Globalisation acts as a mainspring of network expansion

The global express market is growing at an annual average rate of 6% to 8%, as globalisation fuels the expansion of worldwide trade, and more and more shipments need to be handled swiftly and reliably. The demand for time-critical express services is rising as a consequence. With 124,000 employees and a network spanning more than 220 countries and territories, we are exceptionally well positioned to participate in the future growth of this attractive segment.

Having transferred the German parcel business to the MAIL Division with effect from 1 January 2007, we are focusing more acutely on international business. There is a particularly strong rise in demand in this market. According to a recent study by Airbus, the volume of intercontinental air traffic is expected to increase by 6% a year until 2025 and we intend to play a part in this expansion. The groundwork has already been laid. In conjunction with our partner companies, we hold the necessary flying rights as well as takeoff and landing slots and can draw on a fleet of more than 350 aircraft.

In June 2007, we acquired an interest in Polar Air Cargo, a US airline. This gives us cargo capacities on the trans-Pacific routes, where the volume of express business is forecast to increase by some 10% in the coming years. In September, we founded the air freight company AeroLogic together with Lufthansa Cargo. From spring 2009, it will enable us to extend our capacity and to shorten transit times on trade routes between Europe and Asia, improving capacity utilisation and reducing costs through the sharing of aircraft. Air transport on the north Atlantic route is serviced by our own fleet, which we can deploy flexibly. To this end, we ordered six Boeing 767 cargo planes in the reporting period. Here, weight is anticipated to grow by between 4% and 5% in the next few years. Extension of the air freight network is being supported by capital expenditure on modern ground infrastructure.