Fedex Inks New Long-Term Deal With Blue Dart

Don't want to miss the best from Business Standard?

US courier major Federal Express has signed a new long-term contract with Blue Dart, replacing the existing one. The new contract was signed on May 7, this year at Brussels by top FedEx and Blue Dart officials.

In an e-mail message sent yesterday (May 19) to all managers across the country, Blue Dart managing director Clyde Cooper said: Blue Dart and Federal Express signed a long term contract at Brussels on the 7th of May, 1997, replacing the existing contract with a new design.

Federal Express spokesperson in Dubai, Nathalie Amil, when contacted refused to disclose much expect confirming FedEx is on a major expansion drive. The agreement with Blue Dart is going strong. The expansion drive in India is in corroboration with Blue Dart, she said.

However, she refused to comment when asked about renewing the contract that expires on October 31, 1997.

Following the speculation that the relation between Blue Dart and FedEx is on the rocks, in the e-mail message, Cooper said: Though so as to avoid further gossip and speculation, I have decided to make a limited announcement for internal communication purposes only.

After mentioning about the agreement, he further said, I am sure that you will recognise as a powerful statement of the future. I am also sure that all of you are eager for the details but would request you to be patient for a while more.

The message further said, You may feel free to share this news with our own bonafide employees. FedEx and Blue Dart have been negotiating a new contract for some time now.

There was strong speculation initially that the tie-up was off and that FedEx is planning to go it alone. Through its Mauritian subsidiary, FedEx had also set up a liaison office in Mumbai. Yesterday, in a full page advertisement, FedEx announced that expansion plans warranted a recruitment drive.

Nathalie Amil said FedEx needed people as they were expanding but their future plans would be with Blue Dart.

Industry sources said it is quite possible that the new arrangement between FedEx and Blue Dart called for the US major using just Blue Dart delivery agents.