MAY RESULT IN RETIREMENT OF AIRPLANE.

MARCH 1999: RENE GONZALEZ, MANAGER QUALITY CONTROL, ALSO ACTING MANAGER MAINTENANCE, REPLACING MIGUEL COBA.

MAY 1999: 727-35F PARTED OUT (19166, TG-DHP).

MAY 2000: SITA: STYSNER.

CHANGED NAME TO "(DHL) AERO ESPRESO."

2 727-264'S (950-20709, /73 61 51, N624DH; 86-80, /73 57 48, 5), (DHL) LEASED.

JULY 2000: JOINS FORCES WITH LUFTHANSA CARGO (LUB), FOR CENTRAL AMERICA.

MARCH 2001: 1 ATR 42-300 (052) FOR (DHA) GUATEMALA.

MAY 2001: (DHL) PERU REPORTED +27% INCREASE IN SALES, FOR 1ST 4 MONTHS, AS A RESULT OF DIVERSIFICATION OF PRODUCTS, AND HIGHER MARKET SHARE IN IMPORTED CARGO, AND PARCELS. GOAL FOR 2001 IS TO INCREASE FROM $17 MILLION TO $20 MILLION. (DHL) IS TRIPLING ITS FACILITIES IN PANAMA, AND VENEZUELA, TO KEEP UP WITH MARKET NEEDS. INVESTS $8 MILLION IN NEW, 10,000 SQ M HQ, IN VENEZUELA.

JUNE 2001: (DHL) DE GUATEMALA, PUTS ITS 1ST ATR 42F INTO SERVICE,
LINKING GUATEMALA, VENZUELA, AND THE CARIBBEAN.

December 2002: 757-236 (33184, G-BIKM), ex-BRITISH AIRWAYS (BAB) for (DHL) UK.

September 2003: 727-2Q4F (22424, OO-DHZ), European Aviation (EPT) wet-leased.

November 2004: (DHL) European Air Transport (EPT)'s Central European hub will be located at Leipzig/Halle from 2008, Deutsche Post World Net announced.

(DHL) will acquire a 68% stake in Blue Dart (BDA) for EUR 128 Million. Following the acquisition (BDA) will be managed as a standalone company under the leadership of the existing management.

May 2005: 175 employees (including 35 Flight Crew (FC)).

June 2006: (DHL) signed a long-term "strategic network alliance" with Malaysian cargo carrier Transmile (TML). (DHL) recently spent $1.3 million upgrading its facility at Subang, and now will offer 10 weekly flights from the airport to its main Asia/Pacific hub in Hong Kong aboard Transmile (TML) airplanes. It previously reserved block space for cargo on Transmile (TML) flights, but said the expanded agreement will allow for more regular service and cut delivery time for Malaysian customers by a half-day for shipments to other countries in Asia, Europe and the USA West Coast.

The initial 5-year agreement will allow (DHL) the flexibility to add new air services or upgrade existing service offerings to its customers.

Through the partnership, both parties will work closely on the strategic development of both intra-Asia and inter-continental air services, to meet the booming trade within the region and beyond. According to the World Trade Organization (WTO) International Trade Statistics 2005, intra-Asia trade in 2004 totaled US$1.2 trillion. In terms of intra-continental trade, this is second only to intra-Europe trade. Trade between Asia and Europe was worth about US$725 billion, while trade between Asia and North America recorded US$782 billion.

(DHL) has invested US$1.6 billion in Asia Pacific in the last few years to strengthen its network infrastructure, to meet the evolving demands of customers.

July 2006: (DHL) Aero Expreso (DHA) operates scheduled cargo services between Panama City and other Central American cities and Miami on behalf of (DHL) and also charter flights for 3rd parties.

Employees = 180 (including 36 Flight Crew (FC); & 26 Maintenance Technicians (MT)).

(IATA) Code: D5 - 992. (ICAO) Code: DAE.

Parent organization/shareholders: Felix Picardi (51%); & DHL Express (49%).

Main Base: Panama City Tocumen International Airport (PTY).

International, freight destinations: Aruba; Curacao; Guatemala City; Miami; & San Jose.

A German court ruled that the government was partly liable in the 2002 midair collision between a (DHL) (DHK) 757F freighter and a (BAL) Bashkirian Airlines Tu-154M that killed 71 people, as the government had granted Swiss Air Traffic Control (ATC) firm Skyguide control over a portion of German airspace, according to press reports. The court has yet to decide how much compensation is due Bashkirian (BAL), which reportedly is seeking $3.3 million. Other civil lawsuits are pending.

August 2006: (DHL) signed a multi-million-dollar, 2-year agreement with Electrolux, a leading producer of powered appliances, to serve as the company's exclusive global air express services provider.

May 2008: (DHL) - European Air Transport (EPT) opened its new €300 million/$473 million European airfreight hub at Leipzig/Halle, officially relocating its air operations base from Brussels. The new hub "is situated at a crossroads to provide direct North - South and East - West access to Europe and connects both established and emerging markets in Central and Eastern Europe and Asia," (EPT) said, adding that it has "comprehensive authorization for night-time flights" at the airport. It will employ 2,000 initially and expects that to rise to 3,500 by 2012.

(DHL) unveiled a $2 billion restructuring of its loss-making USA express business that includes shifting its air lift capacity in the market to rival (UPS), a potentially devastating blow to (ABX) Air and Astar Air Cargo (DHL), which currently provide the German express giant's USA lift. Parent, Deutsche Post World Net (DPWN) said it no longer can tolerate massive annual losses in (DHL)'s USA business, which it estimates will post negative (EBIT) of -$1.3 billion in 2008. While (DHL)'s signature yellow ground delivery vehicles still will operate in the USA, its airport-to-airport flying will be handled by (UPS) Airlines, beginning later this year, (DPWN) said. Additionally, it will close 34% of its package sorting facilities, particularly those in smaller markets, relinquishing blanket USA coverage in favor of higher-yield major markets. The USA restructuring is expected to generate cost savings of -$800 million in 2010 and around -$1 billion annually going forward from 2011, (DPWN) said. A finalized (DHL)-(UPS) contract will be signed later this year, the companies said.

The fate of (ABX) and Astar (DHL) is unclear, but (DHL) air hub activities presumably will be shifted from Wilmington, Ohio, to Louisville, where (UPS)'s WorldPort sorting facility is undergoing a $1 billion expansion to be completed in 2010.

(ABX) President & (CEO) Joe Hete said (DHL) has informed it that (UPS) likely will take over "substantially all of the services that (ABX) Air currently provides to (DHL)," adding: "We are disappointed that (DHL) has chosen not to pursue alternative means to improve its competitive position in the USA." (ABX) generates about 75% of its revenue from (DHL) operations. Astar (DHL) did not comment.

The (DHL) - (UPS) announcement marks a stark contrast from 2004, when (DHL) entered the USA market, following a lengthy regulatory battle in which (DPWN) and (UPS) exchanged heated public barbs. (DHL) has been unable to gain >6% share of the USA express delivery market. (DPWN) (CEO) Frank Appel said it was time to take "a more pragmatic approach to be a smarter player in the challenging USA express market."

(UPS) said the contract with (DHL) is expected to last 10 years and will produce up to $1 billion in annual revenue. The deal, however, is not a cease-and-desist between the longtime global rivals, (COO) David Abney said, explaining that it "would be a relatively straightforward air lift agreement and that (UPS) and (DHL) will continue to compete."

August 2008: DHL Express appointed Jose Pereira as VP Technical Strategy & Services, Air Fleet Management.

November 2008: Deutsche Post AG will close all of its (DHL) Express service centers, cut -9,500 jobs in the USA and eliminate USA-only domestic shipping by land and air, the company said, citing heavy losses and fierce competition. The Bonn-based company said that new round of cuts are on top of another -5,400 job cuts it already announced, and blamed heavy losses at the unit, which competes with rivals (UPS) Inc and FedEx (FED) Corp. The cuts are part of a wider plan to curtail operations in the USA, including domestic ground and delivery services, though its international shipping won't be affected. The express unit currently employs some 18,000 workers. Part of the plan calls for the halt to domestic shipping by January 30, the company said after it closes all of its ground hubs.

"The retained USA international express network with a total of 3,000 to 4,000 employees will be tailored to the needs of the group's international express service customers," the company said in a statement. "All international shipments into the USA will still be delivered, while 99 percent of the outbound shipments will be picked up." The move is expected to reduce operating costs at the USA Express unit from $5.4 billion/4.2 billion euros to <$1 billion/770 million euros. "The international express offering in the USA will be maintained on today's levels and the region will remain an integral part of (DHL)'s global Express network," the company added.

Shares of Deutsche Post were up +4.2% at 9.77 euros/$12.60 in Frankfurt trading.

Later, (DHL) pulled the plug on its 5-year push to become the "third alternative" to (UPS) and FedEx (FED) in the USA express shipping market, announcing that all domestic USA services will cease early next year, as it focuses exclusively on international operations to/from 15 - 20 USA metropolitan areas. "The basic reason is that the USA is a highly concentrated duopoly market and the reality is (UPS) and FedEx (FED)'s scale, market reach and brand awareness have made it impossible for us to make it economically viable," DHL Express (CEO) John Mullen told reporters in a conference call.

Mullen estimated that DHL lost around -$10 billion over the last 5 years on its USA venture, including its original investment in purchasing Airborne Express (ABX) and its Wilmington, Ohio, air hub. The company estimates it lost about -$1.3 billion annually on USA operations, "a level of loss that cannot be sustained," he said. He explained that Airborne (ABX) was a "small niche player of low quality," and despite (DHL)'s best efforts, it "never became big enough and never had enough reach to be able to compete with the two incumbents." (DHL) is "more than willing" to donate the Wilmington airport to the state of Ohio, he added.

The German delivery giant still is conducting negotiations with (UPS) to turn over the domestic line-haul flight portion of its international shipments to/from the USA to its rival. But the volume carried by (UPS) will be far lower than what originally was envisioned when the two announced their intent last spring to negotiate an agreement under which (UPS) would take over DHL's US air lift from (ABX) Air and Astar Air Cargo (DHL), dropping from about 1.2 million daily shipments to 100,000.

Mullen said he hoped the DHL-(UPS) deal will be finalized by year end. Total job losses at (ABX), Astar (DHL) and DHL owing to the domestic services shutdown are expected to top -9,500. Those cuts are in addition to -5,400 DHL USA jobs already slashed this year.

(DHL) envisions operating international flights into 5 USA gateways, likely including New York, Los Angeles and Louisville, and using line-haul contract flights operated by (UPS) Airlines to reach 15 to 20 markets that cover about 80% to 90% of its international shipping in the USA. It will contract smaller cargo operators to reach the remaining 10% to 20%, Mullen said. (DHL) generates about $4.5 billion annually in USA revenue, about $1 billion of which comes from international services.

February 2010: The European Commission (EC) said it issued charges against "a number of companies concerning their alleged participation in price-fixing cartels in the airfreight forwarding business" and major air cargo players including (UPS) and (DHL) confirmed they were included. Other companies confirming receipt of a formal "statement of objections" from the (EC) included Panalpina, Kuehne & Nagel, and (DSV).

(DHL) claimed it has been granted immunity by the (EC) in exchange for cooperating with the probe. (UPS) said it would "vigorously defend ourselves in this proceeding against any allegations of wrongdoing."

The (EC), the USA Department of Justice and other regulators around the world have been probing price-fixing in the air cargo industry for several years and a host of carriers have pled or been found guilty and paid fines. The (EC)'s latest charges appear to open a new front by implicating the forwarding side of the business.

"The (EC) is investigating allegations that these companies fixed prices by colluding on the imposition, level, timing and application of various surcharges," the (EC) said. "The allegations concern four separate infringements involving the provision of freight forwarding services from the UK to outside the [European Economic Area (EEA)], from the (EEA) to the USA, from China to the (EEA), and from southern China/Hong Kong to the (EEA)."

Companies receiving a statement of objections can reply in writing or request an oral hearing. The (EC) emphasized that the issuing of formal charges does not "prejudge" whether findings of guilt will be rendered.

May 2010: 757-27AF (29611, HP-1810DAE), ex-(EVA)/(FAT), Aerolease leased.

September 2010: 757-27AF (29607, N644AL), Aerolease leased.

September 2011: DHL Express (DHA) launched Cincinnati - Panama 757F service.

July 2012: (DHL) opened a $175 million hub at Shanghai Pudong airport (PVG) and said it would invest another $132 million over the next 2 years to enable it to dedicate eight additional freighter airplanes to (PVG) for flights to north Asia, Europe and the USA.

The new (PVG) express cargo facility spans 88,000 sq m and can process up to 20,000 documents and 20,000 parcels per hour. The German delivery giant already operates Asian hubs in Hong Kong, Bangkok and Singapore.

The planned new flights from (PVG), to be implemented by 2014, will be operated by Aerologic (AGC), DHL Air UK (DHK) and Atlas Air Worldwide Holdings (AAWH) subsidiary, Polar Air Cargo (PAO). “There will be a variety of other providers as well,” (DHL) said.

(DHL) currently operates cargo flights from (PVG) to Hong Kong, destinations in Japan, Leipzig and Cincinnati. Later this year it plans to start new flights from the airport to Seoul Incheon, Taipei, Dalian and Qingdao. “Beijing and Xiamen [are] likely to come on stream in 2013,” it said.

September 2016: 757-26DF (24471, N588GT) leased and operated from (DHL).

Fleet:
(definitions)

December 2016:

1 727-35F (JT8D) (325-19167, /66 YV-846C), EX-(NAL)/(ICC), (EPT) LSD. FREIGHTER.

1 727-2Q4F (JT8D-17R HK) (1683-22424, /80 HP-1710DAE), (EPT) WET-LSD 2003-09. FREIGHTER.

2 727-264F (JT8D-17R HK) (950-20709, /73 HP-1510DAE; 986-20780, /73 HP-1610DAE), EX-(CAL)/(MCR)/(DHL), (DHA) OPS. FREIGHTER.

1 727-264F (JT8D-17R HK) (1047-20894, /74 HP1310DAE "EL GATO"), EX-(CMA)/(AGJ), (EPT) LSD. FREIGHTER.

1 757-26DF (24471, N588GT), (DHL) LSD & OPERATIONS. FREIGHTER.

3 757-27AF (PW2037) (832-29607, /98 HP-1910DAE, 2010-09; 904-29610, N645AL, 2010-11; 910-29611, /00 HP-1810DAE, 2010-05), EX-(FAT), AEROLEASE LEASED. FREIGHTER. 35C, 154Y.

1 ATR 42-300 (052), FOR (DHA) GUATEMALA OPS 2001-03

1 FAIRCHILD DORNIER METRO III.

Management:
(definitions)

FRANK APPEL, CHIEF EXECUTIVE OFFICER (CEO), PARENT, DEUTSCHE POST WORLD NET.

FELIX PICARDI, PRESIDENT (& MAJOR SHAREHOLDER).

NEIL FERGUSON, (CEO).

ENRIQUE SALAZAR, GENERAL MANAGER (GUATEMALA).

STEVE GETZLER, (CENAM) & PANAMA GENERAL MANAGER (PANAMA).

IVETTE TOWNSHEND, (CENAM) & PANAMA (GFS) MANAGER.

NORMAN BEAUFORD, FINANCE MANAGER.

AUGUSTO VILLALAZ, FLIGHT OPERATIONS MANAGER/CHIEF PILOT.

RODOLFO PAREDES, CHIEF PILOT.

ENRIQUE SALAZAR, (CEO) (DHL) DE GUATEMALA.

LUIS GRUDENA, (CEO) (DHL) ECUADOR.

ALVARO BARRENECHEA, (CEO) (PERU).

ALLAN BAIRD, NETWORK MAINTENANCE MANAGER (FORT LAUDERDALE),
(abaird@fll-ro.dhl.com).

CARLOS GAMUNDI, NETWORK AVIATION MANAGER (FORT LAUDERDALE)
(cgamundi@fll-ro.dhl.com).

JORGE COLOMA, MANAGER MAINTENANCE (GUATEMALA).

FREDDIE MUNOZ, MANAGER QUALITY CONTROL (QC) (GUATEMALA) (2000-04).

RENE GONZALEZ, MANAGER QUALITY CONTROL (QC) (PANAMA) (1999-03).

RAMON ORTEGA, MANAGER MAINTENANCE (PANAMA) (1999-10).

MS CAROLINE AVENDIANO, MANAGER TECHNICAL PUBLICATIONS (2000-04).

RHENNE VAXQUEZ, MAINTENANCE MANAGER (VENEZUELA) (2000-04).
(QC) MANAGER (VENEZUELA) (2000-04).

 
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