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How Fred Smith Built FedEx Into World’s Biggest Cargo Airline

Father of the air express industry remembered as hands-on executive who traded wide range of aircraft.

Eric Kulisch

Tuesday, June 24, 2025 at 11:00 AM ET

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Edited By: Steve Spears

Fred Smith launched FedEx Express in 1973 with a fleet of 14 Dassault Falcon converted business jets. [Courtesy: FedEx]

Key Takeaways:

FedEx founder Fred Smith, who recently passed away at 80, transformed the company from a small startup with a few jets into the world's largest air cargo airline and a global commerce facilitator.
Smith was a hands-on executive known for his uncanny ability to make strategic aircraft deals, expertly building FedEx's fleet from initial Dassault Falcons to a diverse array of cargo planes.
The company experienced monumental growth, expanding from a struggling startup with 400 employees to a global enterprise employing over 500,000 people and moving nearly $2 trillion in goods annually.
Despite vast successes, Smith also encountered notable failures, such as Zapmail, an ambitious fax-based document delivery service that was ultimately rendered obsolete by the widespread adoption of personal fax machines.

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The rise of FedEx Corp. from a startup express carrier with a few aircraft to the largest air cargo airline in the world and facilitator of global commerce is one of the remarkable stories in American business history. Fred Smith, who founded and led the company as CEO for nearly 50 years, died Saturday at the age of 80.

Former employees said he was a hands-on executive with an uncanny eye for making aircraft deals.

Eric Kulisch

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com