FedEx Domestic China Service Takes Off

SHANGHAI, June 28, 2007 — FedEx Express, the world’s largest express transportation company, announced today the official launch of its domestic service in China, underscoring the company’s ongoing commitment to the country and bolstering its global leadership in the air cargo industry.

Of the new services, the next-business-day time-definite service benefits customers in more than 30 cities, with the packages being picked up in the evening and being delivered by noon the next day. The 48-hour day-definite service reaches more than 200 cities across China.

“The launch of domestic service in China is of great significance to our strategic development in the country and the world,” said Eddy Chan, senior vice president, FedEx China. “With our new domestic service, our customers will become more competitive in the marketplace. Up to 90 percent of existing FedEx customers in China have expressed the need for a reliable domestic express service, and the potential of our domestic-only customer base is enormous and keeps growing. As a result of increasing customer demand, the number of cities being served will expand rapidly.”

FedEx connects more than 90 percent of China’s GDP to the rest of the world through its global network. The new domestic service will join the FedEx worldwide transportation network to supportChina’s supply chains and enhance regional trade, which are driving the country’s long-term economic growth.

FedEx Domestic China Service Takes Off

In addition to the first-tier cities such as Beijing, Shanghai and Guangzhou, the new domestic service also covers major Chinese second- and third- tier cities, including Changshu, Ningbo, Foshan, Dongguan, Shenyang and Wuhan.

“In China, many high value-added industries are migrating to second- and third- tier cities, which has encouraged the need for reliable time-definite service in these regions,” said Jimmy Chen, regional vice president, domestic service, FedEx China. “FedEx actively responds to the country’s inland development plan, and through our domestic network, we will not only serve our customers in key Chinese cities, but also expand to more second- and third-tier cities, which is our long-term commitment to the Chinese market.”

Like the U.S. hub-and-spoke system which FedEx pioneered, the domestic service network includes a hub-and-spoke system centered at the Hangzhou Xiaoshan International Airport. The newly-established hub is initially able to sort up to 9,000 packages per hour. By using three Boeing 737 freighters, Okay Airways is operating an air cargo domestic network within China to support FedEx. The aircraft operates two circular routes both to the north and south nightly, covering the country’s major airports.

FedEx Express: A history of leadership in China

The announcement of domestic services underscores the ongoing FedEx commitment to China and bolsters FedEx global leadership in the air cargo industry. 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

FedEx Domestic China Service Takes Off

  • 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.
  • As of March 25, 2007, FedEx Express has 30 weekly U.S.-China frequencies – more frequencies than any other all cargo carrier.
  • Connects more than 200 Chinese cities to the FedEx international network.
  • Employs nearly 6,000 workers in China.
  • Broke ground in January 2006 on a new US$150 million Asia Pacific hub in the southern China city of Guangzhou that will employ about 1,200 workers.
  • Acquired the DTW Group in 2007 which included DTW Group’s 50 percent share in the International Priority express joint venture, converting the joint venture into a wholly FedEx-owned company.
  • The DTW Group assets used to support FedEx International Priority services; and DTW Group domestic express assets covering 89 locations.

About FedEx Express

FedEx Express is the world’s largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee.