Airbourne Express

During the nineteen eighties Airborne Express took account of itself and decided to take the big boys on head to head. The company sought to redefine, or maybe simply define for the first time, its image with the American public. Airborne Express set out with an aggressive advertising campaign to attract the so-called occasional customer, and expand its market share by cutting into Federal Express and United Parcel Service’s. Unfortunately for Airborne Express, the cost of gaining a few “occasional” customers outweighed the benefits. Thus, they were forced to redefine themselves, this time as a niche player serving large corporate clients with high volume. This led to great success as long as the market remained mostly stateside and these large corporate clients were satisfied with the overseas services offered by Airborne Express.

Of course, the economy has really turned global, and those large corporate clients have a growing demand for one company that can do it all. This has led Airborne Express to a crossroads concerning its commitment to the global market. The company has embarked on a strategy

of buying space on other carrier planes, and has found this to work just fine. However, the market is changing and new challenges may make this strategy infeasible.

Next, while the company needs to refine its overseas strategy, this may not be the best time to make capital investments due to the looming recession (Cooper & Madigan), as well as the recent airline tragedy, which will effect air travel and the global economy. Thus, simply predicting future customer needs in order to refine its strategy will be a major challenge.

This relatively small and unsophisticated operation all changed in 1977 when the government deregulated the airline industry and provided the company an opportunity to expand. The company entered the air express industry by leasing, and later buying, the services of Midwest Charter in Wilmington, Ohio. The purchase of the small airline included the airport in Wilmington, which is now used by Airborne Express as the hub. In addition to its fleet of planes that operate domestically, Airborne Express owns or contracts with over 12,000 delivery vehicles that transport packages to customers. Together with their airfreight, these ground deliveries, which are far less costly than airfreight, have helped Airborne Express grow into the third largest express shipping company behind United Parcel Service and Federal Express.

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