OPPapers.com

Frederick W.Smith

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MARKETING ASSIGNMENT PROJECT

BFT109

09/10

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FedEx History in APAC

FedEx Express (FedEx) conceived the idea of an international network more than 20 years ago, when it purchased Gelco Express International, a courier service with offices in Europe and Asia. FedEx set up the first Asia Pacific regional office in Hawaii in 1987, and a year later began its first direct, scheduled cargo service to Japan.

In 1989, FedEx expanded its service offerings in the region when it purchased Flying Tigers, an all-cargo airline with flying rights to 21 countries. For the first time, FedEx had governmental permission to carry documents, packages and freight to multiple Asian destinations on a regular schedule including: Hong Kong, Japan, Korea, Malaysia, Singapore, Taiwan and Thailand.

As economies across Asia Pacific began to grow and prosper, FedEx's shipment volumes and its presence in the marketplace began to expand as well. Recognizing a need for the company to be closer to Asian customers, FedEx moved its Pacific headquarters from Hawaii to Hong Kong in 1992.

The company's success in meeting customers' needs resulted in the creation of an innovative unparalleled network called FedEx AsiaOne? launched in September 1995. This launch included five trans-Pacific flights, the creation of an Asia Pacific hub in Subic Bay, Philippines, and the creation of an overnight intra-Asian delivery network connecting 11 major Asian centers. The network was expanded to 19 Asian destinations in 2001.

In September 1997, FedEx announced the world's first 'Round-the-World' cargo flight, which originated in Indianapolis, Indiana, and continued to Paris, Dubai, United Arab Emirates, Mumbai, India, Bangkok, Thailand, the Subic Bay Asia hub in the Philippines, and ended in Anchorage, Alaska, U.S.

In 2002 FedEx demonstrated its continued efforts in strengthening its intra-Asia network. Sorting capacity at Subic Bay was doubled through facility expansion and...