FedEx Express Air Operations Overview April 25, 2017

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FedEx Express Introduction

Jim Tisdale – Managing Director, Aircraft Engineering, Planning & Performance

Jim Clarke – Managing Director, Supply Chain Management

Justin Brownlee – Managing Director, Propulsion Maintenance

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FedEx Corporate Overview

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FedEx Express Fleet

B777 - 16 remaining on order B767 - 72 remaining on order B757 – passenger-to-freighter

complete

Engine Types 757: RB211-535E4, PW2037 767: CF6-80C2B6F 777: GE90-110B A300: CF6-80C2A5(F), PW4158 A310: PW4152, CF6-80C2A2 MD10: CF6-6D, CF6-50C2 MD11: CF6-80C2D1F, PW4462

Fleet Apr-16 Apr-17 ∆ A300 68 68 0 A310 9 6 -3 B757 108 116 8 B767 32 45 13 B777 27 30 3 MD11 63 57 -6

MD10-10 32 26 -6 MD10-30 10 13 3

Total 349 361 12

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FedEx Express Air Operations Personnel

Total Personnel 8,250 • Aircraft Maintenance Technicians 2,500 • Pilots 4,500 • Support Staff 1,250 (Materiel, Engineering, Quality Assurance)

Committed to Industry Success • Airlines for America – Engineering, Maintenance & Materiel Council • Society of Automotive Engineers – Aerospace Tech Council • SAE A-10 Aircraft Oxygen Equipment Committee • AEEC General Session • AEEC Datalink User Forum • AEEC DFDR Subcommittee • EUROCAE WG-90 • All Structures Working Groups • Aging Aircraft Working Group • RTCA

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Current Projects

767 Large Display System (LDS) NextGen Compliance MD11 Flight Management System Features & Enhancements 777 Fire Suppression System Reliability Enhancements (All Fleets) through Predictive Analytic Techniques Tablet Technology for Line and Base Maintenance Parts Manufacture Approval (PMA)

• FedEx Express does accept PMA. • PMA acceptance requires active involvement and data exchange with the

vendors engineers with the FedEx Express aircraft engineers.

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FedEx Express Maintenance Locations

FedEx MEM – A300/A310 B-checks, 767 L checks, 777 B-checks, MD11 B-checks

FedEx LAX – MD10 & MD11 C-checks

FedEx IND – MD10 B-checks, 757 B-checks

VT/Mobile Aerospace – MD10 Special Visits, A300/A310 C-checks, A300/A310

Special Visits

Flight Star (Jacksonville, FL) – 757 C-checks, 757 HUD line, 767 HMV

ST Aerospace/Singapore – 777 C-checks, MD11 C-checks, 777 Special Visits

VT/San Antonio – A300/A310 C-checks, MD11 Special Visits

Gameco (Guangzhou, China) – A300/A310 C-checks, 767 L Checks/HMV, 757 B-

checks C-checks for APAC fleet

LHTL Shannon (Shannon, Ireland) – 757 B-checks & C-checks for European fleet

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Supply Chain Management – Measuring Success

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Product of Successful Teamwork

Key Customer measurements

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Supply Chain Management – Standardized Data

Standard Reporting Through AEX

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Supply Chain Management – Contract Performance

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Supply Chain Management – Improving Process

Process Improvement is required Labor Intensive for everyone with minimal return

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Supply Chain Management – Next Steps

Past – Basic Supply Chain Management

Future – Move to a Time On Wing measurement Provide Vendors incentives to keep parts on wing Benefits: Reduces FedEx Inventory Reduces the number of Line Removals Challenges: Hard to measure Long time to influence a change

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Team Approach to Propulsion Management Focused teams working together to cover engineering, production, planning and analysis

Engine Team Leader

Works across FedEx departments to achieve comprehensive, integrated management of propulsion systems

Serves as the primary FedEx liaison with external propulsion maintenance / repair suppliers

Monitors, measures and reports overall propulsion system fleet(s) status

Directs the management of propulsion maintenance and repair activities

Develop and maintain Engine Maintenance Expense Budget & Guess

Develop and maintain Capital reporting

Supplier sourcing / contract negotiation support

Support Base Planning and Aircraft Acquisitions with financial inputs

Support of ad-hoc operational, strategic and financial analyses

Propulsion Analyst Powerplant Engineer

Controls engine configuration and modification standards

Provides technical oversight of engine shop visit workscopes and approves deviations

Identifies chronic on-wing engine reliability and performance concerns and develops corrective actions

Develops and maintains engine regulatory compliance documents

Engine Shop

Vendors

Mx Control

A/C Maintenance

A/C Records

Engine Fleet Team approach leads to focused collaboration on each engine model

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Borescope Severity Index is a tool that is used to document and track the Hot Section internal engine health. Instead of simple pass/fail inspection, inspectors provide engine health

information based on a calibrated rating system based on AMM limits

1 = Like New, 2 = Light (wear, crack, burn-through, etc), 3 = Moderate, 4 = Heavy

Borescope Severity Index (BSI) Recording and tracking engine health to optimize removal planning and time-on-wing

2 3 4

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Borescope Severity Index (BSI) Inspection Work Instruction Cards include qualitative condition assessment

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Borescope Severity Index (BSI) Job Aids assist inspectors in assigning ratings

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Borescope Severity Index (BSI) BSI Rating tracked for each engine; utilized in removal planning decisions

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FedEx Express Air Operations

Thank you for your

attendance!