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Volume 14,Issue 3 Autumn 2012

FedEx to offer overnight express service in China


FedEx Express will offer overnight domestic express service in China starting on May 28, banking on China’s robust economic growth. The new domestic offering will connect businesses both within China and around the world, FedEx said in a statement. The company connects more than 90 percent of China’s gross domestic product to the rest of the world through its global network. The new domestic service will serve China’s market with an overnight delivery service to 19 cities and a day-definite service to more than 200 cities throughout the country. FedEx sees companies across China, including second- and third-tier cities, benefiting from increased domestic reach, and greater connectivity among cities. As a bonus, FedEx will offer a money-back guarantee for the next-business-day express service. “We are well-positioned to capitalize on China’s transition to a consumer economy through its rapidly growing middle class,” said Michael Ducker, president of FedEx Express International. “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,” said Eddy Chan, senior vice president of FedEx China. Like the U.S. express hub-and-spoke system which FedEx pioneered, the domestic express network includes a hub-and-spoke system centered at the Hangzhou Xiaoshan International Airport in Zhejiang Province. The new hub will initially be able to sort up to 9,000 packages per hour. Chinese carrier Okay Airways will provide the domestic air transportation using three Boeing 737 freighters. Okay Airways will 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 David Cunningham Jr., president of FedEx Asia Pacific. “Hangzhou offers an excellent combination of infrastructure, air traffic capacity, air traffic capacity, geographic location and weather conditions,” he said.

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