FedEx Express Cargo Operations

Federal Express Cargo Operations

Air Cargo Industry Decisions

J. Mark Hansen Senior Counsel Regulatory Affairs FedEx Express

FedEx Express Cargo Operations

Question 1: Why does FedEx fly over my house at Midnight, or 2:00 a.m. or 5:30 a.m.?

FedEx Express Cargo Operations

Question 2: Why does FedEx fly a Boeing 727 into our airport instead of a newer, quieter Airbus?

FedEx Express Cargo Operations

What is a System Form?

A term used to describe the planned movement of all product types throughout our Global Linehaul System. Global Linehaul System is comprised of an integrated network of trunk & feeder aircraft, & surface vehicles operating in a hub and spoke, linear & point to point transportation modes.

FedEx Express Cargo Operations

System Form Development

The fundamental philosophies incorporated within the system form plan are:

Maintain 100% service integrity Provide reliability and flexibility and,

FedEx Express Cargo Operations

System Form Development

Minimize Cost
z z z z

Flight Time Flight Cycles ( Landings/Takeoffs) Circuity (Least miles flown) Multiple aircraft flying same flight patterns One aircraft vs. two aircraft Maximize utilized load on scheduled aircraft Match lift to load

FedEx Express Cargo Operations

System Form Planning

Marketing develops volume forecast Executive Management incorporates corporate vision Operations Research enhances the marketing forecast and creates a long range plan Air Operations identifies fleet requirements

FedEx Express Cargo Operations

System Form Planning

Properties identifies facility requirements Finance identifies profitability/revenue requirements Marketing and Operations Research update forecast and provide input to Fiscal Year Linehaul Planning Fiscal Year Linehaul Planning develops Business Plan operating schedule

FedEx Express Cargo Operations

System Form Planning

Operations Research updates forecast & provides input to Domestic Linehaul Planning Domestic Linehaul Planning develops the current operating schedule

FedEx Express Cargo Operations

System Form Planning

Domestic Linehaul Scheduling coordinates current plan with operations & field engineering to enhance the current schedule Global Operations Command & Control monitors the daily operating schedule & corrects operational deficiencies or revises operating plan as needed

MEM Night Inbound

OAK Night Inbound

EWR Night Inbound

IND Night Inbound

Point to Point Night

AFW Night Inbound

Total Night Inbound

FedEx Express Cargo Operations

Flight Schedule Constraints

Geographic Coverage and Regulatory Compliance

z

Tower operations Slot restrictions Customs clearance ATC issues Noise constraints

z z z z

FedEx Express Cargo Operations

Flight Schedule Constraints

Service Commitment (time/day of delivery)

z

Zip coverage and service area Customer cutoff times

Critical departure times Critical arrival time

Legal Constraints (service guide commitments, contractual obligations)

FedEx Express Cargo Operations

Flight Schedule Constraints

Product Type Executive Vision/Direction Fleet Availability

z

Type of A/C (payload, speed, and navigation equipment) Number of A/C

FedEx Express Cargo Operations

Flight Schedule Constraints

Maintenance requirements
Scheduled maintenance z Unscheduled allocation
z

Flight Crew constraints

z

Pilot availability by A/C type

International fleet requirements

FedEx Express Cargo Operations

Flight Schedule Constraints

Facility/location constraints
z

Physical Limitations
Truck/flight interface (dock doors) Sort throughput (box,doc, & freight) Parking gates (N/B & W/B mix) Runway length

FedEx Express Cargo Operations

Flight Schedule Constraints

Flight connectivity (origins/destinations tied into hub network) Operational constraints

z z

Manpower availability Training issues (maintenance, ground support, and operational handlers) Ground support equipment Exceptions/execution

z z

FedEx Express Cargo Operations

Flight Schedule Constraints

Forecasted Volume
z z

By day of month (holidays) Lane segment volume (Origin to Destination Product volume by day of the month)

FedEx Express Cargo Operations

Flight Schedule Constraints

Fleet Balancing
z z

Balance fleet type & sub-fleet type Match lift to load: Origin/destination payloads Day versus night payloads

FedEx Express Cargo Operations

Flight Schedule Constraints

Service Recovery
z z

Flex flights Sweep flights

Financial Impact
z z

Flight hours/cycles Day of Month Plans