DHL TO SET UP HUB IN HONG KONG, TEAMS WITH CATHAY PACIFIC

   DHL Worldwide Express said it will move its Asian express hub to Hong Kong and team up with Cathay Pacific Airways to expand its cargo capacity in the region.
   Beginning in March, DHL will use Cathay aircraft to move packages
between Hong Kong and Osaka, Japan; Seoul, South Korea; Singapore; and Taipei, Taiwan. Hong Kong-based Cathay said it will add 32 flights per week to those key Asian freight destinations, giving DHL 912 tons of capacity a week.
   DHL will use the lower deck cargo capacity on Cathay passenger planes. Cathay also will hire 100 people to work in DHL’s new hub.
   The deal should benefit both carriers. Cathay gains access to a ready
flow of high-margin freight traffic, and DHL can use Cathay’s network to expand in Asia.
   DHL will close its hub in the Philippines and end its long-time
relationship with regional carrier Continental Micronesia as a result of
the new arrangement.
   Industry sources say DHL has been in talks to sign a similar agreement with Air Macau to gain greater access to air routes into and out of China, Korea and Japan.