While many major passenger airlines are trying to return toprofitability by shrinking their flight schedules, Federal ExpressCorp., the pioneer in overnight, coast-to-coast package delivery, aimsto become bigger by flying farther faster—faster, in fact, than thespeed of sound.
The company is discussing with Air France and British Airways thepossibility of leasing two or more of their Concorde supersonictransports. If agreement is reached, Federal Express hopes to beginflying small (under 73 Ibs.) high-priority packages across theAtlantic. According to one plan now under study, the Federal ExpressConcordes would fly from Washington's Dulles airport to Shannon,Ireland, where subsonic jets would pick up bundles and whisk them tomajor European cities. A package leaving Washington at 9 p.m.could arrive in Paris by 9 a.m. the next morning, despite losing sixhours in time-zone changes. On the trip back through those same timezones, a shipment could leave Paris at 9 p.m. and reach Washington by10 p.m.that night.
Mainly because it uses about four times as much fuel per passenger as a747, the Concorde has been a money loser since its maiden flights in1976. The British and French governments now subsidize it at a rate ofroughly $90 million a year. The Socialist government of France'sFrançois Mitterrand is considering grounding the prestige plane.Officials of the two nations will open talks next month on thepossibility of ending, or at least severely curtailing, Concordepassenger flights.
The plane's dismal record, however, does not deter Frederick Smith, 37,who in 1973 risked a personal inheritance of $3.5 million to launchFederal Express. Smith believes the Concorde's revenues could morethan double if he converted it from passenger to package service. Sayshe optimistically: "It is a potentially lucrative venture."If Smith is right, the Concorde may eventually become more than just awinged white elephant.
