In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate.
Federal Express was so-named due to the patriotic meaning associated with the word “Federal,” which suggested an interest in nationwide economic activity. At that time, Smith hoped to obtain a contract with the Federal Reserve Bank and, although the proposal was denied.
The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, Federal Express delivered 186 packages to 25 U.S. cities from Rochester, NY, to Miami, Fla.
1973
On the first night of continuous operation, 389 Federal Express employees and 14 Dassault Falcon jets deliver 186 packages overnight to 25 U.S. cities?and the modern air/ground express industry is born.Though the company did not show a profit until July 1975, it soon became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.
