FedEx launches direct China-India service
FedEx has introduced direct cargo flights between India and China. The move is designed to meet increasing demand for express services between the two Asian countries.
A FedEx Airbus SAS A310 will now fly between Guangzhou and Mumbai/New Delhi five times a week.
Speaking in a Bloomberg television interview, David Cunningham Jr., Asia-Pacific president of the FedEx Express, said that the operator is expecting “dramatic growth in trade” between the two countries.
China had previously mapped out a target to increase trade with India to $100bn over the next four years.
“We’re connecting all of Asia to Mumbai and Delhi and back. China is, from a domestic standpoint for the past 20 years and likely for the future, going to continue to be one of the fastest-growing economies in the world,” added Cunningham in the interview.
The service commenced on Tuesday and is the latest move by FedEx to strengthen its network in India.
In November, the company said it will acquire the logistics, distribution and express businesses of AFL Pvt. Ltd. and its affiliate, Unifreight India Pvt. Ltd.
The acquisition is aimed to give FedEx a “more robust domestic ground network and added capabilities in India”, the company said.
FedEx expects that this transaction, which is subject to customary closing conditions, will close in its third fiscal quarter, which ends next month.
“The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market,” said Michael L. Ducker, COO, FedEx Express.
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