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UPS Expands Air Network in China
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| UPS Airlines, launched in 1988, is the 9th largest airline in the world. For more information about UPS Airlines, view our UPS Airlines media kit.
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Launches Direct Flights to Europe; Adds Flights in Shanghai and Qingdao
SHANGHAI, April 6, 2006 - UPS (NYSE:UPS) today announced the start of
direct air service from Shanghai to Europe along with the addition of three
new flights connecting Shanghai to the U.S. and another new flight between Qingdao
and Incheon, Korea.
"UPS now flies to more points in China than any other U.S. airline, freight
or passenger," said David Abney, president, International Operations.
"These new flights are part of our strategy to expand our service options,
stay ahead of customer needs and solidify our position as the leader in the
world's fastest growing market."
UPS will utilize MD-11 aircraft to fly from Shanghai to Cologne five times
a week. In addition to the new service to Europe, UPS has added three new frequencies
on its Shanghai-U.S. route, increasing to nine times per week the number of
non-stop flights on that lane. The number of UPS flights into Qingdao, a major
port and manufacturing center, now has increased to six per week.
The airline's growth is part of a broader effort to accelerate global
trade and offer new service options to customers. Already the world's
largest package delivery service and among the largest of logistics companies,
UPS in recent months has doubled the size of its air hub in Cologne, Germany;
begun expanding its network reach inside China and Japan; expanded its intra-Asia
air hub in the Philippines; is nearing completion of a new 425,000-square-foot
freight and logistics hub in Singapore; is developing a new air hub in Shanghai,
and has re-engineered its U.S. ground network to accelerate the delivery of
more than half-a-million packages every day.
Last year, UPS became the first carrier in the industry to acquire direct control
of its operations inside China. That move came at a time when China export volume
surged 50% over 2004. Export volume for all of Asia jumped almost 30% in 2005.
Today, UPS provides customers in China with wide access to markets in China,
Asia and around the world by operating a network of 194 flights per week.
The company also launched a domestic express package service inside China last
year. And just last month, the company expanded its international express service
to 22 more business locations in China, bringing to 330 the number cities served
in the country. Those cities account for roughly 85% of China's international
trade. UPS China currently operates 75 facilities, deploys more than 1,400 vehicles
and employs more than 4,000 people. Later this year, UPS plans to enter the
retail sector in Shanghai by introducing UPS Express Centers to provide customers
with more service options.
UPS also is stepping up its work as the Official Logistics and Express Delivery
sponsor of the Beijing 2008 Olympic Games. In this capacity, UPS provides logistics
consultation and assistance to Beijing's organizing committee. UPS also
will provide express delivery services to all venues specified by the organizing
committee for the duration of the Games. UPS Supply Chain Solutions opened seven
new logistics facilities in China in 2005 and is constructing additional facilities
this year.
"It's a given that the pace of business just keeps accelerating
and you have to work hard to keep up," said Mike Eskew, UPS's chairman
and CEO. "But what makes me so proud of this organization is that at a
time of record growth, the men and women of UPS not only are keeping up but
raising the competitive bar and building capabilities that will ensure the highest
levels of customer service for decades to come."
UPS is the world's largest package delivery company and a global leader
in supply chain services, offering an extensive range of options for synchronizing
the movement of goods, information and funds. Headquartered in Atlanta, Ga.,
UPS serves more than 200 countries and territories worldwide. UPS's stock
trades on the New York Stock Exchange (UPS), and the company can be found on
the Web at UPS.com.
# # #
Except for historical information contained herein, the statements made in
this release constitute forward-looking statements within the meaning of Section
27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange
Act of 1934. Such forward-looking statements, including statements regarding
the intent, belief or current expectations of UPS and its management regarding
the company's strategic directions, prospects and future results, involve certain
risks and uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward-looking statements, including
economic and other conditions in the markets in which we operate, governmental
regulations, our competitive environment, strikes, work stoppages and slowdowns,
increases in aviation and motor fuel prices, cyclical and seasonal fluctuations
in our operating results, and other risks discussed in the company's Form 10-K
and other filings with the US Securities and Exchange Commission, which discussions
are incorporated herein by reference.
For more information, contact:
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