Following the passing of Fred Smith on 21JUN25, regional politicians in Memphis, Tennessee, USA, launched an initiative to rename Memphis International Airport (MEM) in his honor. The legendary business magnate, entrepreneur, investor, founder, president and CEO of integrator FedEx contributed significantly to the city’s success. The renaming of MEM, which is unanimously supported by the relevant Republican and Democratic committees, still needs to be approved by the Washington FAA.
Without Fred Smith, Memphis Airport would be one out of many in the USA, at best of regional importance in terms of passenger and cargo flights. But the city hit the jackpot when Fred Smith and his 1971-founded company, Federal Express, moved from Little Rock, Arkansas, to Memphis, Tennessee, to orchestrate night flights for parcel distribution across the States. The fleet at that time consisted of 14 P2F-converted Dassault Falcon jets propelled by Smith’s vision to transform the shipping industry. Today, FedEx is by far the largest employer in the city of 635,000 inhabitants on the lower reaches of the Mississippi River.
A logistics aficionado
Although the idea was brilliant, the beginning was tough. Exactly 186 packages were loaded on board the first flight in 1973. The revenue achieved did not even cover the flight fees and fuel costs. Only a short time later, the young company was on the verge of bankruptcy, but the revolutionary hub-and-spoke system Smith had introduced for the overnight transportation of urgent express shipments finally prevailed, changing the logistics world completely.
While as a student at Yale University, his auditor thought little of his business idea: “Your hub-and-spoke scheme sounds good in theory, but it won’t work in practice,” he warned, giving Smith’s thesis in economics a C grade, i.e. barely passed. Rarely has a university lecturer been so wrong in his judgment.
Internationalism vs isolationism
Meanwhile, FedEx transports more than 15 million shipments across the globe every single day. It covers the entire value chain from express to special products, e-commerce, live animals, aircraft components or pharmaceuticals. The international focus of his company also shaped his political stance. Even during Trump’s first presidency, Smith criticized his isolationist policy which was completely at odds with the idea of globally interconnected markets and therefore harmful to producers and consumers.
In his obituary, FedEx President & CEO Raj Subramaniam pointed to Smith’s vast horizons: “Frederick W. Smith pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations. I will miss not only his visionary leadership, but his trusted friendship and counsel.”
Until his passing, Smith was FedEx’s largest single shareholder with around 8% of the company’s shares. His son, Richard W. Smith, is CEO of the FedEx-owned airline.
Honorary engagements
Smith served on the boards of several large public companies — Malone and Hyde (AutoZone), First Tennessee, Holiday Inn, EW Scripps, and General Mills — and charitable organizations including St. Jude Children’s Research Hospital and the Mayo Foundation. He was chairman of the Board of Governors for the International Air Transport Association (IATA) and chaired the executive committee of the U.S. Air Transport Association.
Driven by competition
But one thing eluded him: it was his ambition to overtake U.S. archrival, UPS, in terms of volumes and sales. When it comes to publicity, however, FedEx won the contest. The breakthrough came with a movie. In Robert Zemeckis’ brilliant screenplay Cast Away, a FedEx freighter stranded near a Pacific island with actor Tom Hanks playing the role of a leading manager of the integrator. Despite the freighter crash, it was a hugely successful film for FedEx, giving the integrator’s brand an additional boost across the world. Ironically, the Memphis-based integrator was only director Zemeckis’ second choice, since he first intended to team up with UPS. But its management opted for a no-go, stating that “a UPS freighter never crashes.” Tragically, ten years after the premiere of Cast Away, on 03SEP10, a UPS B747-400F crashed near Dubai, one hour after takeoff. The cause was a fire ignited by lithium batteries on board the Boeing Jumbo. The two pilots did not survive.
