FedEx is to start a next-business-day, domestic express service in China in June to capitalise uponthe rapidly-growing, middle-class consumer economy developing in the country.
The US carrier is to deliver on the next business day to 19 cities from itsnewly-established, 9,000 packages/hour hub at Hangzhou Xiaoshan International Airport in eastChina’s Zhejiang province. The service will start on 28 May and be fully operational in June, FedExsaid in a statement.
Combined with the company’s international express service, the new domestic offering wouldconnect businesses both within China and around the world, FedEx added. Two hundred Chinese citieswill also be connected through a new day-definite service, which, like the next-business-daydeliveries, will enable customers real-time package status tracking.
“Up to 90% of existing FedEx customers in China have expressed the need for a reliabledomestic 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 asa catalyst for growth and competitiveness in this exploding market.”
A domestic carrier, Okay Airways, will provide the domestic air transportation. Using threeBoeing 737 freighters, Okay Airways will operate an air cargo domestic network within China insupport of FedEx. The aircraft will operate two circular routes nightly, covering the country’smajor airports.
“We greatly appreciate the Zhejiang Government’s commitment to expanding businessopportunities by increasing access to markets,” said David Cunningham, president of FedEx AsiaPacific.
“Hangzhou offers an excellent combination of infrastructure, air traffic capacity, geographiclocation and weather conditions. This means better cut-off times and faster service for ourcustomers.”
“We also have an excellent air carrier in Okay Airways. Okay Airways has a clearunderstanding of our vision for a fully-integrated, overnight express network and they arecommitted to developing an air cargo network in support of that vision,” Cunningham added.
FedEx bought China’s DTW express group and its domestic network of 89 branches earlier thismonth and from next week increases its number of US-China flights to 30 per week.
It has direct flights between China and Europe and an overnight express link between Chinaand India. The company is also is building a new $150 million Asia Pacific hub in the southernChinese city of Guangzhou.
