The company made another significant transition in 1994, adopting the name “FedEx” as its official brand. The acquisition included routes to 21 countries, a fleet of Boeing 747s and 727s, facilities throughout the world, and Tigers’ expertise in international airfreight. When it integrated the Flying Tigers network on August 7, 1989, Federal Express became the world’s largest full-service, all-cargo airline. In another major move, Federal Express acquired Tiger International Inc. In 1988, the company initiated direct-scheduled cargo service to Japan. The following year, Federal Express marked its first regular scheduled flight to Europe.
In fiscal year 1983, it reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside 10 years of startup without mergers or acquisitions.įollowing the first of several international acquisitions, intercontinental operations began in 1984 with service to Europe and Asia.
Its growth rate was compounding at about 40 percent annually, and competitors were trying to catch up. Today FedEx Express has the world’s largest all-cargo air fleet, including Boeing 777s, 767s, 757s, and MD-11s and Airbus A-300s and A-310s.īy the 1980s, Federal Express was well established. These changes were important, because they allowed the company to use larger aircraft (Boeing 727s and McDonnell-Douglas DC-10s) and spurred its rapid growth. In the mid-1970s, Federal Express was a leader in lobbying for air cargo deregulation, which was legislated in 1977. Though the company did not show a profit until July 1975, it soon became the premier carrier of high-priority goods in the marketplace and set the standard for the express shipping industry it established. cities from Rochester, New York, to Miami, Florida. That night, 14 small aircraft took off from Memphis and delivered 186 packages to 25 U.S. The airport was also willing to make the necessary improvements for the operation and additional hangar space was readily available.įederal Express officially began operations on April 17, 1973, with 389 team members. and because Memphis International Airport was rarely closed due to bad weather. Memphis was chosen because of its central location within the U.S. Although the bank denied his proposal, Smith kept the name because he thought it was memorable and would help attract public attention.Ĭompany headquarters later moved to Memphis, Tennessee. He also hoped the name would resonate with the Federal Reserve Bank, a potential customer. Smith named the company Federal Express because he believed the patriotic meaning associated with the word “federal” suggested an interest in nationwide economic activity. Thus the idea for Federal Express was born: A company that has revolutionized global business practices and that now defines speed and reliability. With his term paper in mind, Smith set out to find a better way. While operating his new firm, he saw firsthand how difficult it was to get packages and other airfreight delivered within one to two days. In August 1971, following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Arkansas. Smith’s professor apparently didn’t see the revolutionary implications of his thesis, and the paper received just an average grade. He proposed a system specifically designed to accommodate time-sensitive shipments such as medicine, computer parts, and electronics. Most airfreight shippers relied on passenger route systems, but those didn’t make economic sense for urgent shipments, Smith wrote. In the paper, he laid out the logistical challenges facing pioneering firms in the information technology industry. Smith wrote a term paper that invented an industry and changed what’s possible. In 1965, Yale University undergraduate Frederick W.