THG launches its own air cargo service to speed global distribution of goods

Manchester-based global technology and online consumer brand group, The Hut Group (THG), is to set up its own aviation business to speed the global distribution of its goods.

The business, based next to Manchester Airport, also announced this morning a partnership with Singapore Airlines to charter more than 100 flights.

The Hut Group’s own operation, THG Air, will see it buy and operate two cargo planes.

It said by the end of October 2020, THG will have its own cargo planes live, branded with the ‘THG Air’ livery, operating out of Manchester Airport.

The partnership with Singapore Airlines will see THG remove its reliance on scheduled passenger services.

This is in response to both recent unprecedented disruption across the airline industry, and THG’s strong international sales growth.

Since the start of 2020, THG has been running successful trials, using dedicated cargo flights to service its global operations, especially across the Asia region.

The significant success of these trials has provided THG with the confidence to embark on this new partnership with Singapore Airlines and for THG to go a step further and announce the launch of ‘THG Air’.

Additionally, THG Air will form a key pillar of the THG Ingenuity service offering for clients seeking market access in the Asia region.

Earlier this month THG Ingenuity, the technology services division of THG, signed a major contract with Nestlé Health Science.

The partnership with Singapore Airlines comes as THG continues to expand its global distribution centres.

In recent months THG has opened three new centres in the USA, one in Singapore and one in India. A further six overseas distribution centres are planned before the end of the year.

Matthew Moulding, founder and chief executive of THG, said: “The recent disruption across the airline industry has brought huge challenges in the movement of goods across the globe.

“This led us to accelerate our trials for dedicated cargo planes to link together our own global manufacturing and distribution centres.

“These trials have proved a great success, resulting in today’s partnership with Singapore Airlines.

“The trials have also given us the confidence to supplement this partnership with the launch of two of own cargo planes, under the livery of ‘THG Air’.”

He added: “The partnership with Singapore Airlines places us in the strong position of having secured routes from UK to Asia for the foreseeable future, enabling us to keep our supply chain moving and delivering goods – including essential items such as vitamins, personal care and hygiene products.

“Navigating the current crisis by forming these partnerships is an integral part of our strategy for THG Air, which will cement our standing as a global leader in ecommerce and technology and brings us closer to millions of customers.”

Sherine Teo, vice president of digital and e-commerce logistics, Singapore Airlines, said: “We welcome this partnership with THG, which facilitates the movement of goods across Asia and supports global supply chains.

“This collaboration will leverage Singapore Airlines’ flight network to ensure timely and efficient supply and delivery of THG goods to its customers.”