DHL scoops Cathay Pacific MRO logistics deal

13 / 07 / 2017

DHL Supply Chain has commenced 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 contract signed earlier this year.

The contract 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 provide additional 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.

“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."

A core team of 120 staff operate on a 24x7x365 basis, managing more than 90,000 sq ft of warehousing space, processing 1m units of spares transaction per annum, round-the-clock transport delivery, and reporting and governance procedures.

Operations commenced after approval was obtained from the Hong Kong Civil Aviation Department and nearly four months of intensive 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 MRObuilding 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, chief executive, DHL Supply Chain Greater China.