DHL doubles its cargo capacity on Hong Kong route

Deutsche Post AG's DHL, the world's largest parcel distribution company, said yesterday it has more than doubled the capacity of its service between Hong Kong and Taipei to meet increased demand.

DHL Worldwide Express will offer service five times a week through an Airbus SAS A300 freighter run by Air Hong Kong Ltd, a cargo carrier it jointly owns with Cathay Pacific Airways Ltd.

"DHL will increase the payload capacity on its turnaround Hong Kong-Taipei route to meet increasing customer demand," the company said.

Asian carriers and cargo airlines have been expanding in the region because factories here have been exporting more to the US and Europe.

Freight traffic between Asia and Europe was forecast to grow at an average of 6.4 percent annually between last year and 2007, compared with a global average of 4.3 percent, according to the International Air Transport Association.

China Airlines (華航), Taiwan's largest carrier, said cargo sales rose 22.7 percent in the first two months of the year, compared to the same period last year, to hit US$169 million.

The airline plans to take delivery of seven aircraft this year, including two freighters, due to stronger-than-expected demand, John Chang (張炯滄), the airline's vice president of finance, said earlier this month.

"Our original forecast was for the cargo business to grow by 14 percent this year, but now it's likely the growth will be more than 20 percent" Chang said.

"It looks like the recovery of cargo demand isn't just a blip," Chang said.