Press Releases
Hong Kong, July 23, 1996 - Given the recent comments by the Japanese
Government and the vast opportunities and improvements in the cargo
market for Japanese cargo carriers under an April agreement, Federal Express
stated today that it was quite surprised that the Japanese Government has not
moved away from restricting FedEx operations over the previous three years.
"During the last round of negotiations, the Japanese indicated that they
believed the two countries' abilities to compete for the US cargo market had
been equalized," Mike Ducker, Senior Vice President for FedEx's Asia Pacific
Division, said.
In an interview that was quoted on April 17, 1996, Transport Minister
Yoshiyuki Kamei stated: "With the agreement, equality between the two
nations in the area of air cargo services has been substantially achieved for
the first time in 43 years since the bilateral civil aviation treaty was signed."
Additionally, in an article published on April 23, the president of Japan
Airlines (JAL) was quoted as stating: "I welcome the results of the cargo talks,
since the talks achieved equality and a more liberal framework between the
two nations."
Mr Ducker added, "Despite the clear obligation of the Japanese Government
to accept schedules filed by FedEx for routes which were to begin on July 1,
Japanese authorities have notified the US Government regarding Japan's
unwillingness to accept the proposed revisions to the FedEx schedule.
"Japan has imposed sanctions in the form of denying 'beyond points'. The
US Government has stated that it will, in turn, respond by countermeasures.
This is a government-to-government dispute that goes beyond FedEx filing
its schedule. The big losers in this are Japanese consumers and Japanese
industry. They will be deprived of important additional service options in
the rapidly growing Asian marketplace."
While the countermeasures that the US Government has proposed are a
good first step, they in no way compare to the kinds of sanctions that the
Japanese have already imposed, according to Mr Ducker. "The threat of
additional sanctions is clearly out of line," he said.
Federal Express is the world's largest express transportation company,
providing fast and reliable services for more than 2.5 million items in 211
countries each working day. The company employs more than 122,000 people
and operate 557 aircraft, almost 37,000 vehicles and over 350,000 PowerShip®
and FedExShipTM automated systems in its integrated global network. Federal
Express reported revenues of US$10.3 billion for its fiscal year ended
May 31, 1996.
FedEx currently services the Asia Pacific market with more than 3,000
employees in 30 countries and territories. The company provides the most
extensive trans-Pacific air lift of any major competitor with wide-bodied MD-11,
DC-10 and A310 aircraft flying daily, linking its FedEx AsiaOne network for overnight
delivery to major commercial and financial centers throughout Asia. It is the
only express transportation carrier in the world using its own aircraft and crews
to provide an integrated service into and out of the People's Republic of China.
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