FedEx Corp. announced April 6 that its FedEx Express unit signed an agreement to acquire its Hungarian global service participant, Flying-Cargo Hungary Kft. The transaction, which is the latest step in the company's Eastern Europe expansion strategy, will give FedEx a wholly-owned operation in one of the region's dynamic markets.
Flying-Cargo, a privately-held company, has been the FedEx global service participant in Hungary since 2003.
"Since the mid 1990's, Hungary has proven to be one of the standout economies in Eastern Europe, with import and export growth rates of up to 7% projected until 2009," said Robert W. Elliott, president of FedEx Express, Europe, Middle East, Africa and Indian subcontinent. "Due to increased demand from global customers, opportunities offered by local economic development, and most importantly, the outstanding team on the ground delivering services, the decision to acquire Flying-Cargo was seen as the next logical step in the ongoing development of our business in Hungary."
FedEx Express began serving Hungary in 1990 using global service providers. Since that time it has continued to play an important role in connecting Hungary to the world, including:
- the launch of four weekly flights from Budapest to the FedEx European hub in Paris in 2004, improving transit and pick up times for customers;
- introduction of a classified "Dangerous Goods" express service to and from Hungary;
- introduction of a next-day service within Europe and to the U.S., and;
- initiation of two to three business-day service to Asia.
