FedEx Express makes further inroads in India

FedEx recently announced that its FedEx Express subsidiary has launched a new flight from Bengaluru, India with direct connections to Europe, the Middle East, and the United States. This is the company’s third India-based gateway—Delhi and Mumbai are the others.

FedEx officials told LM this expansion is in line with the company’s strategy to facilitate continuous growth of India’s trade along with meeting customer needs. They added that South India is already witnessing a strong growth and contributes to around 20 percent of India’s GDP with a market potential of 24 percent.

“Our expansion is aimed at increasing the region’s competitiveness and its ability to trade at global platforms,” said Baerbel Bussenius, Manager External Communications, FedEx Express Europe, Middle East, Indian Subcontinent & Africa. “The new flight will also allow us to continue to provide the best solutions and greater value to our customers, consequently tapping the enormous potential this region poses,” Bussenius added that this flight launch is a major investment for FedEx in the region and has been carefully planned over the last months.

Along with the new flight out of Bengaluru, FedEx Express also announced that the FedEx premium domestic express delivery service is expanding its next business day service from 14 to 58 origin cities over a period of several months, effective this month.

This service was launched in October 2009, servicing 14 origin cities and 58 destination cities. Over the last ten months, the service has gained more than 2,500 new customers, which, Bussenius said, reflects the acceptance of the service by domestic shippers.

Both of these announcements are expected to significantly enhance manufacturing and distribution practices of India-based businesses for various reasons,  said Bussenius.

With more than 300 million people expected to move up from the category of rural poor to rural lower middle class between 2005 and 2025, the rural consumption levels in India are expected to rise to current urban levels by 2017, according to data from the India Brand Equity Foundation (IBEF). And the rural consumer market, which grew 25% in 2008, is expected to reach $425 billion (in U.S. dollars) in 2010/2011, IBEF said.

“Higher consumption levels require reliable transportation,” said Bussenius. “The expansion of our premium domestic services will offer customers in new and emerging markets access to a superior FedEx service that will ensure reliability, customized services, peace-of-mind and visibility at a competitive price.”

And the new flight out of Bengaluru will accelerate the development and empower major industries in the Southern region, Bussenius added, as businesses will now have efficient and faster access to some of the biggest marketplaces in the world, thus improving competitiveness.

Prior to this flight launch, companies operating from cities such as Bengaluru, Hyderabad and Chennai were impeded in their ability to do business globally with shipments transferred to Mumbai via commercial air or ground services. With the new flight launch, shipments will be transferred to Bengaluru via truck and from there they will join the FedEx linehaul. The flight will also provide unconstrained space facilitating the movement of bulk and heavy shipments as well as dangerous goods shipments

FedEx officials said FedEx is the only air express transportation company with 21 international weekly flights to an from India, as well as the only international air express service provider to have direct flights out of South India.

The expansion of our domestic services will help us strengthen our foothold in India whilst bolstering the trade lane domestically,” said Bussenius. “We believe this will help us reinforce the FedEx leadership in India.”