The President 's Delivery For The Air Cargo Deregulation Act Essay

807 Words Oct 23rd, 2016 4 Pages
Fed Ex began delivery in 1973 (Parnell, 2014). What was originally an overnight and second-day delivery service to 22 major cities in the U.S. has blossomed into a diverse portfolio of transportation, e-commerce, and business solutions where air, ground and sea networks cover more than 220 countries and territories (FedEx, n.d.). FedEx was the first major air transport company to implement a “hub and spoke” system, where all packages would enter a central location and be redistributed to their final destination (Parnell, 2014). According to Parnell (2014), Fedex lobbied for the Air Cargo Deregulation Act which successfully helped to change the face of the airline industry as we know it today and spurred Fedex’s growth rate by exponential amounts. The Air Cargo Deregulation Act allowed FedEx to use larger aircraft (FedEx, n.d.).
By the 1980’s FedEx was miles in front of their competition but knew that in order to stay in that position in the market, they would have to move into international territory so they purchased Tiger International and carriers in Japan and Italy (Parnell, 2014). According to the FedEx website (n.d.), when the company integrated the Flying Tigers network with that of their own; they doubled their international volume, became the world’s largest full-service, all-cargo airline. This was because of the addition of 21 countries, a fleet of Boeing aircraft, facilities throughout the world, and the expertise that Tiger had in international airfreight…

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