UPS Continues Asian Expansion

UPS, which operates the world’s 11th largest airline, according to the Independent Pilots Association (IPA), will add 200 pilots by the end of 2005 to support growth and expansion. This is in addition to new hires of 100 pilots announced in October 2004. UPS is in ongoing contract discussions with the IPA which represents 2,500 UPS pilots.

The company also announced it would acquire 11 MD-11 aircraft from the former Swiss International/Swissair fleet. The aircraft will be converted to freighters by Boeing and will be delivered to UPS from the first quarter of 2005 through 2007. UPS currently has 15 MD-11 aircraft in service and this will bring to 28 the total MD-11s in service or on order.

UPS is also slated to receive 13 Airbus A-300s during 2005 and 2006 and plans to put 10 A-380s in service by 2009.

One force behind the fleet expansion is the additional 12 flights to China UPS that were authorized starting in 2005.

In other news, UPS announced it would add three new distribution centers in China, in Shanghai, Suzhou and Futian.

The addition of a 160,000-square-foot facility in the Wai Gao Qiao Free Trade Zone in Shanghai brings to approximately 400,000 square feet the space UPS operates in Shanghai. A 240,000-square-foot bonded warehouse will be located in a free trade zone in Futian. And, a 66,000-square-foot facility designed specifically for high tech customers will be opened in Suzhou.

UPS plans to open another 20 facilities in major cities in China over the next two years – 10 in 2005 and 10 in 2006.

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