United

COVER STORY: FedEx domestic time-definite service takes off in China

Friday, 09 February 2007
FEDEX Express, a subsidiary of FedEx Corp and the world’s largest express transportation company, has now made its iconic next-business-day service available to customers throughout China. Since FedEx began its next-business-day service on 28 May, coverage has expanded from 19 to over 30 cities, while 48-hour day-definite service is offered in more than 200 cities and counties. As a result of increasing customer demand, the number of cities being served continues to expand rapidly.

“Businesses in China have been waiting for FedEx to make this time-definite service available,” said David L Cunningham Jr, president, Asia Pacific, FedEx Express.  “We have seen healthy and encouraging demand from our existing international customers and potential new customers. Since we began operations less than a month ago, thousands of packages have already passed through our hub in Hangzhou.”

Companies across China, including second- and third-tier cities, now benefit from increased domestic reach, greater connectivity among cities and reliable, time-definite express service. The extended network also comes with a money-back guarantee for the next-business-day express service.

“Up to 90 per cent of existing FedEx customers in China have expressed the need for a reliable domestic express service,” said Eddy Chan, senior vice president of FedEx China.  “This is a strong signal to us that many companies view domestic express service in China as a catalyst for growth and competitiveness in this exploding market.”

Like the US express hub-and-spoke system which FedEx pioneered, the domestic express network includes a hub-and-spoke system centred at the Hangzhou Xiaoshan International Airport, located in east China’s Zhejiang Province.  The newly established hub can sort up to 9000 packages per hour.

A domestic carrier, Okay Airways, provides the domestic air transportation. Using three Boeing 737 freighters, Okay Airways operates a dedicated air cargo domestic network within China in support of FedEx. The aircraft operate two circular routes nightly, covering the country’s major airports.

“We greatly appreciate the Zhejiang Government’s commitment to expanding business opportunities by increasing access to markets,” said Cunningham.  “Hangzhou offers an excellent combination of infrastructure, air traffic capacity, air traffic capacity, geographic location, and weather conditions.  This means better cut-off times and faster service for our customers.  We also have an excellent air carrier in Okay Airways.  Okay Airways has a clear understanding of our vision for a fully integrated overnight express network, and they are committed to developing an air cargo network in support of that vision.”

The latest expansion of domestic its express service underscores an ongoing FedEx commitment to China.  For example, FedEx:

• Was the first express air carrier to enter the market in 1984;
• Was the first express carrier to directly serve China with its own aircraft in 1996;
• Launched the express industry’s first express direct flight from mainland China to Europe in March 2005;
• Initiated the first overnight express link between India and China in September 2005;
• Was the first express transportation company to be linked electronically with China customs;
• Employs almost 6000 workers in China.

HACTL
Cathay Cargo
United

COVER STORY: FedEx domestic time-definite service takes off in China

Friday, 09 February 2007
FEDEX Express, a subsidiary of FedEx Corp and the world’s largest express transportation company, has now made its iconic next-business-day service available to customers throughout China. Since FedEx began its next-business-day service on 28 May, coverage has expanded from 19 to over 30 cities, while 48-hour day-definite service is offered in more than 200 cities and counties. As a result of increasing customer demand, the number of cities being served continues to expand rapidly.

“Businesses in China have been waiting for FedEx to make this time-definite service available,” said David L Cunningham Jr, president, Asia Pacific, FedEx Express.  “We have seen healthy and encouraging demand from our existing international customers and potential new customers. Since we began operations less than a month ago, thousands of packages have already passed through our hub in Hangzhou.”

Companies across China, including second- and third-tier cities, now benefit from increased domestic reach, greater connectivity among cities and reliable, time-definite express service. The extended network also comes with a money-back guarantee for the next-business-day express service.

“Up to 90 per cent of existing FedEx customers in China have expressed the need for a reliable domestic express service,” said Eddy Chan, senior vice president of FedEx China.  “This is a strong signal to us that many companies view domestic express service in China as a catalyst for growth and competitiveness in this exploding market.”

Like the US express hub-and-spoke system which FedEx pioneered, the domestic express network includes a hub-and-spoke system centred at the Hangzhou Xiaoshan International Airport, located in east China’s Zhejiang Province.  The newly established hub can sort up to 9000 packages per hour.

A domestic carrier, Okay Airways, provides the domestic air transportation. Using three Boeing 737 freighters, Okay Airways operates a dedicated air cargo domestic network within China in support of FedEx. The aircraft operate two circular routes nightly, covering the country’s major airports.

“We greatly appreciate the Zhejiang Government’s commitment to expanding business opportunities by increasing access to markets,” said Cunningham.  “Hangzhou offers an excellent combination of infrastructure, air traffic capacity, air traffic capacity, geographic location, and weather conditions.  This means better cut-off times and faster service for our customers.  We also have an excellent air carrier in Okay Airways.  Okay Airways has a clear understanding of our vision for a fully integrated overnight express network, and they are committed to developing an air cargo network in support of that vision.”

The latest expansion of domestic its express service underscores an ongoing FedEx commitment to China.  For example, FedEx:

• Was the first express air carrier to enter the market in 1984;
• Was the first express carrier to directly serve China with its own aircraft in 1996;
• Launched the express industry’s first express direct flight from mainland China to Europe in March 2005;
• Initiated the first overnight express link between India and China in September 2005;
• Was the first express transportation company to be linked electronically with China customs;
• Employs almost 6000 workers in China.

HACTL
Cathay Cargo
HACTL
Cathay Cargo