FedEx adding more flights to Germany

FedEx Corp. said Monday it is adding more trans-Atlantic flights, part of a plan to boost capacity to Europe.

The company said the flights from its main hub in Memphis to Cologne, Germany will allow it to better serve that country's industrial heartland.

FedEx said it will add the flights in March, bringing its trans-Atlantic total to 28 a week from 23 a week.

The increase in flights to Europe is part of a plan to capitalize on rising international express shipments.

FedEx's announcement follows one from competitor DHL that it was setting up a sorting center in Memphis. DHL is owned by Deutsche Post of Bonn, Germany.

FedEx said it will use its largest plane, the MD-11 wide-body, for the flights to Cologne.

Eye for Transport
FedEx Express increases Transatlantic capacity by 20%

FedEx Express is connecting more European cities with next day service to the US, and increasing its transatlantic capacity with the introduction of five weekly direct flights from Cologne, Germany to Memphis, Tennessee, beginning March 2005.

(11/3/2004)

Using a FedEx Express MD-11, the transatlantic Express Freighter flight will provide next business day service improvements for shippers in the industrial heartland of Germany, as well as key markets in Belgium and the Netherlands. The flight increases transatlantic capacity by 20% westbound and improves FedEx International Priority Freight® service for customers in Germany. In western Germany, shippers will benefit from later pick-up times of up to three hours.

FedEx Express already provides direct flights from Stansted, England; Paris, France; and Frankfurt, Germany to FedEx hub locations in the US.

“FedEx Express is committed to strong import and exports services to and from Europe,” said Robert Elliott, president, FedEx Express, EMEA region. “The Cologne Express Freighter flight will strengthen FedEx service to the region and show customers that FedEx is the fastest way to ship from Europe to more of the US.”

The Cologne Express Freighter flight announcement follows a series of FedEx service improvements aimed at expanding the company's network and connectivity. Over the past eight to twelve months, FedEx has opened new stations and added new flight routes throughout Europe. FedEx now connects more than 80% of the European economy to its EuroOne network, doubling its network reach over the last five years.

FedEx: delivering European expansion
Comtex BusinessComtex FinanceComtex Global NewsComtex InternationalComtex Public CompaniesComtex Wall Street 11-04-2004

Nov 03, 2004 (Datamonitor via COMTEX) –FedEx's [FDX] new German service will increase its transatlantic capacity by 20%, and reflects FedEx's increasing focus on European operations, although it still lacks the comprehensive distribution networks enjoyed by many of its rivals. The expansion also reflects FedEx's faith in the European economic recovery, which is a good omen for the whole express sector.

FedEx is to continue its transatlantic expansion with the addition of five weekly flights of an MD-11 aircraft, FedEx's largest plane, between its home hub in Memphis and Cologne in Germany, starting in March 2005. FedEx currently provides direct flights from London, Paris and Frankfurt in Europe.

The choice of Cologne appears to respond to both strategic and competitive issues. The new flights will allow FedEx to improve its 'next business day' service for companies in the industrial heartland of Germany, Europe's largest economy, as well as for businesses in Belgium and the Netherlands, markets at the center of European logistics traffic. Notably, FedEx has chosen the city where its main rival UPS [UPS] has its European headquarters and the company is scheduling its new service to leave Cologne earlier than UPS flights to the US, clearly intending to obtain the competitive advantage over its rival.

FedEx does not have a stronghold in Europe, where it lacks the comprehensive networks that rival express companies TNT, DHL and even UPS have. The company's strategy in Europe has been traditionally focused on the international segment and is primarily geared to offering competitive international transit times, shying away from competition in the domestic segment. Nevertheless, the company has significantly invested in its European operations over the last year, adding 21 distribution points, and new flights to Poland, the Czech Republic and Hungary.

The introduction of new flights from Germany to the US comes on top of this investment and seems to reflect an increased commitment from FedEx to Europe. In turn, FedEx's expansion in Europe signals the company's optimism in European economic growth and reflects the health of the airfreight industry, which is also good news for rivals UPS, DHL and TNT.

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