CFL, Heathrow Airport’s only on-site express courier handler, has today announced a three-year extension to its deal with Etihad Airways, already one of the company’s largest carriers by volume.
The deal builds on CFL’s longer-term strategy to create stronger ties with regions outside the EU and follows the recent announcement of a deal with Thai Airways that will give UK businesses more courier access to the markets of the Far East.
Etihad Airways is the national airline of the United Arab Emirates. From its base in Abu Dhabi the airline operates an extensive passenger and cargo fleet, with five dedicated cargo-carrying Boeing 777 freighter aircraft each with a capacity of over 100,000kgs.
Matthew Ware, CEO at CFL said; “Etihad is a major global player in cargo shipping. This extension to our partnership agreement consolidates our ability to service markets in the Far East and India – both vital trading partners for the UK.
“The Middle East is a natural transit hub for cargo coming from those regions, so our partnership with Etihad signals our continuing commitment to support the UK economy by ensuring strong, stable, and commercially viable trading connections.”
The original deal with Etihad was signed in January 2021, since when CFL has invested in technology to improve messaging and data exchange with its airline partners, and in operational efficiency and staff development.
The extension took effect from September 1st.
In addition to its cargo carriers Etihad operates an extensive fleet of long-range, wide-body passenger jets – so it has enormous cargo carrying capacity, which allows it to be highly competitive.
The seven emirates that constitute the UAE support a population of over 10 million, two thirds of whom live in Dubai or Abu Dhabi.
The UAE is located at the centre of the world’s busiest trade lanes, and is perfectly located to carry cargo from India and the Far East.
Indian express import volumes have grown by around 30% year-on-year, and the country is becoming one of the most important import markets for the UK.
Ware continued; “We have actively pursued a strategy of building relationships with key airline partners in important economic regions, and this deal represents a significant step towards fulfilling that strategy.
“For overseas businesses, relying on British components or finished goods, speed and reliability are critical. Deals like this create a network that UK businesses can exploit, giving them wider choice and greater certainty over service consistency.”
The airline industry is a key part of the global e-commerce ecosystem – IATA says 80% of e-commerce goods by value travel by air. Airfreight in general accounts for only around 0.5% of UK total international movements by weight but about 45% of them by value, according to a report by the Freight Trade Association.
CFL was formed forty years ago as Heathrow became the world’s premier long-haul airport.
The growth of the on-board courier product, which allowed unaccompanied packages to travel in the hold as unaccompanied luggage, led to huge pressure on the passenger terminals.
As a result, Heathrow looked to move the courier product out of passenger terminals and the industry created CFL to manage this.
