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Express giants see value in new base

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The new airport in Guangzhou has made the city more attractive for air express companies to make it their hub, although none has done so yet.

Air express company FedEx Express signed a Framework Agreement with the Guangzhou Baiyun International Airport Company in December with the intention of making it its Asia Pacific hub, but the plan was changed when the Philippines made concessions to keep FedEx in the country, including giving the American company 'seventh freedom' rights, which allows a carrier to fly to other destinations from a hub without first passing its home base.

FedEx Express president, Asia Pacific, David Cunningham said the company was still considering how best to expand its hub operations in Asia.

'We are very impressed with the new Baiyun's excellent facilities, strong management and well-structured plans for future growth,' he said, without expanding on FedEx plans for Guangzhou.

Rival air express company DHL said it would also invest heavily in Baiyun, and aimed to make its network there comparable to its US$100 million hub in Hong Kong.

DHL chief executive, Asia-Pacific, John Mullen said: 'Baiyun will grow in importance, and we will be part of that.'

The recently sealed Sino-US air services agreement includes a key concession in providing 'seventh freedom', which allows carriers to ship cargo from the mainland to other Asian destinations without touching down in the United States.

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