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.