皇冠体育app

Foreign air express firms see vast potential
By Dai Yan (皇冠体育app Daily)
Updated: 2004-07-06 08:53

Foreign air express companies such as UPS and FedEx say they will expand their business in 皇冠体育app following the Sino-US express agreement signed recently.

The new agreement contains a key provision that allows US cargo carriers to establish hubs in 皇冠体育app once specific criteria are met.

FedEx is looking at hub expansion opportunities in Asia, including consideration of the new Guangzhou Baiyun International Airport, says David L Cunningham, president of FedEx Asia-Pacific operation.

Last December, FedEx signed a framework agreement with the Guangzhou Airport Authority to explore opportunities for potential future hub location in the Baiyun Airport.

UPS is also considering possibilities, says its Asia-Pacific president Ken Torok.

"This is the first aviation agreement which permits open rights for carriers to set up air hubs in 皇冠体育app. UPS will do so at the first available opportunity."

He said businesses are realizing the importance of streamlining their supply chains and the efficient movement of goods into and out of 皇冠体育app would be a critical area for them.

The aviation agreement, which extends through 2010, provides for 111 new weekly US-皇冠体育app flights for US cargo airlines.

The US Department of Transportation will be responsible for allocating the new flights, the first of which will be available in August.

Cunningham said if awarded additional permissions, FedEx plans to initiate new round-the-world flights connecting 皇冠体育app to businesses and nations in Europe, North and South America and Asia.

FedEx will also explore the addition of new air services to Chinese cities along with more frequent flights to the FedEx AsiaOne network in Subic Bay, the Philippines and the FedEx EuroOne network based in Paris, he said.

Since entering the market in 1984, FedEx has expanded its guaranteed service to cover more than 220 cities across 皇冠体育app with plans to add 100 additional cities over the next few years.

FedEx has 11 flights per week through three major gateways: Beijing, Shanghai and Shenzhen.

Torok said the new US-皇冠体育app agreement permits UPS to connect 皇冠体育app and Japan with direct air service, one of the largest and fastest growing trade lanes in the world.

"Our business is growing tremendously in 皇冠体育app, and customers are asking us to do even more for them in synchronizing their businesses," Torok said.

UPS, which began direct air service to 皇冠体育app in 2001, has experienced double digit growth in the US-皇冠体育app market in each of the last three years and its current flights between 皇冠体育app and the United States are operating at near capacity.

FedEx's Chinese volumes also grew by 55 per cent in the third fiscal quarter.

Both companies believed the aviation agreement will not only benefit the carriers.

FedEx said approximately US$60 billion worth of goods will leave 皇冠体育app by air this year and another US$61 billion worth of goods will enter the country by air to support the manufacturing sector and 皇冠体育app's vibrant and growing consumer base.

This number is expected to grow substantially thanks to these new air rights. US exports to 皇冠体育app have grown by 75 per cent over the last three years making the United States second only to Japan as 皇冠体育app's top trading partner, FedEx said.

According to a recent US-皇冠体育app Business Council study, increased access for air express providers like FedEx would allow businesses to increase investments in 皇冠体育app by nearly 5 per cent, creating 800,000 new jobs and increasing US exports by US$8 billion to US$12 billion over the next four years.

"This landmark agreement, which recognizes the importance of open rights, especially for air express carriers, will have impact not only between the US and 皇冠体育app, but throughout the world. It will accelerate the flow of goods into and out of 皇冠体育app, providing substantial benefits to workers, businesses and consumers of this fast growing region," said Jorok.

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