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FedEx to Build New Hub in Germany

Old 08-06-2007, 11:27 AM
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Default FedEx to Build New Hub in Germany

http://biz.yahoo.com/bizj/070806/1502156.html?.v=1

FedEx to build new hub in Germany
Monday August 6, 12:36 pm ET

FedEx Express will build a new ramp and sorting facilities at the Cologne Bonn Airport in Germany in 2010, the company said Monday.
The new 164,000-square-foot hub will replace FedEx Express' existing German gateway at Frankfurt's airport.

A subsidiary of FedEx Corp. (NYSE: FDX - News), which is based in Memphis, FedEx Express will develop the hub with Cologne's airport operator, which will share in the costs, says Denise Lauer, a spokesman for FedEx Express. FedEx and Flughafen Köln/Bonn GmbH have signed a cooperation agreement. Lauer declined to disclose terms of the deal. Construction costs were also unavailable.

FedEx said rapidly growing demand for express services in Germany and Eastern Europe have prompted the company to build the new hub.

"In order to be able to provide the highest possible quality in all our services to our customers worldwide, we need to expand our hub capacities," said Michael Mühlberger, vice president of operations for FedEx Express Central & Eastern Europe. "Due to a potential ban on night flights, the Frankfurt/Main location cannot provide FedEx with long-term planning reliability."

FedEx will maintain a presence in Frankfurt in the future. However, the company said that Cologne's airport holds a number of benefits, including air traffic capacity of 698,000 tons a year. The second-largest cargo airport in Germany is also close to highways, railway transportation and the river Rhine.

Published August 6, 2007 by the Memphis Business Journal
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Old 08-06-2007, 01:05 PM
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Manfred told me a year ago that he thought FedEx would move their entire European hub to CGN. He stated several reasons:

1. It doesn't have a curfew (like FRA does)
2. Better weather than FRA
3. UPS is there
4. Cheaper landing fees than FRA

And although he didn't say it specifically ... I suspect there would be fewer labor issues than in CDG.

On a different subject ... I wonder how a CGN FDA might look like?


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Old 08-06-2007, 01:12 PM
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Like a side letter to the LOA the day before closing. Trying to get guys that want Germany to ratify the LOA.
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Old 08-06-2007, 01:26 PM
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Talking Maybe it is the STV they wanted

Maybe the reason for the minimal two year move is so that they wouldn't have to move someone (whole CBA package) to France....then move them again (whole package) to Germany after CDG shuts down.

Figured at Narrow Body Pay, no one would bid France so they would just use STV till the shutdown....maybe that is why the provision for STV for a time when the FDA opens, and when they shut an FDA down.

didn't want to pay those pesky French taxes anyway under equalization. What is the tax rate in Germany? Maybe cheap like HKG....don't know.

Said tongue in cheek, but compelling none the less.

Sleepy, if I have this wrong....feel free to call me, we can discuss it. Bwahhhhhaaaaahhaaa.

Just kidding brother....you are between a rock and a hard place and I appreciate your work....tough these days when even your best friend Albie is asking the pointed questions.

Remember the ones that do any kind of intervention are the loved ones of the folks that are making poor decisions.....
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Old 08-06-2007, 04:35 PM
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Originally Posted by RockyTopFlyer View Post
http://biz.yahoo.com/bizj/070806/1502156.html?.v=1

FedEx to build new hub in Germany
Monday August 6, 12:36 pm ET

FedEx Express will build a new ramp and sorting facilities at the Cologne Bonn Airport in Germany in 2010, the company said Monday.
The new 164,000-square-foot hub will replace FedEx Express' existing German gateway at Frankfurt's airport.

A subsidiary of FedEx Corp. (NYSE: FDX - News), which is based in Memphis, FedEx Express will develop the hub with Cologne's airport operator, which will share in the costs, says Denise Lauer, a spokesman for FedEx Express. FedEx and Flughafen Köln/Bonn GmbH have signed a cooperation agreement. Lauer declined to disclose terms of the deal. Construction costs were also unavailable.

FedEx said rapidly growing demand for express services in Germany and Eastern Europe have prompted the company to build the new hub.

"In order to be able to provide the highest possible quality in all our services to our customers worldwide, we need to expand our hub capacities," said Michael Mühlberger, vice president of operations for FedEx Express Central & Eastern Europe. "Due to a potential ban on night flights, the Frankfurt/Main location cannot provide FedEx with long-term planning reliability."

FedEx will maintain a presence in Frankfurt in the future. However, the company said that Cologne's airport holds a number of benefits, including air traffic capacity of 698,000 tons a year. The second-largest cargo airport in Germany is also close to highways, railway transportation and the river Rhine.

Published August 6, 2007 by the Memphis Business Journal
Is this going to be a hub (not a gateway). Will it replace CDG?
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Old 08-06-2007, 04:40 PM
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Originally Posted by UPSAv8tr View Post
Is this going to be a hub (not a gateway). Will it replace CDG?
We will be the last to know. Sometime after the paper makes the anouncement that pilots are going, our MEC will tell us about the deal they cut.
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Old 08-06-2007, 05:50 PM
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But if they can't pass this LOA, they will have more issues than not.

Vote NO, no to STV, no to poor planning!
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Old 08-06-2007, 06:54 PM
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DW actually mentioned this before last weeks hub meeting. From what I remember, sounded like Manfred had it right, at least reasons 1 - 4.
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Old 08-07-2007, 03:56 AM
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Originally Posted by UPSAv8tr View Post
Is this going to be a hub (not a gateway). Will it replace CDG?
My understanding from Robert (via Manfred) is that Cologne only replaces FRA due to landing/T/O curfew and will not replace CDG. For what its worth......
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Old 08-07-2007, 05:16 AM
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These flights are scheduled to be flown with german speaking Taiwanese.
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