*FedEx Expands Global Delivery Network
FedEx said yesterday that later this summer it will offer new wide-body aircraft flights directly connecting the FedEx EuroOne hub in Paris and the FedEx AsiaOne hub at Subic Bay in the Philippines. By reconfiguring its express shipping network, the company can respond to the growing demand for reduced transit times, later customer pickups and earlier deliveries in key global markets.
In particular, the service enhancements will center on three key system improvements:
• Five direct MD-11 flights per week, from the FedEx EuroOne hub at Charles de Gaulle Airport in Paris to the FedEx AsiaOne hub at Subic Bay.
• Ten weekly A310 flights connecting Europe, the Middle East, India and Asia. These flights will connect FedEx hubs in Paris; Dubai, United Arab Emirates; Bombay, India; Bangkok, Thailand; and Subic Bay.
• Ten weekly A310 flights between Paris and Copenhagen, Denmark. New flights on Shorts 360 aircraft will connect other Scandinavian markets to Copenhagen and the rest of the FedEx EuroOne network.
David J. Bronczek, FedEx Express CEO, said this setup would allow FedEx customers in India, for example, to get their products to the East Coast of the United States a full business day faster. In addition, companies in Southeast Asia doing business in Europe will be able to take orders from customers two to three hours later in the evening, thanks to later cutoff times for FedEx pickups.
"Businesses around the world [that] compete based on their speed to market will benefit significantly from these system improvements," he said.
Bronczek also said FedEx would make these changes without adding to its aircraft fleet or opening significant new sorting facilities. Last September, FedEx opened a $200 million facility near Paris to improve and expand shipments for Europe, the Middle East and Africa. The company handles Asian shipments through its hub at Subic Bay.
The moves come as FedEx is seeing an increase in international shipments. In the quarter that ended May 31, FedEx deliveries from Asia rose 30 percent, while shipments from Europe climbed 26 percent. However, while international priority shipments are the most lucrative on a per-package basis, they comprised just 16 percent of FedEx's U.S. overnight deliveries in fiscal 2000, which ended May 31.
"Following the success of our Asian network and hub since their launch in 1995, we have seen excellent performance in Europe since opening our Paris hub last September," Bronczek said. "Our next step is to link these two systems to form a compelling combination. We will strategically place new flights, aircraft and services in Europe and Asia, where demand for our intercontinental network is especially strong, and build upon the recent rapid growth in the two regions."
FedEx will detail the more convenient pickups and deliveries in local markets when they go into effect later this summer.