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."
"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.
