Press Releases
Shanghai, September 3, 1996 -- According to Federal Express (FedEx), the
company begins expanded flight operations today that add significant
additional access for Chinese importers and exporters through direct,
regularly scheduled all-cargo flights linking Shanghai directly with the
company's Asia Pacific Hub in Subic Bay, Philippines.
The service with a FedEx DC-10 aircraft and crew begins today. It is the first
direct flight connecting China to FedEx's hub and linking China into the
extensive FedEx AsiaOne network which now connects 13 major commercial and
financial centers in Asia overnight.
"The significance of today's launch of an additional spoke to the hub-and-
spokes concept we implemented in Subic Bay is enormous. It means that
customers in Shanghai and Beijing can now ship and receive packages
between China and the US and rest of Asia, "says Mike Ducker, senior vice
president for Asia Pacific Division.
FedEx's initial strategy in Asia was to establish its first hub, and it selected an
ideal site on the former US Navy base in Subic Bay to achieve this goal last
year. The company's mid- to long-term strategy includes expanding
operations at the Subic Bay hub and adding additional spokes to the hub over
time. Today's announcement is a tangible and important example of the
company's ongoing commitment to the expansion of services, and is a
milestone event in Asia, according to Mike Ducker.
FedEx pioneered the hub and spokes concept in the US operations many years
ago and is implementing a similar strategy in its international operations.
FedEx received permits and licenses in 1995 from both the Civil Aviation
Administration of China (CAAC) and the US Department of Transportation
(DOT) to operate an all-cargo route purchased from Evergreen International
Airlines, Inc. With this approval, FedEx is recognized by the CAAC as the
sole US-based all-cargo carrier with aviation rights to China.
With Shanghai and Beijing now connected to the FedEx AsiaOne network and the
Asia Pacific Hub in Subic Bay, China importers and exporters gain exceptional
and unprecedented connectivity from China to Subic Bay, from Asia into and
out of China, and between China and the US.
"The eastbound movement out of Shanghai and Beijing through Narita in
Japan gives direct access to JFK airport in New York, one of the world's most
important cargo hubs. From there, shippers can easily access other important
global markets through FedEx networks in North America, South America,
and Europe. Not only that, this new connection provides extensive access
into Asia Pacific's largest and most comprehensive intra-Asian overnight
service -- all through FedEx's extensive linehaul system, "says John Quinn,
vice president for China and Mid-Pacific operations.
FedEx began flying its own aircraft to and from China in March 1996. It now
has all three critically important components in place for extensive service.
These include: its own scheduled linehaul; reliable door-to-door pick-up and
delivery to 60 cities; and consistent and fast customs clearance.
Initially entering the China market in 1984, FedEx's operations were further
enhanced in 1994 when it became the first express transportation company to
be linked electronically with China Customs. This now means that
information, in many cases, can be transmitted to customs authorities in
Beijing and Shanghai before shipments actually arrive at the airports.
"Plans for the China market include adding service destinations, with the
total cities directly served in China currently standing at 60, and this number
is targeted to increase by 20 per year for the next five years. With the Subic
Bay connection, we now have two frequencies per week from Beijing and
Shanghai into Asia, and we have permission by China authorities to further
increase by two frequencies per week. There is, literally, no other all-cargo
carrier which can meet service levels and standards," Mr. Quinn added.
FedEx currently services the Asia Pacific market with nearly 3,700 employees
serving more than 30 countries and territories. The company provides the
most extensive trans-Pacific air lift of any major competitor. Operating its
own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers 150 flights per
week to Shanghai, Beijing, Tokyo, Osaka, Hong Kong, Kaohsiung, Taipei,
Seoul, Singapore, Kuala Lumpur, Penang, Manila and Subic Bay.
On a global basis, FedEx serves 211 countries, providing fast and reliable
services for approximately 2.5 million items each working day. The company
has more than 123,000 employees, over 560 aircraft, 36,000 vehicles, and
nearly 180,000 Powership® and FedEx ShipTM automated shipping systems in
its integrated global network. Daily global lift capacity is approximately 15.3
million pounds (almost seven million kilograms). Federal Express reported
revenues of US$10.3 billion for its 1996 fiscal year.
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