ANA in challenge to DHL and FedEx
12-19-2007, 05:14 AM
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ANA in challenge to DHL and FedEx
ANA in challenge to DHL and FedEx
By Jonathan Soble in Tokyo
Published: December 19 2007 02:00 | Last updated: December 19 2007 04:37
All Nippon Airways plans to challenge DHL and Federal Express in Asia by joining forces with two Japanese transport groups to launch a door-to-door express parcel service.
The airline will take a 34 per cent stake in the venture, targeting business-to-business customers, according to a memorandum of understanding signed yesterday.
Nippon Express, the general transport company, and Kintetsu World Express will each take a 28 per cent share while other forwarding groups will take the remaining 10 per cent.
The venture is to begin operating next April. The name and total investment have not been decided.
The business will use a freight hub developed by ANA on Okinawa, close to mainland China. ANA will provide aircraft, while Nippon Express and Kintetsu will contribute ground-based logistics.
European and US delivery groups dominate the Asian express parcel market and are adding infrastructure. Germany's DHL, which leads with about a one-third share, said last month it would build a $175m north-east Asian hub in Shanghai.
Second-ranked Federal Express opened a Chinese domestic hub this year and plans to shift its Asia-Pacific centre from Subic Bay in the Philippines to a larger facility in Guangzhou in 2009.
Satoru Aoyama, analyst at Fitch Ratings, said a challenge for the ANA venture would be to draw custom from outside the three partners' roster of Japanese clients.
"To challenge the big companies they will need to invest heavily," he said.
The Financial Times Limited 2007
By Jonathan Soble in Tokyo
Published: December 19 2007 02:00 | Last updated: December 19 2007 04:37
All Nippon Airways plans to challenge DHL and Federal Express in Asia by joining forces with two Japanese transport groups to launch a door-to-door express parcel service.
The airline will take a 34 per cent stake in the venture, targeting business-to-business customers, according to a memorandum of understanding signed yesterday.
Nippon Express, the general transport company, and Kintetsu World Express will each take a 28 per cent share while other forwarding groups will take the remaining 10 per cent.
The venture is to begin operating next April. The name and total investment have not been decided.
The business will use a freight hub developed by ANA on Okinawa, close to mainland China. ANA will provide aircraft, while Nippon Express and Kintetsu will contribute ground-based logistics.
European and US delivery groups dominate the Asian express parcel market and are adding infrastructure. Germany's DHL, which leads with about a one-third share, said last month it would build a $175m north-east Asian hub in Shanghai.
Second-ranked Federal Express opened a Chinese domestic hub this year and plans to shift its Asia-Pacific centre from Subic Bay in the Philippines to a larger facility in Guangzhou in 2009.
Satoru Aoyama, analyst at Fitch Ratings, said a challenge for the ANA venture would be to draw custom from outside the three partners' roster of Japanese clients.
"To challenge the big companies they will need to invest heavily," he said.
The Financial Times Limited 2007
Last edited by DLax85; 12-19-2007 at 05:18 AM. Reason: Formatting
12-19-2007, 05:51 AM
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Originally Posted by DLax85
[B]
The business will use a freight hub developed by ANA on Okinawa, close to mainland China. ANA will provide aircraft, while Nippon Express and Kintetsu will contribute ground-based logistics.
The business will use a freight hub developed by ANA on Okinawa, close to mainland China. ANA will provide aircraft, while Nippon Express and Kintetsu will contribute ground-based logistics.
12-19-2007, 08:16 AM
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Usually...the first one to establish position and gain market share wins. In this case FedEx and DHL are the winners but a little competition is always good. UPS is pretty well rooted and it just seems ANA is a day late and a dollar (Yuan) short. To do what FDX does (overnight express delivery) just doesn't happen over night and it takes a lot, I mean a whole LOT, of capital to put it al together.
In the end it sounds like the customer is going to win with several companies having to delivery excellent service to compete for business. GO PURPLE!
In the end it sounds like the customer is going to win with several companies having to delivery excellent service to compete for business. GO PURPLE!
12-19-2007, 02:19 PM
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healthy banter!
purple tail;
well said and without any flames. good on ya!
(no disrespect intended at you, just warding off evil mojo from others.) hopefully the rest of the comments will go the same way. the asian market is wide open for all the cargo companies. i think that ANA is going to focus specifically on the inter-asian market, between japan and the west coast of pacific rim. the more the merrier, i say! they are getting a late start, but i'm sure they will try to throw some big money at it anyway.
let's all meet at the jet lag and help vincent become prosperous!
well said and without any flames. good on ya!
(no disrespect intended at you, just warding off evil mojo from others.) hopefully the rest of the comments will go the same way. the asian market is wide open for all the cargo companies. i think that ANA is going to focus specifically on the inter-asian market, between japan and the west coast of pacific rim. the more the merrier, i say! they are getting a late start, but i'm sure they will try to throw some big money at it anyway.let's all meet at the jet lag and help vincent become prosperous!
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