UPS Begins Direct Service to China

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United Parcel Service of America Inc. began the maiden voyage of the UPS China Express yesterday, the inaugural UPS flight to China, from the Ontario International Airport in Ontario, CA.

UPS, Atlanta, plans to deliver to every address in the People's Republic of China by year's end. UPS said the flights to China will strengthen the company's global capabilities, improve transit time for shipments and increase reliability

With these new flights, UPS will offer the broadest portfolio of services to customers shipping to and from China, said Jim Kelly, chairman/CEO of UPS. "It's further proof that UPS is a global carrier that not only moves goods, information and funds but also connects today's global businesses with markets and producers worldwide."

UPS' flights to Beijing and Shanghai depart just two months after the U.S. Department of Transportation awarded the company rights to operate direct air service from the United States to China.

The company now will operate six UPS Boeing 747 flights a week between the United States and China. Four flights will originate in Ontario, and two will depart from Newark, NJ. The UPS Boeing 747 aircraft has a payload of 240,000 pounds. The direct-to-China service is projected to add about $100 million in revenue for UPS in its first full year of operation.

Before being awarded direct air rights, UPS served China through Hong Kong. The company has been operating in China since 1988 through its partner, Sinotrans. UPS China continues to experience rapid growth in that market with export volume in 2000 increasing more than 45 percent over the previous year.

"UPS expects continued strong and robust growth in China," Kelly said. "We take a long-term approach to any expansion and believe the opportunity in China is great enough to overcome any business cycle."

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