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Name: DHL MIDDLE EAST - SNAS AVIATION
7JetSet7 Code: DHX
Status: Operational
Region: MIDDLE EAST
City: MANAMA
Country: BAHRAIN
Employees 80
Web: dhl.com
Email: steve.wilks@dhl.com
Telephone: +973 1732 2640
Fax: +973 1733 3852
Sita: BAHOWER
Background
(definitions)

Click below for data links:
DHX-2016-02.jpg
DHX-INCDT-NOV03
DHX-INCDT-NOV03-A
DHX-INCDT-NOV03-B
DHX-INCDT-NOV03-C
DHX-INCDT-NOV03-D
DHX-INCDT-NOV03-E
DHX-MAR05-A

Established and started operations in 1979. A K A Saudi National Air Services (SNAS) Aviation. Joint operations with (DHL) International Aviation Middle East. Scheduled & charter, regional & international, cargo, jet airplane services.

Address:
PO Box 5741
Manama, Bahrain

Address:
PO Box 22199
Riyadh 11495, Saudi Arabia

BAHRAIN IS AN ARCHIPELEGO OF 32 SPECKS AND ONE LARGE ISLAND. BAHRAIN IS AN OUTPOST FOR MANY MULTINATIONAL FIRMS; IT PROSPERS BY PROCESSING CRUDE OIL RATHER THAN DRILLING FOR IT. AMONG THE MOST LIBERAL STATES, IT VOTED IN 2001 TO MAKE THE KINGDOM A CONSTITUTIONAL MONARCHY BY 2004. IT IS POPULAR WITH VACATIONING SAUDIS AND KUWAITIS.

The Kingdom of Bahrain was established in 1783, it covers an area of 695 sq km, its population is 670,000, its capital city is Manama, and its official language is Arabic.

April 1979: Began operating scheduled cargo services between Bahrain and Riyadh.

April 2002: (http://www.dhl.com).

Owners/Shareholders: Deutsche Post (51%); Lufthansa (DLH) (25%); (DHL) Worldwide Express (18%); JAL (6%).

November 2003: INCDT: (DHL) (DHK)/(EPT) A300B4-203F (093, OO-DLL) was hit by an SA-7 missile while passing 8,000ft, 6nm after takeoff from Baghdad. The missile impacted with the leading edge slat, resulting in the loss of some hydraulics and a fire. After returning, 3 circuits of the airport were made while the landing gear was deployed and the airplane overran on landing because of the lack of brakes. The 3 crew members (FC) were OK and unharmed.

July 2004: (DHL)-European Air Transport (EPT) will decide before end of 2004 to maintain its hub at Brussels or relocate to the all-cargo Vatry Airport in France or Leipzig in Germany. The relocation of (EPT)'s Brussels hub would include relocation of its Brussels-based airline European Air Transport - (EAT) (EPT). Speculation has grown over the past months that (EPT) might leave Brussels as pressure mounts to introduce a night flight ban there. "The fact of having to deal with different regional authorities as well as the federal government has not helped the cause" stated John Hogan (CEO), UK & Ireland.

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.

August 2005: (ICAO) Code: RSE (Callsign - RED SEA).

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 2nd 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.

(DHL) opened an expanded facility in Denpasar's cargo terminal, consolidating its sales, service, warehousing and administration functions under one roof and extending cut-off times for shipments.

July 2006: Employees = 80.

A German court ruled that the government was partly liable in the 2002 midair collision between a (DHK)/(EPT) 757 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, which reportedly is seeking $3.3 million. Other civil lawsuits are pending.

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

(DHL) will increase its capacity into New York (JFK) by 8 tons per day with new 2x-daily flights from Hong Kong, and daily flights from Bangkok, Singapore, and Taipei.

April 2007: (DHL)-European Air Transport (EPT) is ramping up operations at Leipzig/Halle (LEJ), to which it started flying in 2005, and intends to turn it into a European hub with an investment of €300 million. It currently operates 14x-daily frequencies at (LEJ), most recently to Hamburg and Ljubljana, and handles approximately 160 tons of freight per day. Next year, it plans to land 50 airplanes at the airport each night. It said the expansion will create around +3,500 jobs by 2012.

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 more than a 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.

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) Corporation. 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," (DHL) 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 "3rd 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 said.

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.

(DHL), 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.

July 2009: (DHL) International Aviation ME (DHX) operates scheduled and non-scheduled cargo jet airplane services jointly with (SNAS) Aviation (DHX), Saudi Arabia, throughout the Middle East, on behalf of (DHL) Express.

(IATA) Code: ES - 155. (ICAO) Code: DHX (Callsign - DILMUN).

SITA: BAHOWER.

Parent organization/shareholders: Deutsche Post (100%).

Owns: (DHL)-Sinotrans (50%); Vensecar International (49%); & Air Hong Kong (AHK) (40%).

Alliances: Saudi National Air Services (SNAS) Aviation.

(IATA) Code: RSE.

Parent organization/shareholders: HRH Prince Saud bin Abdulaziz Al Saud (100%).

Main Base: Bahrain International Airport (BAH).

International, freight destinations: Brussels, Dubai, and Milan.

August 2009: 727-277F (22643), leased to Neptune Air (NEP) as (9M-NEP).

September 2011: 757-225 (22211, A9C-DHC), ex-(N-N314ST), Aerolease (LEE) leased.

July 2012: (DHL) opened a $175 million hub at Shanghai Pudong airport (PVG) and said it would invest another $132 million over the next two 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.

March 2013: Oman Air (OMR) is increasing its freight capacity through a new joint venture (JV) with cargo specialist (DHL). The new agreement, which has already taken effect, involves Oman Air Cargo signing an exclusive Block Space Agreement to utilize (DHL)’s capacity between Muscat and Dubai. The latter airline (DHX) uses a Boeing 757-200PCF on the route.

(OMR) (CEO) Wayne Pearce said, “The additional main deck capacity available as a result of our joint venture (JV) is a vital step towards enhancing our cargo capacity, as it qualifies (OMR) to accept main deck cargo.”

The new partnership would create synergies for both organizations.
“We will continue to create additional capacity and more frequencies in the near future to meet the requirements of our worldwide customers. In the meantime, we look forward to working closely with (DHL) Aviation (DHX) to successfully deliver this much sought-after service.”

“The Boeing 757-200PCF will initially operate a once-weekly schedule into Muscat,” (DHL) VP Middle East & Africa, Malcolm Macbeth said. “(DHL)’s long-term vision is to increase the number of weekly frequencies into Muscat International Airport, where cargo and logistics services are viewed as an opportunity for growth.”

Oman Air Cargo is considering further expansion of its operations. Beyond the new partnership with (DHL), it is looking at wide body capacity opportunities with other operators, connecting from Muscat and Salalah, in SW Oman, as part of its growth program.

August 2013: Dublin Aerospace (DAS) will provide (APU) maintenance on 757s for Bahrain’s (DHL) (DHX) Maintenance Engineering (ME) for 5 years.

April 2014: 727-223F (20994, HZ-SND)), to Sierra West Airlines (IATA) Code: PB; (ICAO) Code (PKW) - (Callsign - PLATINUM WEST)).

February 2016: Deutsche Post is considering disposing of its air and ocean freight forwarding services division, (DHL) Global Forwarding, as it seeks to streamline its operations "Reuters" has reported.

Informed sources told the newswire that the German logistics giant is studying a variety of options including a partnership, the creation of a joint-venture (JV), and the sale of either part or the complete operation. Among the possible buyers mentioned are Japan Post Holdings though no firm plans have yet been decided, the report said. Should a sale be concluded, Deutsche Post would likely retain (DHL) Global Forwarding's land freight forwarding unit while selling off its air and ocean business, the sources said.

Deutsche Post was forced to write off EUR345 million/USD384.43 million in the 3rd quarter of last year after it encountered problems during the implementation of its "New Forwarding Environment" Information Technology (IT) platform at (DHL) Global Forwarding.

May 2017: 767-281F (23143, N793AX) Cargo Aircraft Management leased.

Fleet:
(definitions)

October 2017:

1 727-223F (JT8D-9A HK) (1199-21084, /76 HZ-SNB; 1190-20994, /76 HZ-SND), EX-(SWF), ALL IN (DHL) COLORS. JOINT OPS WITH (SNAS) AVIATION. 20994; TO SIERRA WEST AIRLINES - - SEE 2014-04. FREIGHTER.

1 727-230F (JT8D-15 HK) (1091-20905, /75 HZ-SNC), EX-(SWF). IN (DHL) COLORS. JOINT OPS WITH (SNAS) AVIATION. FREIGHTER.

1 727-264F (JT8D-17R HK) (1051-20896, /05 HZ-SNA), (DHL) COLORS. JOINT OPS WITH (SNAS) AVIATION. FREIGHTER.

2 727-277F (JT8D) (1762-22643, HZ-SNF; 1768-22644, HS-SNE), JOINT OPS WITH (SNAS) AVIATION. 22643; LST (NEP) 2009-08. FREIGHTER.

0 757-225PF (22211, A9C-DHC; 22611, A9C-DHD), EX-(N314ST), AEROLEASE (LEE) LSD 2011-09, EX-(N314ST). 22211 & 22611 RETURNED TO (LEE) 2017-06. FREIGHTER.

1 767-281F (23143, N793AX), CARGO AIRCRAFT MANAGEMENT LSD 2017-05. FREIGHTER.

2 CONVAIR 580.

3 FAIRCHILD METRO III (TPE331-11U-612G) (769B, /91 HZ-SN10; 565, /83 HZ-SN7; 788B, /91 A9C-DHA), IN (DHL) COLORS. JOINT OPS WITH (SNAS) AVIATION. FREIGHTER.

1 FAIRCHILD MERLIN IVC (TPE331-11U-611G) (434B, /82 HZ-SNB), IN (DHL) COLORS. JOINT OPS WITH (SNAS) AVIATION. FREIGHTER.

Management:
(definitions)

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

JOHN CHISHOLM, CHAIRMAN.

MOHAMMED AL-JAMEA, (CEO), (SNAS).

STEVE WILKS, MANAGING DIRECTOR & ACCOUNTABLE MANAGER (steve.wilks@dhl.com).

MALCOLM MACBETH, (DHL) VP MIDDLE EAST & AFRICA.

GRANT JOLLEY, DIRECTOR FLIGHT OPERATIONS.

GEERT HERMANS, DIRECTOR OPERATIONS.

DUNCAN WATSON, DIRECTOR TECHNICAL.

JEREMY MACKIE, DIRECTOR SAFETY.

ASHLEY NORTHCOTT, DIRECTOR MAINTENANCE.

 
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