FedEx Express said that itwill offer next-business-daydomestic express service inChina beginning May 28,2007.

The new domestic offeringwill connect businesses bothwithin China and aroundthe world. The new domesticservices, expected to be fullyoperational in June 2007, willserve China’s burgeoningmarket with next-businessday,time-definite deliveryservice to 19 cities and aday-definite service to morethan 200 cities throughoutthe country. Real-time packagestatus tracking will letcustomers know where theirshipments are every step ofthe way.

Like the US express huband-spoke system, which FedExpioneered, the domesticexpress network includes ahub-and-spoke system centeredat Hangzhou XiaoshanInternational Airport, locatedin East China’s ZhejiangProvince. The newlyestablished hub will initiallybe able to sort up to 9,000packages per hour.

A domestic carrier, OkayAirways, will provide thedomestic air transportation.Using three Boeing 737freighters, Okay Airways willoperate an air cargo domesticnetwork within China in supportof FedEx. The aircraftwill operate two circularroutes nightly, covering thecountry’s major airports.