UPS Jetair Express, the domestic arm of the world’s largest express carrier, has entered into a strategic sales alliance with AFL in tier 2 and 3 cities.
MUMBAI: UPS Jetair Express, the domestic arm of the world’s largest express carrier, has entered into a strategic sales alliance with AFL to boost its presence in tier 2 and 3 cities.
AFL’s 28-year-old partnership with DHL will come to an end on December 31, 2007 as the deal comes into effect. After that, AFL Wiz Express will promote UPS through its network in more than 200 cities. In return, AFL gets to take international export shipments on behalf of UPS for the countries it serves.
While UPS Jetair Express will continue to operate as an international express delivery service provider connecting India with the global marketplace, AFL will continue to function as a domestic service provider connecting businesses across India.
Cyrus Guzder, chairman and managing director, AFL, said: “DHL had started acquiring companies that were our competitors in India and so we did not wish to continue with DHL and both the companies mutually agreed to not renew the agreement.”
DHL acquired Blue Dart in 2004 which have it access to the latter’s domestic network through road and air.
Through the AFL-DHL alliance, AFL was operating on all its network cities except 11 metro cities, where DHL had its own operations. However, in the new alliance, while most of the agreements details are same as that with DHL, AFL-UPS would operate in all cities including the metros.
AFL has no plans to acquire air freight carriers. Instead, the company is planning a minority stake in an about-to-be-launched company called Quikjet, promoted by a Singapore-based NRI, R Natesham.
The new entity positioned to be an air freight forwarding company would acquire air carriers, which can be accessed by AFL for their domestic business.
“We have promised to take about 10-12% of the stake in Quikjet, the financials of which are yet not finalised,” said Guzder.
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