Shipping Competition Intensifies: US Co UPS to Operate Direct Flights to Israel

UPS, which operates 530 aircraft to 200 destinations, will compete with FedEx, El Al, CAL, KLM, and Belgian company City Bird.

US shipping group UPS, the biggest shipping company in the world, will start operating regular direct flights to and from Israel, “Globes” has learnt. The company, founded in 1908, operates 530 aircraft and handles about 13 million packages a day. It operates flights to 200 destinations, has a fleet of 156,00 vehicles, and employs 330,000 staff around the world.

UPS is following in the footsteps of US shipping company Federal-Express (FedEx), which started operating flights to Israel three years ago. FedEx operates flights between Israel and Europe, and from Europe to the US.

UPS Israel general manager Lior Sagie said that, excluding flights, the company has 29% of the export shipments market, and 20% of the import shipments market. UPS Israel has a 60-vehicle fleet and a computerized operating system deployed in five branches around Israel. It employs 260 staff.

UPS Europe president John D. Warwick, who has come to Israel, met with the executives of leading shipping companies.

UPS’s decision to launch direct flights to Israel was taken against the backdrop of FedEx’s decision to expand its operations in Israel.

Shipping at Ben Gurion Airport increased by 13% in the first half of 2000, compared to the corresponding period last year. 178,000 tons were shipped in January-June 2000, compared to 157,500 tons in the corresponding period in 1999.

Published by Israel's Business Arena on 2 October, 2000

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