FedEx denies report on Philippine base

FedEx denies report on Philippine base

FedEx Corp. today denied a published report saying it has decided to locate its new Asia Pacific air hub in the Philippines.

A report by the Inquirer News Service of Manila quoted Adelberto Yap, president and chief executive of the Clark International Airport Corp., as saying FedEx would sign a 25-year lease agreement April 11 to build a $450 million complex near its current hub at the former military base at Subic Bay.

Earlier reports said FedEx would move its Asia Pacific base to Guangzhou, China.

"No decision has been made," a FedEx spokeswoman said. "We are holding discussions with Clark Airport and with Guangzhou, and we are interested in moving those discussions forward as we explore opportunities to expand our business in Asia."

The report quoted Yap as saying FedEx would lease a 124-acre government property in the former Clark Air Force base where it will relocate its regional hub when its contract with Subic authorities ends in 2007.

FedEx has operated the Subic hub for eight years, but has been limited in its efforts to expand. The carrier had been mulling a move to the Baiyun international airport at Guangzhou, in China's Pearl River manufacturing region.

Philippines President Gloria Macapagal-Arroyo recently signed an executive order providing for an "open skies" policy on cargo flights at Subic and Clark, enabling FedEx flights to continue on to other countries.

FedEx serves 19 major markets in Southeast Asia from its Subic base.