Blue Dart Agreement

: Blue Dart breaks its alliance with Federal Express. The current agreement, which expires on September 30, is unlikely to be renewed. However, FedEx`s India office denies such a move. Birender Ahluwalia, Marketing Director, Indian subcontinent and Middle East, “For us, the agreement is still in the works on October 1st.” As part of the agreement, while Blue Dart markets India-linked FedEx packages on the domestic market, FedEx markets international packages booked by blue darts customers in India. Blue Dart has been linked to Jelco Express Co since its inception in 1983. In 1984, Jelco was acquired by FedEx worldwide, which led Jelco to become a partner of Blue Dart. According to Mirchandani, Blue Dart is considering all options open to the company after October 1. It should be noted that since blue Dart acquired cargo aircraft, now three in total, the company plans to become a regional player by linking India to Bangkok, Kaulalumpur, Singapore, Colombo, Dhaka and Dubai. ECONOMY TIMES (INDIA) August 10, 2002 BLUE DART, FEDEX TO END ALLIANCE “The chances of blue darts connecting to another international major are slim, as all the major international players already have ties in India,” says one competitor. The main reason for the breakup of the alliance, which was one of the oldest in the Indian courier industry, would be the premium prices of Blue Dart. According to industry, the split could lead to a significant breach in Blue Dart`s current tax revenues, as the FedEx alliance has made a significant contribution to the company`s revenue. “Blue Dart`s expansion plans to South Asian markets are independent of any reliance on FedEx. Blue Dart will continue to use its huge domestic customer base to obtain international business,” said Mirchandani.

According to Industry Sources FedEx, the very low prices offered for the distribution of its packages in India has been offered by small courier companies that are desperate to get FedEx business. FedEx has decided to invest more in India and move away from the agreement with Blue Dart Express, India`s largest national courier company. After their contract expires in September 2002, the world`s largest airline will go alone to explore India`s fast-growing logistics market, industry representatives said.