FedEx to cancel Okay Air contract
FedEx Express, the world’s largest express delivery company, is to end its contract with troubled Okay Airways, opting instead for Yangtze River Express, a cargo airline controlled by HNA Group, to maintain its domestic express air network. The move is yet another setback for the Tianjin-based airline, which is desperately seeking to restart its passenger […]
February 1, 2009
The move is yet another setback for the Tianjin-based airline, which is desperately seeking to restart its passenger service before the Lunar New Year after a lack of cash and disputes between its investors forced its service suspension.
The suspension of Okay Air’s passenger flights in mid-December interrupted its cargo service, forcing FedEx to end the 21- month collaboration which had originally been set as a five-year deal under which Fedex would lease three Boeing 737 freighters from Okay Air.
FedEx has reportedly been paying about US$1.9 million a month to Okay Air.