FedEx finally launches Chinese air cargo hub

After being forced to delay the launch of its $150m air cargo hub at Guangzhou Baiyun international airport, FedEx received its first operational flights into the facility last week.

After being forced to delay the launch of its $150m air cargo hub at Guangzhou Baiyun international airport, FedEx received its first operational flights into the facility last week.

FedEx initially planned to open the hub in December, which was built to replace its current facility at Subic Bay, but postponed this to 6 February when it received a Boeing MD-11 from Paris.

While the complex is operational, it is not yet officially open.

A FedEx spokesperson said: “This is after all a complex project so we wanted to make sure things are operating smoothly every step of the way to ensure high quality of service for customers before we are to officially announce its opening.”

Once the facility is officially open, FedEx “will decommission its facility at Subic Bay, Philippines, in due course”.

The Baiyun complex was planned to replace Subic Bay when FedEx ordered Airbus A380 freighters to replace its existing Boeing MD-11s because the European-made aircraft was too large to land at Subic.

The Airbus order was cancelled and FedEx ordered 15 Boeing 777 freighters, exercising an option for a further 15 aircraft last month. Flight crews said the move to Guangzhou was still necessary because the 777s, which can carry up to 103 tonnes, were also too big to land at Subic.

FedEx was also forced to cancel its five-year deal with China’s Okay Airlines centred at Hangzhou’s international airport; about 200 km from Shanghai, to provide domestic air cargo express services in China following financial difficulties at Okay Airlines.

FedEx used three Boeing 737 cargo aircraft from Okay, under a deal that was agreed in June 2007, to help provide next morning and day-definite courier services to more than 200 cities in China. FedEx has teamed up with Yangtze River Express, part of the Hainan Airlines group, to maintain its domestic air express network.

However, there has been brighter news after FedEx Express launched a new Airbus A310 freighter flight to Hanoi, the Vietnamese capital, last September in the face of increased demand for air express services.

The move strengthened the FedEx AsiaOne network, which provides more than 400 intra-Asian flights per week connecting 19 cities.

FedEx has been hit both by the global downturn and ongoing difficulties launching its Asia cargo hub at Guangzhou’s Baiyun international airport in southern China.

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