Asia Pacific (English)

FedEx Announces Domestic Express Services in China

HANGZHOU, March 20, 2007 -- FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) announced today that it will offer next-business-day domestic express service in China beginning May 28, 2007. Combined with the company’s industry-leading international express service, the new domestic offering will connect businesses both within China and around the world. FedEx connects more than 90 percent of China’s GDP to the rest of the world through its global network.

The new domestic services, expected to be fully operational in June 2007, will serve China’s burgeoning market with an overnight, time-definite delivery service to 19 cities and a day-definite service to more than 200 cities throughout the country. Real-time package status tracking will let customers know where their shipments are every step of the way.

Companies across China, including second- and third-tier cities, will benefit from increased domestic reach, greater connectivity among cities and reliable, time-definite express service. 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 L. Ducker, president, FedEx Express International. “Our worldwide transportation network supports China’s supply chains, which are driving long-term economic growth for the country.”

“Up to 90 percent of existing FedEx customers in China have expressed the need for a reliable domestic express service,” said Eddy Chan, senior vice president, 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 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, located in east China’s Zhejiang Province. The newly established hub will initially be able to sort up to 9,000 packages per hour.

A domestic carrier, Okay Airways, will provide the domestic air transportation. Using three Boeing 737 freighters, Okay Airways will operate an air cargo domestic network within China in support of FedEx. The aircraft 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 L. Cunningham, Jr., president, FedEx Asia Pacific. “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.”

FedEx Express: A history of leadership in China

This announcement of domestic express 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;
  • 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 will have 30 weekly U.S.-China frequencies more frequencies than any other cargo carrier;
  • Connects more than 200 Chinese cities to the FedEx international network;
  • Employs almost 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; and,
  • 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.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $34 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 275,000 employees and contractors to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.