Mumbai, June 11: Federal Express Corporation (FedEX), the world's largest express transportation company, will enter the Indian air express market through a new agreement with Blue Dart, India's express company. FedEX will begin operations in India from September this year, subject to clearances from the Director General of Civil Aviation.

Under the new five-year agreement, FedEX will start five times a week DC-10 flight service linking Mumbai to its global network, FedEX Europe vice-president (sales) Robert W Elliot announced here on Tuesday. While FedEX will focus solely on developing its international business, Blue Dart will continue to service its own domestic and international customer base as a licensee of FedEX.

The Indian partner will be the exclusive provider of pick-up, domestic transportation, customs clearance and delivery services for FedEX Priority shipment. FedEX will invest in technology, customer and sales personnel.

"This will allow us to penetrate the heavy packages segment in India. We will also be uniquely positioned to meet the needs of exporters and importers in India. They will have access to a wider range of FedEX services along with Blue Dart's established infrastructure and strong market coverage," Elliot said.

Blue Dart mangaging director Clyde Cooper said the joint partnership would offer a new level of service for Indian shippers.

"The relationship would enable us to reap the full benefit of India's increasing integration into the global market place."

The entry of FedEX into the country would have no impact on operations of Blue Dart, he added.

Both parties put to rest the speculation that differences had recently plagued the relationship. "We have been together since 1984. It's been a happy marriage," said Hamdi Osman, managing director, operations for FedEX, middle east and Indian subcontinent.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.