New agreement recognizes booming
international trade between US and China
FedEx Corporation has congratulated the United States and the
People's Republic of China on the new aviation accord signed today
by government officials from the two countries.
"This new agreement will boost international commerce," said
Michael L. Ducker, executive vice president, International for
FedEx Express. "This marks a big step for China in sustaining its
robust economic development by establishing stronger international
trading links. These new flights will greatly enhance the ability
to connect customers all over the world with the dynamic Chinese
marketplace."
Approximately $60 billion worth of goods will leave China by air
this year and another $61 billion worth of goods will enter the
country by air to support the manufacturing sector and China's
vibrant and growing consumer base. This number is expected to grow
substantially thanks to these new air rights. US exports to China
have grown by 75 percent over the last three years making the
United States second only to Japan as China's top trading partner.
FedEx volumes from Asia grew by 22 percent in the fiscal third
quarter with China volumes up 55 percent year over year.
The agreement, which extends through 2010, provides 111 new
weekly U.S.-China flights for U.S. cargo airlines. The U.S.
Department of Transportation will be responsible for allocating the
new flights, the first of which will be available in August.
The agreement will also facilitate the establishment of hub
operations in China by granting firms that choose to do so full
operational flexibility for air services at a hub. FedEx is looking
at hub expansion opportunities in Asia, including consideration of
the new Guangzhou Baiyun International Airport.
"This new bilateral agreement brings aviation liberalization
into the 21st century," said Ducker. "FedEx is looking forward to
building upon the successes we've had over the last two decades in
China and working with customers all around the world to deliver
the benefits of international trade."
If awarded additional authorities,
FedEx plans to initiate new round-the-world flights connecting
China to businesses and nations in Europe, North and South America
and Asia. FedEx will also explore the addition of air service to
new 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.
FedEx, the largest international express carrier in China, is
celebrating 20 years of service in China. Since entering the market
in 1984, FedEx has expanded its guaranteed service to cover more
than 220 cities across China 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. In
December, Shanghai became the headquarters for FedEx in China where
it employs more than 1,800 people.
According to a recent US-China Business Council study, increased
access for air express providers like FedEx would allow businesses
to increase investments in China by nearly 5 percent, creating
800,000 new jobs and increasing U.S. exports by $8 billion to $12
billion over the next four years.