EXHIBIT 15.1

December 16, 1998

Federal Express Corporation
2005 Corporate Avenue
Memphis, Tennessee 38132

We are aware that Federal Express Corporation will be incorporating by 
reference in its previously filed Registration Statements No. 2-74000, 
2-95720, 33-20138, 33-38041, 33-55055, 333-03443, and 333-49411 its Report on 
Form 10-Q for the quarter ended November 30, 1998, which includes our report 
dated December 16, 1998 covering the unaudited interim financial information 
contained therein. Pursuant to Regulation C of the Securities Act of 1933, 
that report is not considered part of these registration statements prepared 
or certified by our firm or a report prepared or certified by our firm within 
the meaning of Sections 7 and 11 of the Act.

                                                 Very truly yours,

                                                 /s/ Arthur Andersen LLP

                                                 Arthur Andersen LLP