Tag: FedEx

Air Canada drops Shanghai service

Posted by | Jul 9, 2007 | |

China’s boomtown has turned sour for Air Canada Cargo. At the end of June, the airline returned a leased MD-11 freighter to World Airways and scrapped its all-cargo flights between Shanghai and Toronto.

Withdrawing the all-cargo service marks the culmination of Air Canada’s retrenchment on the Pacific. The airline launched Shanghai freighter service in spring 2005 with two leased MD-11s, operating five days a week between the Chinese city and Toronto. Last October, however, the disappointing peak season prompted management to return one MD-11 to World and scale back the other two to three flights a week.

This April brought another step back from Air Canada’s Asian ambitions when the carrier canceled an order for two 777 cargo aircraft. Scheduled for delivery in the second half of 2009, those planes were earmarked mostly for trans-Pacific operations.

A major reason has been the increase in freighter operations between Shanghai and North America. U.S. carriers Polar Air Cargo, UPS and FedEx have used new traffic rights this year to step up their Shanghai flights. Moreover, Chinese carriers are increasingly targeting the North American market.

Since last fall, Shanghai Airlines and Yangtze River Express commenced U.S. flights with 747 freighters, and Jade Air Cargo is poised to start a 747-400 freighter operation from Shenzhen through Shanghai to Vancouver and Houston this month.

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FedEx could lure private equity interest

Posted by | Jul 9, 2007 | |

FedEx Corp. could become a target for private equity buyers because of its modest valuation and turnaround potential, Barron’s reported in its July 9 issue.

With an enterprise value of USD 35 billion, FedEx is valued at about six times expected fiscal 2008 earnings before interest, taxes, depreciation and amortization, or Ebitda.

The attraction for buyout firms would be the potential to cut capital expenditures to help finance a deal as well as the opportunity to turn around ailing retail unit FedEx Kinko’s.

Even without a buyout, which Barron’s said may not be imminent or even likely, FedEx shares should perform fine on their own, the investor weekly said.

FedEx shares, which are essentially flat this year, closed on Friday at USD 110.84.

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Fedex Express to cease Kaohsiung cargo flight services

Posted by | Jul 7, 2007 | |

FedEx Express, will close its Kaohsiung air cargo transportation line July 27 after 12 years of service, according to the company’s branch office at the Kaohsiung International Airport.

Despite of the closure, the company stressed that their cargo transportation services in the southern Taiwan region will not be affected, and that their southern Taiwan posts will continue to receive orders.

FedEx opened the Kaohsiung route Sept. 4, 1995, with its cargo aircraft plying the route from the southern port city to Subic Bay in the Philippines via Taiwan Taoyuan International Airport in northern Taiwan five times per week.

However, according to corporate sources, cargo loads are limited at the Kaohsiung airport. Besides, Taiwan’s two largest airlines — the China Airlines and EVA Airways — also operate cargo flights out of the airport and reach many of the same destinations in Southeast Asia.

FedEx executives stationed at the airport confirmed the decision to cease Kaohsiung cargo flight operations, but declined to explain why.

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FedEx to pull out of Taiwan's port city Kaohsiung

Posted by | Jul 7, 2007 | |

FedEx Corp, will pull out of Taiwan’s port city and industrial centre Kaohsiung later this month.

FedEx will operate its last flight out of Kaohsiung International Airport on July 27 and relocate staff to other cities, the China Times reported.

FedEx made the decision to quit Kaohsiung – Taiwan’s second- largest city after capital Taipei and the island’s industrial centre – because business has been declining every year in recent years.

FedEx has been serving Kaohsiung for 12 years, currently operating five weekly cargo flights to the airport. Compared with the peak days, FedEx’s business in Kaohsiung has fallen 30 per cent.

The decision to pull of Kaohsiung was made in FedEx’s US headquarters, and would not affect FedEx’s service in Taiwan or the interests of customers.

Taiwan’s economic competitiveness has been declining fast in recent years, in part due to the island’s five-decade ban on direct sea and air trade with China.

Taiwan’s business sector has been calling on the government to open air and sea links with China, but the government said the bans must be eased gradually for national security.

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Bowling Green to host new FedEx distribution center

Posted by | Jul 7, 2007 | |

FedEx will begin construction on a 48,000 square foot facility in Bowling Green, Kentucky.

LCM Company, based in Lexington, Ky., was awarded the design and construction contract of the new FedEx Ground Home Delivery Packaging and Distribution Center. The cost of the project is estimated at USD 3 million.

The new facility is part of a USD 1.8 billion expansion plan by the company that will double FedEx’s daily package capacity.

The FedEx Ground Division is a business-to-business provider. The Home Delivery Division is dedicated to serving residential customers.

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