Business as usual despite FedEx departure
The Closure of hub operations of FedEx in Subic won’t have a major effect on the Philippine business.
The Closure of hub operations of FedEx in Subic won’t have a major effect on the Philippine business, but low demand caused by the global economic slowdown have forced the local FedEx franchisee to reduce flights in the coming months.
FedEx is moving its Asia-Pacific delivery center to southern China. — AFP “There will be no substantial effect,” said Alberto D. Lina, owner of FedEx franchisee Airfreight 2100, Inc., when asked if there would be changes with the departure of the Memphis, Tennessee firm from the former US naval base.
In statement yesterday, FedEx said Manila and Cebu would remain part of the “FedEx AsiaOne” overnight delivery network.
The network covers the region’s major trading centers: Auckland, Bangkok, Beijing, Guangzhou, Ho Chi Minh, Hong Kong, Jakarta, Kaohsiung, Kuala Lumpur, Osaka, Penang, Seoul, Shanghai, Shenzhen, Singapore, Sydney, Taipei, and Tokyo.
Five hundred FedEx employees lined up on the side of the runway of the Subic Bay International Airport and waved goodbye in an emotional send-off for the last scheduled FedEx flight, at 6:15 a.m. Friday, on the taxiway-C of the airport.
FedEx is moving its new Asia-Pacific delivery center to the Guang-zhou Baiyun International Airport in southern China.
Slated to open by the first half of the year, the new FedEx hub in China, the company’s largest outside the US, will service 30 Asia-Pacific countries.
FedEx made the decision to discontinue its Asia-Pacific hub in Subic and move to China in 2004.
This was brought about by the much larger market in mainland China compared to the Philippines, as well as better and larger facilities offered by the Chinese government.
The new hub in Guangzhou is expected to speed up service with 11 flights weekly through three major gateways: Beijing, Shanghai and Shenzhen.
FedEx’s lease contract for its Subic hub ended in 2007. Around 800 workers in Subic lost jobs with the departure of FedEx.
But more than the exit of FedEx, Mr. Lina said weak demand brought by the global economic slowdown spells more worries for Airfreight 2100.
Mr. Lina said Airfreight 2100 was undergoing “route consolidation,” or flight frequency reductions based on current demand. He declined to be specific. Airfreight 2100 may also trim down its spending for this year.
