FedEx Express has found itself on the wrong side of a court decision in the Philippines and faces the prospect of not being able to conduct its operations anymore in the country, after the Republic’s Court of Appeals ruled to void its operating license. The court of declared as ‘unconstitutional’ the operation in the Philippines of Federal Express Pacific Inc., the Philippine express division of FedEx Corp. The court denied the company’s appeal to reverse its 23 January decision declaring FedEx is a foreign corporation and hence could not engage in international airfreight forwarding within the country. The appeal was denied on 6 June, but was only made public in late July.
The case against FedEx arose after two Philippine freight forwarding companies – Merit Freight International Inc. and Ace Logistics Inc. – questioned the CAB’s decision granting FedEx the operating permit based on the fact it is a 100-per cent foreign-owned and foreign-based corporation.
FedEx said in a statement that it intended to continue operating in the Philippines pending the decision of the Supreme Court, which has the final word in any legal case in the Philippines. The company also stressed the beneficial impact its business has on the country, saying it has increased its investment in the Republic, allocating PHP500m (US$11.6 million) to the construction of new international gateway facilities in Manila and Cebu along with new customer service offices in Clark and a district headquarters in Manila.