FedEx Acquires Flying Tiger Line

FedEx Acquires Flying Tiger Line refers to Federal Express's $880 million purchase of Tiger International, parent of the Flying Tiger Line, agreed in December 1988 and completed when the airline merged into Federal Express in August 1989.

1989 United States

What happened and why it matters

The deal turned Federal Express from a mainly domestic overnight carrier into a global air network. Flying Tiger was then the world's largest all-cargo airline, and the purchase gave Federal Express flying rights to 21 countries and territories, including markets such as Japan, London and South America that it had struggled to enter, plus 39 aircraft and about 6,500 employees. Merging two very different workforces and fleets was difficult, but it gave FedEx the international reach to compete with DHL. Brands shipping cross-border parcels today rely on networks built this way, because international air traffic rights are tightly negotiated between governments.

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