FEDEX TO LAUNCH EUROPEAN SERVICE EXPANSION

   Federal Express, the air express division of Memphis-based FDX Corp.,
plans to announce an expansion of its European operations at an opening
ceremony for its new $200-million hub facility in Paris next week.
   FedEx said it will expand its European flight schedule to support the
introduction of a new intra-European delivery service called Euro One,
which will offer guaranteed overnight delivery by 10:30 a.m. between 38
major European cities.
   FedEx also plans to replace its six B727 freighters flying in Europe
with Airbus A310 freighters that offer more capacity and meet the strictest
international noise standards.
   The new expansion strategy, which targets high-end intercontinental air
express business, comes after FedEx shut down its intra-European operations
earlier this decade in the face of huge losses.
   FedEx will face even stiffer competition for international intra-European parcel traffic now, since Europe’s postal companies, notably
Deutsche Post, have greatly expanded their international networks in the
past two years.