Fedex Express : A Cargo Airline

1444 Words Nov 14th, 2014 6 Pages
FedEx Express is a cargo airline that was founded in 1971 by Frederick Smith in Memphis Tennessee. The company is managed under the umbrella of FedEx Corporation, and it is one of the largest express companies in the world. Due to its rapid growth, FedEx Express has gone through several acquisitions and mergers with different cargo and logistic companies throughout its history, not only in domestic markets, but also internationally. In 1987, FedEx Express made the acquisition of Island Courier, and later in 1989, acquired Flying Tigers to serve the Caribbean and Latin America becoming South America 's largest air express transportation company. As a result of these acquisitions, the Latin America and Caribbean Division (LAC) was established in Miami to oversee the operations of 50 countries. Hereafter, FedEx Express LAC has undergone several important acquisitions, but the biggest and most recent one was in 2012 the acquision of Rapidao Cometa in Brazil. According to Boone, an acquision happens when “a company purchases another existing firm in the host country, allowing a largely domestic business operation to gain an international presence very quickly” (Boone, 2013, pg. 120). When a company wants to grow, diversify, enter new markets, go international, or improve its current performance, it can be done through foreign licensing, strategic alliance, subcontracting, by creating a joint venture, merging or acquiring an existing company, among others. Companies have to…
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