Press Releases
Federal Express announces plans for new intra-Asian and trans-Pacific flights
HONG KONG, April 2, 1998 - Federal Express Corporation (FedEx) today announced a series of new flights that will be introduced this year providing new services to shippers in Cebu and Jakarta, and enhanced services to shippers in Hong Kong, Singapore, Taiwan, Japan, Philippines, and China.
"The needs of companies operating in and doing business with Asia are continuously evolving," said Michael Ducker, president, Asia Pacific Division. "FedEx works closely with our customers to make sure we stay ahead of the curve in anticipating their needs."
New Cebu-Jakarta-Singapore route
One of the most significant new additions to the FedEx network is a flight that will originate at the FedEx Asia Pacific Hub at Subic Bay, going on to Cebu island, one of the Philippines' fastest-growing economic regions, then to Jakarta and Singapore. Then this 5-times weekly flight will connect with the trans-Pacific Super X flight (launched in September 1997) before returning to Subic Bay to complete the express transportation circle.
This new route will be Cebu's window to the world, connecting the island to all of Asia via the FedEx AsiaOne network and to the rest of FedEx's US and global networks via the Super express freighter (SuperX). This flight will also mean a dramatic increase in capacity into Cebu, from the just over 4,000 pounds per day FedEx now offers to over 70,000 pounds using an Airbus 310. Use of larger aircraft will also mean the scheduled flight can accommodate larger, heavier packages and greater custodial control.
This new service represents a significant service expansion for companies operating in Cebu. Cebu is one of the Philippines' most popular investment communities. Many of the investments made in Cebu in recent years are export-oriented industries that rely on fast and reliable transport links to get components and replacement parts in and finished products out of the country to regional and global markets.
Important new link for Jakarta
This new flight will also make a major contribution to Indonesia. It will, for the first time, directly connect Jakarta, using FedEx aircraft, to Asia via FedEx's AsiaOne network and to the US via Super X. FedEx will now be able offer overnight delivery to Asia and the US out of Jakarta, and is the first and only company to offer this.
This new routing will be launched on April 8.
Hong Kong service to expand with opening of new airport
FedEx will also expand service into and out of Hong Kong shortly after the Hong Kong International Airport at Chek Lap Kok opens this summer, increasing capacity and adding a new route from Hong Kong to Osaka, Japan, via Taipei. From there, packages will connect to FedEx's direct flight to the west coast of the US through Oakland, California.
New flight schedules will allow FedEx to extend the cutoff time for packages going from Hong Kong to the U.S. west coast to the end-of-business day, with late-night departure, and add more capacity to Hong Kong's currently tight express market.
Customers in Taiwan will also enjoy later departure times to the U.S. west coast, and hence, the fastest delivery to all of the U.S., as well as direct access to Japan through Osaka.
For example, the flight will depart from Hong Kong at 10:30pm, depart Taipei at 01:35am, and arrive in Oakland by 12:00 midnight.
This service enhancement will begin in August 1998.
Shenzhen joins Beijing and Shanghai as an international gateway in the FedEx global network
FedEx will initiate a new service to move export shipments from China's booming southern city, Shenzhen Special Economic Zone, through Shanghai, China's largest cargo gateway. From Shanghai, shipments will fly directly to the US, retaining FedEx's position as the first and only express delivery company to offer this service.
FedEx currently flies into and out of Beijing and Shanghai to the US four times per week. It first connected these two key cities to the FedEx Asia Pacific hub in Subic Bay in September 1996. The new service will eliminate existing intermediate stops between Shanghai and the US, further enhancing the speed and reliability of transportation links into and out of China, one of the world's largest and most dynamic economies.
FedEx: Investing in Asia's future
"FedEx is committed to Asia, has invested heavily in the region, and will continue to invest in these important manufacturing and distribution centers," said Mr. Ducker. "We suspect that the currency fluctuations experienced by some Asian currencies over the previous months have yet to run their course, and will continue for some time yet.
"In fact, much of what we carry are high-value shipments produced by overseas companies exporting to global markets. Asia continues to be a strong base for offshore manufacturers, and FedEx remains an important contributor in terms of the distribution process.
"This is the way the world's markets work, and this will only increase in the future," Ducker added. The tonnage moved by airplanes accounts for only about two per cent of the total weight of global trade, but represents 40 per cent of the total value.
FedEx currently serves more than 30 countries and territories in the Asia Pacific market with approximately 5,000 employees. The company provides the most extensive trans-Pacific airlift of any major competitor. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 260 flights per week to the following locations: Bangkok, Beijing, Hong Kong, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei, and Tokyo, as well as destinations in the U.S.
Globally, FedEx connects areas that generate 90 per cent of the world's gross domestic product in 24 to 48 hours with door-to-door, customs-cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of 3 million items in 211 countries each working day. FedEx employs approximately 140,000 people and has more than 43,000 drop-off locations, 600 aircraft and 39,500 vehicles in its integrated global network. The company maintains electronic connections with more than 850,000 customers via FedEx PowerShip, FedEx Ship, and FedEx interNetShipSM. Federal Express reported revenues of US$11.5 billion for its fiscal year ended May 31, 1997.
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