FedEx also signed an option, which will permit the company to use land at the Diosdado Macapagal International Airport, formerly known as Clark Air Force Base, to be used for future expansion in the Philippines if the company chooses.
FedEx has maintained its Asia Pacific hub at Subic Bay since 1995. The Subic Bay facility is the largest air express hub in the region and represents one of the company’s most important investments.
Subic Bay Metropolitan Authority (SBMA) Chairman Felicito Payumo signed the extension contract that will commence on Sept. 1, 2007, with Dennice A. Wilson, FedEx vice president for Planning and Engineering for its Asia-Pacific operations.
"SBMA and FedEx are happy with the extension of the lease contract for the next 10 years," Payumo said, adding that the "SBMA-FedEx signing is a loud statement of confidence in the country and the administration of President Arroyo."
Payumo also explained that the option to use the Diosdado Macapagal International Airport in Clark in addition to Subic becomes a strong possibility if FedEx opted to operate bigger aircraft like the A-380 that requires longer airport runway.
FedEx is also considering expansion opportunities in China. Las December, FedEx signed a framework agreement with the Guangzhou Airport Authority to explore opportunities for growth in this dynamic part of the world.
"Our outstanding performance across the region and exceptional results in China indicate that our current operations at Subic Bay may not be able to support our projected growth," said David L. Cunningham Jr., president of FedEx Express, Asia Pacific Division. "Therefore we have signed an agreement with Diosdado Macapagal International Airport that reserve land through 2006 and continue to hold discussions with the Baiyun airport in Guangzhou, China as potential future hub locations."
"The airport facilities at Subic Bay, DMIA and the new Baiyun airport at Guangzhou all have excellent facilities and the government of the Philippines and China are committed to building their economies and attracting foreign investments," said Cunningham.
"These extensions and agreements do not commit FedEx to any long-term decisions but provide flexibility for future expansion."
FedEx has increased its five plane operations in 1998 to 12 planes. Recently, the SBMA has completed its ramp expansion to accommodate up to 20 planes.
FedEx, a subsidiary of FedEx Corp. connects areas that generate 90 percent of the world’s gross domestic product in one to three business days with door-to-door, customs-cleared service and a money-back guarantee.
The company’s unmatched air route authorities and infrastructure make it the world’s largest express transportation company, providing fast, reliable and time-definite transportation of more than 3.1 million items to 215 countries each working day.
FedEx employs approximately 138,000 employees and has more than 50,000 drop-off locations, 643 aircraft and approximately 43,000 vehicles in its integrated global network.