nefficient distribution system. Thus, the idea for Federal Express was conceived.The company began operations in September 1971with the launch of 14 small aircraft from Memphis International Airport. Its first night, it delivered 186 packages to 25 U.S. cities from Rochester to Miami (Internet). Memphis was chosen as the headquarters since it was the geographical center of the original target market cities for small packages. In addition, the weather in Memphis was excellent, in that the airport rarely closed due to poor conditions. Memphis International Airport was also willing to make the necessary improvements for the operation and had additional hanger space readily available (Internet).Four short years later, profiting began in 1975. Federal Express was quickly becoming the premier carrier of high priority goods in the marketplace and has been the standard setter for the industry it established. The company’s growth gained rapidly following air cargo deregulation in 1977, which allowed FedEx to use larger aircraft, such as the Boeing 727’s and McDonnell-Douglas DC-10s. In the recent years, it has acquired McDonnell-Douglas MD-11s and Airbus A-300s and A-310s for use in its operations (Internet). Perry 8Theory behind FedEx “It was just a term paper. You know how it is in your undergraduate days. You leave everything to the last minute. That’s the way this paper was written. But I sure had the right idea in pointing out that the air freight industry’s future was by no means assured. The passenger route systems used by most air freight shippers were totally wrong for freight distribution. The costs would not come down with volume. It was a technical and economic impossibility. Airfreight would only work in a system designed specifically for it”(APO 35). Unfortunately, Smith’s professor found the idea of the paper was good, but put together in a sloppy manner.The p...
