CASE The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. FedEx wia produce superior snancial retams for shraouners by prosiding high value-added spply chain, cransportador, business, and related information services throngh focused operaring brmd. companies competing collecniely, and managed collaboranuely, wender the respected FedEx FedEx Mission (Escerte) We serve the evoling dismibution, logistics, and commerce needs of owr customers worldwide, offering excellence and wal in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long temm competitive return to our shareowners. Urs Mision statement (Enemt on June 18, 2004, the United States and China reached a landmark air-transportation agreement that quintupled the number of commercial cargo flights between the two countries. The agreement also allowed for the establishment of air-cargo in China and landing rights for commercial airlines at any available airport. The pact represented the most dramatic liberalization of air traffic in the history of the two nations, and FedEx Corporation and United Parcel Service, Inc. (UPS), the only US. all-cargo carriers then permitted to serve the vast Chinese market, were certain to be the primary beneficiaries of this opportunity. News of the transportation agreement did not come as a major surprise to most observers as US. and Chinese negotiators had been in talks since at least February. The stock prices of both companies had been rising steadily since those talks began, Northwest Airlines served China through both all-cargo and all-passenger services. This case was prepared by Robert F Bruner and Sean D.Carr as a basis for classroom discussion rather than to illustrate effective or ineffective management. The case complements "Battle for Value: Federal Express Corporation vs. United Parcel Service of America, Inc. (UvA F-1115. prepared by Robert F Bruner and Derick Bulkley. Copyright o 2005 by the University of Virginia Darden School Foundation, Charlouesville, VA. All rights reserved. To onder copies, send an e-mail to sales@dardenbusinesspublishing com. No part this publicanon may be reproduced, stored in a remieal system, used in a spreadsheet, or transmimed in any form or by any means electrovic, mechanical photocopying recording, or otherwise without rhe permission the Danden School Foundation. Rev 07A08