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Subject category: Marketing
Authors: Leo Paul Dana (Nanyang Business School (NTU))
Published in: 1999
Length: 23 pages
Data source: Published sources

Abstract

Federal Express had spent more that US$1 billion to acquire air routes in Asia, and until 1998, it was the dominant cargo airline linking Australia with the United States. Then, the situation changed when Trans World Airlines (TWA) and United Parcel Service (UPS) entered joint marketing agreements with Air New Zealand and Qantas Airways respectively. In 1998, Air New Zealand and TWA launched code-shared trans-Pacific cargo flights. That same year, Qantas and UPS began sharing a Boeing 747-F (jumbo freighter) between Sydney, Australia and Louisville, Kentucky (the hub of UPS). Suddenly the market leader found itself faced with the possibility of losing market share. Executives were face with decisions to make, such as whether or not Federal Express should react and how.
Location:
Industry:
Size:
Large
Other setting(s):
1998

About

Abstract

Federal Express had spent more that US$1 billion to acquire air routes in Asia, and until 1998, it was the dominant cargo airline linking Australia with the United States. Then, the situation changed when Trans World Airlines (TWA) and United Parcel Service (UPS) entered joint marketing agreements with Air New Zealand and Qantas Airways respectively. In 1998, Air New Zealand and TWA launched code-shared trans-Pacific cargo flights. That same year, Qantas and UPS began sharing a Boeing 747-F (jumbo freighter) between Sydney, Australia and Louisville, Kentucky (the hub of UPS). Suddenly the market leader found itself faced with the possibility of losing market share. Executives were face with decisions to make, such as whether or not Federal Express should react and how.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1998

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