FedEx downplays threat to Philippine hub

FedEx last week said it was untroubled about the status of its Asia hub following statements from the Philippines government concerning the renegotiation of its air services agreement with the US.
The Philippine government is said to believe the existing arrangements, which give almost complete freedom for US cargo airlines to operate services through some airports in the country, are unfair to Philippine airlines.

AFedEx spokeswoman told IFW: “We don’t expect any changes. That would be a big step back in time. The reason we have a hub at Subic Bay is because we have open skies there. We have an agreement to operate there until 2010 and the freedom to operate air services there is a part of that.” Talks this summer to further expand air services between the two countries broke down when Philippine representatives refused US requests to allow “seventh freedom” flights for US cargo carriers.

FedEx last week received final approval from the US government for 12 additional weekly China freighter flights.

It will use the six that are immediately available to operate westbound MD-11 flights connecting the US, Shanghai and Europe, via other undetermined points in Asia.

The six that are available from next March will be used to operate eastbound flights, connecting the US, Europe, Japan and India to Shanghai, Shenzhen and other points in Asia.

Posted: 25/10/2004

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