FedEx to expand Asian hub

FedEx to expand Asian hub

MANILA (Dow Jones): Federal Express, a leading air express delivery service provider, is planning to expand its operations in the Subic Freeport, which serves as hub for its Asian operations, an official said on Friday.

John Allison, FedEx vice president for operation planning and engineering in Asia Pacific, told reporters the company will be adding eight more planes to its existing fleet of 12 aircraft currently servicing Asia.

He said while the U.S. remains the company's biggest market, the Asia-Pacific region is where FedEx is experiencing its fastest growth.

"Even with the Asian crisis (1997-1998), the growth rate remained stable at 20 percent to 30 percent, although more goods were being shipped out rather than brought into Asia," Allison said.

He expects FedEx will generate annual revenue of 152 million pesos over its new seven-year contract to operate in Subic, a former U.S. naval base converted by the government into a special economic zone and free port.