FedEx Express Secures Flexibility on Asia-Pacific Hub Options
-- Extends Lease for Asia-Pacific Hub in Subic Bay Through 2010
-- Signs Agreement to Reserve Space for Potential Hub with Diosdado Macapagal International Airport
TAIPEI, May 31, 2004 - FedEx Express, the world's largest express
transportation company, has extended its lease for its Asia Pacific hub
in Subic Bay, Philippines for three additional years to 2010 with an
option to extend. FedEx also signed an option, which will permit FedEx
to use land at the Diosdado Macapagal International Airport, formerly
known as Clark Air Force Base, to be used for future expansion in the
Philippines if the Company chooses.
FedEx has maintained its Asia Pacific hub at Subic Bay since 1995. The
Subic Bay facility is the largest air express hub in the region and
represents one of the company's most important investments.
FedEx is also considering expansion opportunities in China. Last
December, FedEx signed a framework agreement with the Guangzhou Airport
Authority to explore opportunities for growth in this dynamic part of
the world.
"Our outstanding performance across the region and exceptional results
in China indicate that our current operations at Subic Bay may not be
able to support our projected growth," said David L. Cunningham Jr.,
President of FedEx Express, Asia Pacific Division. "Therefore we have
signed an agreement with Diosdado Macapagal International Airport that
reserved land through 2008. We also continue to hold discussions with
the Baiyun Airport in Guangzhou, China as a potential future hub
location."
"The airport facilities at Subic Bay, DMIA and the new Baiyun Airport
at Guangzhou all have excellent facilities and the government of the
Philippines and China are committed to building their economies and
attracting foreign investments," said Cunningham. "These extensions and
agreements do not commit FedEx to any long-term decisions but provide
flexibility for future expansion."
FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), connects areas
that generate 90% of the world's gross domestic product in one to three
business days 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
more than 3.1 million items to 215 countries each working day. FedEx
employs approximately 138,000 employees and has more than 50,000
drop-off locations, 643 aircraft and approximately 43,000 vehicles in
its integrated global network.
