UPS and Fedex Hubs

Cosmas and Martini
16.781 Term Project
December 14th, 2007
UPS and FedEx Air Hubs:
Comparing Louisville and Memphis Cargo Hub Operations
by Alex Cosmas and Bastien Martini
The economies of scale afforded to passenger airlines by the use of a hub-and-spoke model are also
enjoyed, sometimes to an even greater extent, by cargo carriers. The world’s two largest integrated
carriers, UPS and FedEx, run their central air hubs in Louisville (SDF) and Memphis (MEM),
respectively. We present a case study of the air hub operations at SDF and MEM. The land-side
and air-side operations are contrasted between SDF and MEM, and generalizations are drawn
regarding issues prevalent to cargo versus passenger hubs.
I. Air Cargo in History
The beginning of the last century saw the dawn of flight. Since the Wright brothers’ first flight, the
transfer of goods through air mail and air freight has grown tremendously. The first cargo flight
ever took place between Dayton and Columbus, Ohio in November 1910, when a department store
shipped a bolt of silk. Even though the shipment was of small size, the flight stayed in the records
because it was achieved in less time than possible by train.
Some time elapsed before the first commercial cargo airline was created. In the 1920s passenger
carriers created entities to carry freight, but it remained a very low fraction of their business. In
fact, the first all-cargo airline was created after World War II, but bankruptcies and accidents in the
early 1950s made most of the carriers quit the business and in 1954, only two carriers remained:
Slick Airways and Flying Tigers. Until cargo deregulation in 1977, the air cargo industry faced
slow growth and remained a small percentage of air traffic.
Since 1978, the freight business has changed tremendously. One man, Fred Smith, believed that
mixing passengers traffic with freight traffic was not the future because he believed route patterns
for passengers and cargo were different. He created FedEx in 1973 and started earning profits by
his third year. FedEx’s historic rival, United Parcel Service (UPS), was created in 1907 as a
bicycle-based delivery service. In 1953, UPS expanded its business by chartering an air service
named UPS Blue Label Air, and by 1988 UPS began operating its own airline.
II. Air Cargo Industry Overview
Today’s cargo industry consists of three market segments: express or “time definite” packages
(weighing less than 100 lb.), heavyweight freight shipments (packages greater than 100 lb.) and
mail transport. Integrated cargo companies such as FedEx and UPS serve all three categories, but
there is an abundance of carriers that provide service to only one market segment. In addition,
airfreight is carried by both passenger airlines and all-cargo airlines. Passenger airlines carry freight
in the belly of passenger flights, and often operate dedicated freight aircraft. All-cargo airlines are
either classified as “Integrated Express Carriers” which provide door-to-door package deliveries, or
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“Non-Integrated Freight Carriers” which offer heavyweight freight shipments through freight
forwarders, etc. Scheduled and express freight constitute the largest proportion of air cargo
shipments, with charter freight and mail a much smaller proportion.
Figure 1 – Air Freight Revenue Ton-Miles by Carrier Type, 1994-2002 (Source: DOT Form 41)
The air cargo industry has become a major player of the air industry since deregulation. Even
though this sector has always experienced growth before deregulation, 1978 has triggered a wide
range of possibilities for the industry, as seen in Figure 1. Notwithstanding the early years after
deregulation when the industry got accustomed with new practice, air freight has experienced an
average annual growth of nearly 8% between 1982 and 2000. Due to globalization, the FAA has
forecasted this trend to continue as seen in Table 1.
Table 1 – ICAO Outlook for Air Transport to the Year 2015 and ICAO Passenger & Freight Statistics, various
years
Passenger
Freight
1992 – 1995
5.2%
9.9%
1995 – 2000
6.2%
7.3%
2000 – 2005
4.1%
3.8%
2002 – 2015
4.4%
5.5%
It is also interesting to note the difference between passenger and all-cargo growth over the last 10
years. While both classes of airlines carried similar levels of freight in 1994 (expressed in tonmiles), all-cargo airlines have experienced larger growth than passenger in every year since 1994
(see Figure 2). Freight is still forecasted to experience a higher growth rate than passenger airlines
over the next ten years, as seen in Table 1.
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Figure 2 – Air Freight Revenue Ton-Miles by Carrier Type, 1994-2002 (Data Source: FAA Aerospace Forecasts,
various years)
Despite its rapid growth, air freight still accounts for less than half a percent of the overall freight
ton-miles transported in the U.S. Waterborne, intercity trucks and rail account for nearly 99.5% of
freight tonnage shipped domestically.1 However, this data reflects the fact that ships, trains, and
trucks are used to ship bulk freight and heavy packages over long distances whereas aircraft are
used for relatively lightweight, rapid shipments. But according to the Organizations for Economic
Cooperation and Development (OECD), the value of air cargo accounts for more than 33% of the
world trade in merchandise, while its weight is only 2% of all the cargo moved world-wide.
Figure 3 – Modal Share of Domestic Ton-Miles, 1990 and 2001 (Source: Bureau of Transportation Statistics,
National Transportation Statistics 2004)
In a world where time is of increasing value, the share of air cargo share is steadily increasing.
While it accounted for only 0.3% of the cargo market share in 1990, air cargo accounted for 0.4% in
2001 and is forecasted to grow at 5.2% per year according to BTS (see Table 2), faster than any
other mode of freight shipping and an average expansion of world GDP at 3%. The world’s two
largest integrated carriers stand to shoulder much of this growth, and therefore their air hub
operations must be flexible enough to accommodate the increased demand.
1
Data Source: Bureau of Transportation Statistics, National Transportation Statistics 2004
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Table 2 – Comparison of Domestic Freight Demand Forecasts (Source: historic data from BTS, National
Transportation Statistics 2003; forecasts from sources described in report text)
a: Forecast for intercity truck only.
III. Door-to-Door Package Service
Every weekday UPS picks up and delivers 14.8 packages to over 80 percent of the globe. A good
portion of these packages are delivered within 48 hours after pickup. Both UPS and FedEx use an
advanced sort system to separate and organize volumes of packages into small, manageable piles
sorted by delivery location. The typical UPS or FedEx package follows a similar process from
pickup to delivery:2
1) Users take packages to a UPS Store or FedEx Kinko’s where the package is weighed and
labeled. Alternatively, users can print out smart labels from ups.com and fedex.com and
schedule a pickup when a delivery truck is in the area or drop the package in a local drop
box. These smart labels contain tracking codes that are tracked throughout the delivery
cycle, and account for over 90% of package labels that travel via FedEx and UPS.
2) At designated times, all of the accumulated packages from a given location travel, usually
by truck, to a local or regional sorting facility. If packages are destined further than 200
miles, they travel by air. Otherwise they travel by truck to the local receiving sorting
facility.
3) Packages that travel by air are placed into cargo containers that often weigh more than one
ton. Because the sort facilities are lined with ball bearing flooring as seen in Figure 4, UPS
and FedEx employees can move these containers with minimal effort. The containers allow
employees to work remotely with package sorting and then move packages in bulk into the
aircraft belly. The packages then head to Louisville or Memphis for further sorting.
Figure 4 – Floors are lined with ball bearings to ease the movement of cargo containers
2
Supplemented with information from “How UPS Works” at www.howstuffworks.com
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4) At the main sorting facility, humans touch each package only twice – once to unload and
once to load the package to/from the aircraft. During unload, employees scan the package
labels and place them on one of three conveyors with the labels facing in any direction
except down towards the belt. An array of lasers scans barcodes on all sides of package
while measuring the specific dimensions of the package. Weight sensors calculate the
center of gravity to better judge the number of pucks and minimum force needed to push
packages from one conveyor to another:
a. Smalls: mostly letters and other documents, each of which gets its own tray on a
conveyor belt
b. Mid-size packages: 6-sided boxes up to a certain weight and dimension get their own
conveyor belt
c. Irregs: irregularly-shapes packages are placed on flat cars and strapped down for the
sharp turns and curves around the conveyor system.
5) After approximately 15 minutes, the package travels through the UPS or FedEx hub to its
intended destination pile. Similarly-destined packages are placed on cargo containers which
are then placed onto aircraft which travel to another regional sorting facility.
6) When unloaded, the package is scanned yet again to tell employees which package car it
should be taken to, as well as which space on a given shelf the package should be placed to
optimize drivers’ time.
7) The UPS or FedEx driver uses route-planning software allows him or her to conserve time
and fuel to execute the most precise delivery route. A remote delivery device is used to scan
a package and receive a signature upon delivery. The whole process has taken less than 24
hours!
Figure 5 – Packages are placed on specific shelves in the delivery truck to optimize drivers’ time.
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IV. United Parcel Service and Federal Express
More than two-thirds of the U.S. air cargo market is controlled by the U.S.’ two largest cargo
airlines: FedEx and UPS, with the latter controlling nearly 50% of the market alone. The
international air cargo market, valued at $4.6B by Standard & Poor’s Net Advantage is more evenly
segmented between U.S. cargo carriers, although FedEx, UPS and DHL have the largest individual
carrier market shares, as shown in Figure 6.
Figure 6 – U.S. Carrier Market Share of Domestic (left) and International (right) Air Cargo Markets (Source:
Henry Fund Research, University of Iowa Tippie School of Management)
Because the cost of flying one ton of cargo decreases as aircraft size increases (since fixed costs are
spread across greater tonnage), larger freighters are quickly replacing smaller cargo aircraft. This
has resulted in a capacity increase of more than 4% per year despite a relatively constant fleet size.
This growth in aircraft size is of great importance in airport hub operations, which need to be
flexible enough to accommodate larger aircraft.
United Parcel Service has its headquarters in Atlanta, Georgia and its airline hub and largest sorting
facility called “Worldport” in Louisville, Kentucky. UPS is the world’s largest package delivery
company and a leader in supply chain management.
Federal Express is based in Memphis, Tennessee and provides a wide range of business services in
addition to its shipping operation. FedEx entered the Chinese market in the 1980’s and is therefore
better poised to take advantage of China’s being the fastest growing air cargo market in the world.
Table 3 – UPS and FedEx Corporate Statistics (Source: www.fedex.com and www.ups.com)
Market
Capitalization
2006 Revenue
Daily U.S. Air
Volume (packages
and documents)
UPS
FedEx
$80.6B
$33.4B
$39.5B
$32.3B
2.3 million
2.0 million
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Daily Int. Air
Volume (packages
and documents)
Fleet Size
Airports Served
Air Hubs
1.8 million
1.3 million
273 owned, 326 chartered
370 aircrafts + 297 small aircrafts (253
Cessna Caravan + 8 Fokker + 42 ATR)
Domestic – 424; International – 389
Domestic – 664; International – 375
• United States: Louisville, Ky. (Main
US Air Hub);
Philadelphia, Pa.; Dallas, Texas;
Ontario, Calif.; Rockford, Ill.;
Columbia, S.C.; Hartford, Conn.
• United States: Memphis, Tn. (Main
US Air Hub); Indianapolis, In; Fort
Worth, Tx; Newark, N.J.; Anchorage,
Ak; Oakland, Ca.
• Europe: Cologne/Bonn, Germany
• Europe: CDG, Paris, France
• Asia Pacific: Taipei, Taiwan;
Pampanga, Philippines; Hong Kong;
Singapore
• Asia Pacific: Subic Bay, Olongapo
City, Philippines
• Latin America and Caribbean:
Miami, Fla., USA
• Latin America and Caribbean:
Miami, Fla., USA
• Canada: Hamilton, Ontario
• Canada: Toronto Pearson, Ontario
V. Prerequisites for designating an airport as a Cargo Hub
Table 4 summarizes the major differences between passenger and cargo air services, each of which
contribute to differences in land-side and air-side operations between the two.
Table 4 – Comparison of Passenger and Cargo Air Services (Source: Yeong Heok Lee of Hankuk Aviation
University, South Korea)
Passenger Air Services
• Round Trip Service
• Unspecified Public Travelers
• No further Ramp Services
• Cabin Services
• Daytime departure/arrival
• Sensitive to time, routes and stops
• Airport-to-airport service
• Annual growth rate(passenger): 4.5%
Cargo Air Services
• One Way Service
• Limited Shippers
• Need Ramp Services: loading/unloading,
breakdown, storage, customs, etc.
• No Cabin Services
• Night departure/arrival
• Less sensitive to time, routes and stops
• Door-to-door and Intermodal service
• Annual growth rate(ton): 5.4%
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Weather
The most important factor for designating an airport as a cargo hub is weather. Because package
delivery is a time-sensitive business, consolidated shippers are dependent upon reliable air service
to keep their business running. Cargo hubs are extremely averse to closures or to reduced capacity
situations resulting from low visibility, fog, snow or strong winds.
Geographic Position
A cargo hub which is centrally located allows carriers to minimize fuel burn and transit time
between the hub and various spokes. The latter is particularly important as package customers have
come to expect not just overnight service, but late drop-off and early morning delivery. Memphis
and Louisville are both located slightly eastward of the nation’s center. This positioning allows for
reduced delivery time to the east coast for morning deliveries. The first planes take off at 2am
central time heading to Europe or the east coast, helping to compensate for the time zone change.
Figure 7 – SDF and MEM are centrally located in the US
Noise
Noise restrictions are a third major component for cargo hub designation. Runway configurations
and the layout of surrounding communities must allow for nighttime operations. Because UPS and
FedEx operate SDF and MEM primarily between 10pm and 3am, the airports must be amenable to
noise during nighttime operations. For instance, an airport with nighttime curfews or with capacity
limits cannot be used as a cargo airline hub, as DHL learned in Brussels after having purchased the
hub from FedEx ten years earlier.3
Congestion
The fourth component in choosing an airport as a cargo hub is its average and peak levels of
congestion. Even though much of their operations take place at night when passenger airlines
schedule few flights, a cargo airline schedules a significant number of flights during the day, as well
3
Casert, Raf for Associated Press, “DHL Pulls international hub out of Brussels after dispute over night flights.” Oct.
21, 2004.
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as unscheduled flights to accommodate demand. In addition, because UPS and FedEx have
ambitions to grow without having to move to another airport, avoiding congested airports is a must.
“Buyer” Power
Most importantly, and perhaps correlated with a lack of congestion, it is beneficial for a cargo
airline to have a special relationship with its hub airport managers (and the flight controllers) as the
primary customer. This relationship is most easily developed with airports where there is no
existing “major” player. This so-called “buyer” power allows a degree of leverage over other
stakeholders at the airport, and the benefit of privileged routings and take-off/landing sequences as
compared to other airlines. Louisville International is not a hub for any airline, and its secondlargest operator is Southwest with only 10% of operations. Memphis International, on the other
hand, is different because Northwest Airlines also operates a hub at the airport. However, at the
time FedEx established itself in Memphis in 1973, MEM was not a hub for any other airline. But in
1985, Republic Airlines established its hub there and was absorbed by Northwest in 1986. FedEx is
fortunate, however, that Northwest operates its hub in the daytime so routing benefits are still
granted to FedEx at night. In addition to these short-term benefits, buyer power also enables an
airline to shape airport developments and operational decisions.
VI. Differences between Cargo and Passenger Hub Operations
Cargo hub airports are inherently different to operate than passenger hubs. FedEx and UPS’ airside
operations differ from those of passenger airlines largely because of technological innovation and
test programs they are conducting in collaboration with the FAA. As is discussed below, UPS has
taken advantage of improved spacing between arriving aircraft as a result of its ADS-B pilot
program. In theory, however, passenger carriers could benefit from similar airside technologies if
they could coordinate amongst all other carriers to reach 100% equipage.
The table below summarizes what was mentioned above and compares it to the requirements for a
passenger airlines hub designation.
Table 5 – Factors leading to implementing a hub
Cargo Airline
Passenger
Airline
Reliable weather
Crucial
Important
Center Location
Important
Considered
Disadvantage
Preferable
Crucial
Low Importance
No Congestion
Important
Important
No Major Player
Preferable
Preferable
Capacity to grow
“Connecting”
buildings
City with big OD market
No Noise constraints at night
Infrastructures
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One major difference in airside operations between the two is the inability of cargo carriers to “depeak” their schedules as is currently being done by passenger carriers. Human air travelers prefer to
fly non-stop between their origin and destination airports. This is largely due to the added
inconvenience of deplaning/boarding additional planes, changing gates, risking the loss of baggage
and chasing connection times. Connections increase the total time which passengers are spending
in transit to get between two points. Therefore, if connections are needed, passengers prefer the
shortest connection possible. Passenger carriers are increasingly moving towards de-peaked
schedules in order to spread out resource utilization, to avoid triggering major delays, and to
improve the passenger experience. Consolidated cargo carrier operations depend upon gathering all
“inbound” cargo before loading “outbound” flights.
The primary airside difference is that cargo is very much an overnight operation, where packages
leave their origin in the late evening (after businesses close) and arrive at their destination the
following morning (or one thereafter). Given the nature of night-time operations, cargo carriers
must pick hubs that are situated away from communities. Furthermore, cargo aircraft leave and
arrive at their spokes at off-peak hours, which often prompts the use of sub-optimal runway
configurations. However, night-time operations have the benefit of avoiding congestion (which is
important to the time-sensitive delivery business) and of being one of the few airlines using an
airport, which allows for preferential treatment.
Land-side operations differ quite a bit between consolidated cargo carriers and passenger carriers.
First, passengers prefer comprehensive airport terminals, complete with stylish décor, restaurants
and shops, and facilities to work or relax. Cargo, which [most often] does not talk, is insensitive to
transfer flight waiting times and airport terminal services. Instead, cargo is sensitive to the cost of
trans-shipment handling and tedious aircraft changes.
Cargo carriers also face fewer safety regulations than their passenger counterparts. Under current
FAA regulations, cargo carriers “don’t have to install the same collision warning systems as those
carrying passengers, don’t have to add systems that automatically put out fires and can schedule
their pilots to work more often.”4 An analysis by the Dutch National Aerospace Laboratory in 2000
found that “there is an increased risk associated with cargo flights conducted at night compared with
daytime operations. This association could not be found for passenger operations.”5 In addition, Air
Safety Week found that “all types of accidents occur more frequently in cargo operations.”6 The
inherent risks associated with freight impacts the contingency operations and safety plans of a cargo
hub airport.
Finally, it is important to note that cargo flows are inherently unbalanced in that more flows from
Asia to North America than vice versa. For the most part, passengers must always return home and
therefore round-trip segments are commonplace for passenger carriers. Cargo carriers must often
design their networks with large circle routes that take advantage of flow in one direction. Cargo
airline operations managers certainly have their work cut out for them when it comes to contingency
planning and seasonality, but the higher yields afforded by cargo make the effort well worth it.
4
Associated Press, “Cargo, Passenger Planes Rules Differ.” September 11th, 2001.
Roelen, Alfred, Pikaar, Mijntje et. al of the National Aerospace Laboratory (NLR), the Netherlands. “An Analysis of
the Safety Performance of Air Cargo Operators.” 2000.
6
Air Safety Week: “Air Cargo: A Higher Global Risk Profile.” December 18, 2000.
5
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VII. Louisville International Airport (SDF)
Louisville International Airport (SDF) is
situated less than ten miles south of
Louisville, KY, at the corner of Interstates I65 and I-264. The location is strategic
because it is particularly well served by all
transport modes. In addition to two highways
converging at the airport, there are railroads
just east, north and south of the airport, and
the Ohio River is only 8 miles from the
airport. All transport modes can easily serve
the airport.
SDF services over 3.8 million passengers and
4.2 billion pounds of cargo per year,
rendering it the 68th busiest passenger airport
and 3rd largest cargo airport in the U.S. and
9th largest in the world. SDF classifies itself
as a low-fare airport serving travelers within a
200-mile radius of the city. The airport serves
29 destinations nonstop.
Louisville
International is situated on 1200 acres, yet the
passenger terminals comprise less than 9
acres, or 1% of the airport area.
Figure 8 – Google Map: location of SDF
Runways
SDF’s two primary runways are independent and parallel, running North-South and certified for
simultaneous operations. The third runway is shorter and generally only used in reduced capacity
situations. SDF also has over 62,000 linear feet of taxiways. The airport saw 178,439 operations in
2006.7
Table 6 – Basic Runway Data of Louisville International Airport (Source: Louisville International Master Plan)
Orientation
11/29
17L/35R
17R/35L
7
Length
Width
7,250 ft /
2,210 m
8,580 ft /
2,615 m
11,890 ft /
3,624 m
150 ft / 46
m
150 ft / 46
m
150 ft / 46
m
Separation with
17L/35R
Wind
Coverage
FAA Reference
Code
N/A
90.3%
D-V
-
91.6%
D-V
4,900 ft / 1,500 m
91.6%
D-V
Louisville Regional Airport Authority Aviation Statistics, September 2007
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Interestingly, no runway provides more than 91.6% wind coverage (Table 6). It gives an overall
wind coverage for the 3 runways of 96.8%, which is a handicapping condition for airlines, and
especially for UPS that operates at any time of the day. However, this wind coverage is based upon
a maximum of 10 knots side-wind, which is relatively little. For 20 knots, SDF’s wind coverage is
99.77% for each of its 3 runways, giving an overall wind coverage of 99.97%. Louisville also
receives less than fourteen inches of snowfall annually so snow is not a big problem for operations.
Operations at SDF are certified CAT I for both 17 runways and CAT III for both 35 runways.
Runway 11/29 has no precision instrument and can only operate under VFR conditions. Runways
17/35 are therefore the preferred runways, with 17R/35L having been recently expanded from
10,000 ft to 11,890 ft to improve the airport’s service and capacity. The runway configuration can
be seen in Figure 9.
Figure 9 – Louisville International Airport Layout and Runway Configuration
In 2007, UPS accounted for 47% of the 53,000 landings at SDF, with Southwest being the next
largest operator at 10%. US Airways, American and Delta Air Lines each had approximately 5% of
the landing share. However, UPS accounted for 78% of the total landing weight at SDF, with
Southwest accounting for only 7%.
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Capacity
Table 7 – Runway configurations for SDF (Source: SDF Master Plan)
Benchmark Rate
Weather
Configuration
Procedures
(per hour)
Arrivals only:
82
Arrivals to Runways 35L
Visual Meteorological
Visual approaches
and 35R (North Flow)
Departures only:
Conditions
78
Visual Meteorological
Conditions
Arrivals to Runways 17L
and 17R (South Flow)
Instrumental Meteorological
Conditions
Arrivals to Runways 35L
and 35R (North Flow)
Instrumental Meteorological
Conditions
Arrivals to Runways 17L
and 17R (South Flow)
Usual Night Operations
Arrivals to Runways 35L
and 35R
Departures on Runways
17R and 17L
Visual approaches
Arrivals only:
71
Departures only:
80
Instrument approaches
Arrivals only:
65
Departures only:
59
Instrument approaches
Arrivals only:
60
Departures only:
65
N/A
It is interesting to note from Table 7 that runways 17L/35R and 17R/35L operate with different
capacities depending on the direction of the flow. When wind is low and northbound, SDF’s arrival
capacity (from the north) is larger – capacity of 82 VFR and 65 IFR – compared to 71 VFR and 60
IFR for south flow arrivals. For the same reason, departure capacity is larger in a south-flow.
Relative to MEM, SDF is a much smaller airport and UPS faces air-side capacity constraints as it
continues to grow its air operation.
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VIII. Memphis International Airport (MEM)
Memphis International Airport (MEM) has
the same multi-modal access as SDF. It is
located south of Memphis, TN, at the corner
of Interstates I-55 and I-240. The location is
also served by rail, passing north east of the
airport less than one mile from FedEx’
facilities, and by boat, with the Mississippi
River only 8 miles from the airport.
Memphis International Airport (MEM) spans
3,900 acres and hosts two major airlines’
hubs: FedEx for cargo and Northwest for
passengers. Just like SDF, MEM has
constantly expanded to meet the needs of its
largest tenants. A new runway was built in
1996 to increase capacity and the airport has
invested in state-of-the-art technology on the
airfield including an advanced instrument
landing system and new technology to
address a multitude of weather conditions.
Figure 10 – Local Area around MEM (Google
Maps)
In 2005, MEM serviced 3.6 million tons (7.9 billion pounds) of freight and 11.0 million passengers
or 5.6 million enplanements (source CY05 ACAIS), making it the world’s busiest cargo airport in
the world for the 14th consecutive year8 and the 34th busiest passenger airport in the United States.9
Three carriers account for approximately 60% of total operations at MEM. Both FedEx and
Northwest each account for slightly more than 20% of the operations (FedEx also accounts for
about 50% of its landed weight), and Northwest Airlink – a regional carrier for Northwest –
accounts for just under 20% of the operations (See Appendix G for NWA presence at MEM).
8
9
Memphis-Shelby County Airport Authority 2006 annual report
National Transportation Statistics 2006, Bureau of Transportation Statistics
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Figure 11 – Memphis International Airport Layout and Runway Configuration
Runways
The airport is equipped with 4 paved runways. There are three parallel concrete runways that have
no displaced threshold and that are positioned around the passenger terminals and one perpendicular
asphalt runway to the north, adjacent to the FedEx terminal. The four runways orientations, as well
as their lengths and widths, are summarized in Table 8.
Table 8 – Basic Runway Data of Memphis International Airport (Source: Memphis International Airport web
site)
Orientation
9/27
18R/36L
18C/36C
18L/36R
Length
Width
8,936 ft /
2,724 m
9,319 ft /
2,840 m
11,120 ft /
3,390 m
9,000 ft /
2,743 m
150 ft / 46
m
150 ft / 46
m
150 ft / 46
m
150 ft / 46
m
Separation with
18R/36L
Wind
Coverage
FAA Reference
Code
N/A
93.2%
D-IV
-
97.2%
D-V
3,400 ft / 1,036 m
97.2%
D-V
4,400 ft / 1,341 m
97.2%
D-V
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Runway 9/27 provides less wind coverage and less weather coverage than the three other runways.
Additionally, it is only certified for CAT I operations whereas the three are also certified for CAT
III. Runway 9/27 is more restricted and is listed as FAA Airport Reference Code D-IV.
There is not enough separation between the parallel runways to operate them independently, but
runways 18R/36L and 18L/36R are certified for simultaneous operations when no movements occur
on the center runway. Prior to 1996, runway 18L/36R did not exist and independent arrivals were
prohibited on the parallel runways. Building the third runway has increased the capacity of the
airport, and MEM’s extension of the center runway (the current 18C/36C runway) to 11,100 ft.
better accommodates non-stop international flights.
MEM operates the runways differently during the day and at night. During the day, when passenger
carriers operate, there is no noise issue so planes preferably land on 36L, 36R and 27 and takeoff on
runways 36L and 36C. This pattern is not optimal for FedEx whose facilities are north of the
airport; aircrafts have to taxi all the way down to the beginning of runways 36 to take off. Actually,
the facility has been positioned to optimize taxi time at night when operations have higher time
value. At night, FedEx is the only carrier having operations and lands about 150 to 160 aircrafts. All
of them land from 10:30 p.m. and all take off after packages are sorted and dispatched. For noiserelated problems (Memphis is located north of the airport), flow is kept south of this airport.
Consequently, traffic controllers make FedEx planes land on runways 36 and take off on runways
18 as often as possible.
This configuration, besides mitigating noise problems, reduces taxi time to its minimum. More
specifically, arrivals are operated as follow: heavy aircrafts land on the longer runway 36C, flights
coming from the west land on runway 36L and flights from the east land on 36R10. Departures are
operated on the same pattern. Heavy aircrafts use runway 18C, flights heading to the east take off
on 18L and flights heading to the west take off on 18R. The main interest of these procedures is it
has least paths crossing in the air and on the ground, thus reducing aircraft collisions risks.
Runway 27 is used only at the beginning or at the end of the night because its operation makes the
airport capacity decrease. It decreases because the runway has lower capacity than the parallel
runways, and because when operations are in place on this runway, taxi time is increased by 3 to 4
minutes on overage due to the time FedEx planes have to wait before crossing the runway. This
configuration is only used when the airport operates at low capacity to save time and fuel for planes
heading to the west or to the north.
In addition, MEM has no airport curfew, no noise level limits and no noise surcharges. It should
also be noted that Memphis receives approximately 5.7 inches of snowfall per year, which is
important to ensure reliable operations.
10
Andrew March, MIT Masters candidate, personal communication with MEM airport manager
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Capacity
Table 9 – Frequency of occurrence of weather and runway configuration based on FAA ASPM data for January
2000 to July 2002 (excluding 11-14 September 2001), 7 AM to 10 PM (Source: Memphis International Airport)
Benchmark Rate
Weather
Occurrence
Configuration
Procedures
(per hour)
Optimum Rate
76%
Arrivals on Runways 36L,
36R, 27
Departures on 36L, 36C
Visual approaches,
visual separation
148 – 181
Below visual approach minima
but better than instrument
conditions
IFR Rate
17%
Arrivals on Runways 36L,
36R, 27
Departures on 36L, 36C
Instrument approaches,
visual separation
140 – 167
Instrument conditions
(ceiling < 1000 ft or
visibility , 3.0 miles)
7%
Arrivals on Runways 36L,
36R
Departures on 36L, 36C
Instrument approaches,
radar separation
120 – 132
Ceiling and visibility above
minima for visual approaches
(5000 ft ceiling and
5 mi visibility)
Marginal Rate
Figure 12 – Capacity envelope for MEM (Source: Memphis International Airport)
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The MEM capacity envelope is shown above (Figure 12). The airport has no capacity constraints
under any weather conditions. In addition, all four runways can operate under CAT I conditions and
the three 18/36 runways are certified for CAT III operations. This characteristic is extremely
important for FedEx because they can operate under virtually any weather condition.
Additionally, MEM has invested $800 million in new facilities. A new control tower is being built,
improvements are made to accommodate group VI aircraft (C-5 and A380-800F), but the biggest
project under development is “Cargo Central”, new facilities on the southeast corner of the airport,
offering a cargo area of 61,500 square feet, with 1.5 million square feet of ramp area to provide
better service for cargo airlines. High security, cold storage, and hazardous materials storage will
also be offered, as well as business-friendly lobbies, reception areas, front office administration and
management space.
This construction phase was triggered when the Tennessee Air National Guard (TnANG), which is
currently located near FedEx facilities on the northwest corner of the airport, announced that it will
be moving to the new Cargo Central area, freeing 103 acres for FedEx to expand its facilities. The
reallocation will improve ground activities for both parties by ensuring TnANG’s and FedEx’s
aircraft have better access to the World Runway™ (18C/36C 11,120 ft runway).
Increasing capacity through landing pattern
MEM has a landing procedure slightly more complicated than that of SDF, largely due to the fourth
runway that is mainly used by FedEx. Until April of this year, and under ideal circumstances, traffic
controllers allowed landings on the perpendicular runways 27 and 18 at the same time. However,
this controversial landing procedure has been recently stopped after two planes nearly collided.
This procedure illustrates the efforts made by both MEM and FedEx to push further the capacity
limit. Apparently, if the pilot landing on 27 aborts the landing and regains altitude, it flies directly
into the path of another plane landing on one of the 18 runways. It was revealed that the procedure
violated FAA rules and that MEM never received approval for such the procedure.
In reality, MEM traffic controllers implemented this procedure to allow FedEx aircrafts landing on
the perpendicular runway and thus minimizing taxi time – particularly long for FedEx when arrivals
are operated from the north – without affecting traffic workload for traffic controllers and to
increase capacity of the airport. Interestingly, the FAA’s air-traffic officials initially refused to stop
the procedure.
To sum up, MEM has ample capacity in good weather, can operate under almost any weather
condition and continues to invest in new facilities to provide better service for its airlines. It surely
makes MEM one of the best airports to operate a cargo hub.
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IX. UPS at SDF and FedEx at MEM
UPS Worldport
Louisville International Airport (SDF) opened UPS’ main cargo hub and sorting facility in 2002,
and has since seen constant expansion to meet the needs of its largest tenant. Worldport is situated
on the southern side of the airport, in the area carved out by the airport’s three runways. Currently,
Worldport is comprised of three cargo terminal buildings but is currently undergoing a $1B
expansion to add an additional three terminals. Worldport is too large to be air conditioned so its
exterior is painted white to reflect sunlight. The inside of the sort facility resembles an indoor roller
coaster with miles of conveyor belts and package carts running along tracks.
UPS avoids the need for crew members with flares to manually direct pilots in the taxi area. Pilots
instead steer the plane to aprons with painted outlines of the airplane. Strategically-placed mirrors
on the buildings help pilots navigate the terminal areas.
Figure 13 – UPS Worldport at SDF with planned expansion (in orange)
Worldport comprises the largest employment center in Metro Louisville, generating yearly
economic impacts of more than 43,000 total jobs and $1.8 billion in total payroll. UPS employs
thousands of college students in the U.S.’ second largest work-study program (after the Reserve
Officer Training Corps). UPS pays the full tuition of its student employees attending a local
university who are willing to work part-time throughout the year. Students work 3-4 hours per
night (scattered between the hours 10pm and 4am) and attend school during the day. It is a difficult
schedule for the students but they receive excellent benefits (medical insurance, 401k plan, paid
vacations and holidays, etc.) and earn a free undergraduate degree. In 1998, Your Money magazine
recognized UPS as having one of the “Best Part-Time Jobs in America.”
Figure 14 – UPS Worldport as seen from the west. Remote aprons are visible on the right.
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Even before UPS’ $1B upcoming expansion, Worldport’s sorting complex spans 4 million square
feet (92 acres), or 80 football fields. The terminals are equipped with advanced, customizable
technology to automate the express package sorting process. According to the UPS website, the
original expansion was the largest capital project in the company's 95-year history and increased the
hub's sorting capacity to 304,000 packages per hour - or more than 84 packages every second.
The UPS website boasts that “the completion of the massive hub is just one aspect of UPS's recent
expansion of its air network worldwide.” In 2002 alone, UPS:11
•
•
•
Opened an intra-Asia air hub in the Philippines, where volume from countries linked to the hub
grew by 20 percent during the second quarter of 2002.
Completed its Latin America gateway expansion at Miami International Airport, where UPS is
the largest air cargo carrier.
Announced plans to double the sorting capacity of its Europe air hub in Cologne/Bonn,
Germany.
FedEx Super Hub
Memphis is not only FedEx’ Super Hub, but is also the location of the headquarters for FedEx
Corporation, FedEx Express, FedEx Freight and FedEx Trade Networks. The company is constantly
searching new ways to improve its service, with faster sorting, better information on packages’
locations, and by increasing capacity with higher technology that allows reducing separations
between aircraft.
FedEx Express alone pumps more than $1 billion every year into research. As a result, FedEx
utilizes a state of the art sorting facility and air traffic management system. It permits FedEx
Express to serve 95% of the global economy on a 24- to 48-hour basis. In addition to its own
service, FedEx and the United States Postal Service (USPS) signed an agreement in 2001 that
contracts FedEx to carry approximately 3.5 million pounds of mail each day – equivalent of about
30 widebody DC-10’s – in the U.S. alone!
FedEx facility covers approximately 500 acres at MEM, and will reach 600 acres in 2009. It has a
five-mile perimeter and parking slots for 175 aircrafts. It operates 24 hours a day, 7 days a week,
365 days a year, and employs more than 15,000 persons. There are four daily sorts, plus an
important night sort between 10:30 p.m. and 2 a.m. that allows next day deliveries. Over 8,000
employees work during the day and 4,000 during the night. These sorts bring an average of 3.3
million packages through the facility every day.
11
United Parcel Service 2002 Press Releases, “UPS Completes Seven-Year, US$1B Expansion of Air Hub.” September
27, 2002.
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Figure 15 – Views of FedEx “Super Hub” facilities in MEM, remote aprons are visible on the left
Operations
Operations for both carriers are extremely similar as both have leaned out their processes and have
reached maximum levels of efficiency. Each carrier makes operational improvements based on
industry best-practices, and so the following illustration applies to both carriers.
Every night, starting at 10:30 p.m., 100 UPS aircraft and 150-160 FedEx aircraft arrive at their
respective hubs from points all over the world. On average, one aircraft lands every 90s. Following
touchdown, every minute is precious. As soon as the aircraft gets clearance from the air traffic
control, UPS and FedEx ramp controllers lead pilots to the gate using color-coded screens that track
arrival times for arriving planes. As soon as the engines are stopped, maintenance and service crews
go to work on aircraft while unloading teams bring containers into the sort facility.
In order to maintain the highest productivity levels, assignment of these crews is done through
handheld computers. This computerized system makes possible rapid assignments and rapid
communications between the center and the workers. At FedEx, 53 teams of 16 people unload the
planes, each team unloading an average of 3 planes per night. After UPS $1B expansion, crews will
be responsible for servicing aircraft at Worldport’s 70 terminal gates and 40 remote aprons.
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Figure 16 – Freight unloading at FedEx’s SuperHub. Crews operate 24/7 to meet the time-sensitive demand.
Figure 17 – Cargo Containers nicknamed “igloos” fit perfectly into the jet’s cabins (left). Worldport’s 170 miles
of conveyors are three-tiered to maximize the height of the sorting buildings (right).
The typical window-times to unload an airplane range from 18 minutes for a 727 containing 9 to 12
containers, to 33 minutes for larger aircraft (B747-200F or A310-200) with 50 containers. Crews
are held accountable for meeting the required unload/load times, and in case of a 1-minute delay
over the schedule, the senior manager must explain the reason at a daily 5am meeting.
Once the containers are off the plane, they are transferred to the “input area” by one or two workers.
In this area, workers unload the containers and place the packages on the conveyor belt. The
containers have been recently redesigned. They are clear so workers unload them more easily by
knowing how many packages are left and load them more easily because they can better adjust
positions of the packages to balance weight and center-of-gravity. Both carriers use similar
containers.
Once the packages are on the conveyor belt, they are measured, weighed, scanned and finally sorted
depending on their final destination using the best technology to date. The conveyor belt system is
an incredible technology that sorts packages with incredible speed. At Worldport, packages move
through 122 miles of high-speed conveyors in as little as eight minutes. The maze of conveyors are
synchronized by a sophisticated system of cameras and lasers that read the detailed information
encoded in UPS "smart labels." The information scanned off each package triggers a network of
computer-activated sorting and tracking devices that process 59 million database transactions every
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hour. The entire operation is expandable to accommodate up to 500,000 packages each hour, or 140
each second, during peak periods. FedEx’s system can sort 325,000 letters and 160,000 packages
(whose weight is less than 75 pounds) per hour.
Figure 18 – Crew moving containers on floors lined with ball bearings, which are far enough apart to allow for
workers to walk safely along the floor.
Figure 19: Scanning of the packages (left) at the start of 300 miles of conveyor belts (right) which move packages
through FedEx hub in under 15 minutes
Shortly after 2am, the sorting is finished and the first aircraft depart for East Coast or European
destinations. At 3:30am, all aircraft are en route to their destinations. At 5am, there is a debriefing
meeting to discuss the problems encountered during the night sort, after which corrections are made
for the next day.
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Figure 20 – UPS’ Global Operations Center oversees aircraft, weather, news and contingency planning (left).
UPS is in the process of replacing its older aircraft to benefit from fuel and operational efficiencies (right).
The Network
Memphis International Airport is the world’s busiest airport. FedEx’ hub connects MEM to more
than 220 countries and territories on six continents. MEM serves every international market FedEx
Express serves, with approximately 1,250 flights per week landing at MEM. By contrast, UPS's
current air operations serve 200 countries and territories on six continents. Domestically, however,
UPS leads with guaranteed Next Day Early A.M service, which promises delivery by 8 a.m.,
reaches 11,670 ZIP codes in the U.S., almost 60 percent more than any other express carrier.12
FedEx’ network has evolved in recent few years. Years ago, all was centralized in MEM, so that a
package traveling from New York City to Schenectady went through the “Super Hub”. Nowadays,
smaller hubs are in place throughout the world that permit bypassing MEM. As a result, a package
going from the East Coast to the East Coast will never leave the East Coast. This new network
makes fuel savings and reduces congestion and workload at the Memphis facility. This trend
towards small hubs is increasing at UPS as well. UPS opened its intra-Asia hub in the Philippines,
Latin American hub at Miami and its European hub in Cologne to realize the same savings as
FedEx.
UPS and FedEx Fleets
UPS flies 2.3 million packages and documents per day across the globe and holds that at least one
of UPS’ 277 jet aircraft (8th largest airline in the world)13 is in the sky at any given time. UPS also
charters 326 aircraft (including smaller non-jet aircraft) to meet its service needs. In total, UPS flies
over 1,000 flight segments each day. We note that FedEx includes small aircraft in its fleet count,
whereas UPS’ smallest aircraft (of the 277) is the B757-200 freighter variant. UPS maintains
thirteen aircraft and crews on standby around the world as “hot spares” to replace any aircraft that
are suddenly out of service.
12
United Parcel Service 2002 Press Releases, “UPS Completes Seven-Year, US$1B Expansion of Air Hub.” September
27, 2002.
13
Louisville Regional Airport Authority, “Louisville International Ranked 3rd Busiest Cargo Airport in North America;
th
9 in the World.” August 6, 2007.
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By contrast, FedEx flies 3.5 million packages per day across the globe and holds the biggest fleet of
aircraft in the world. It owns 370 jet aircraft, plus 297 small regional aircraft (Cessna + Fokker). As
of December 2007, the two airlines’ jet fleets are broken down as follows:
Table 10 – UPS and FedEx Fleets, current as of Dec. 2007 (Source: fedex.com and ups.com)
UPS
FedEx*
16
92
B727-100/200
46
DC-8
75
4
B757-200
32 (27 on order)
B767-300ER
53
63
A300-600
66
A310-200
B747-100/200/400 13 (11 on order)
87
MD-10
38 (3 on order)
58
MD-11
TOTAL
273
370
*In addition, FedEx has ordered 15 new Boeing 777 Freighters.
X. Technology
UPS and FedEx have been two of the leaders in the development of ground and cockpit systems,
such as Automatic Dependent Surveillance – Broadcast (ADS-B), GPS Local Area Augmentation
System (LAAS), cockpit Moving Map and other cutting edge technologies. Many pilot programs
have been sponsored by the FAA since UPS and FedEx, as virtually solitary operators during the
night, are perfect real-world testbed for technology development.
ADS-B and the UPS Fleet
UPS has been at the forefront of cargo carriers making use of a GPS-based surveillance and
navigation aid known as Automatic Dependent Surveillance-Broadcast (ADS-B). ADS-B is a
device which plots on an electronic dashboard map all aircraft (and even ground vehicles) in the
surrounding region which are also equipped with ADS-B.
ADS-B enables increased capacity and efficiency by supporting reduced aircraft spacing, enhanced
visual approaches and “free flight” while also increasing safety with improved visual acquisition in
the air and on the ground, as well as the provision of graphical weather data to the cockpit. ADS-B
units [automatically] broadcast the position and intent information of an equipped aircraft with a
signal that is received by all other ADS-B equipped aircraft.
Unfortunately, without a supplemental technology known as Traffic Information Services –
Broadcast (TIS-B), only aircraft equipped with ADS-B show up on others’ maps. Therefore the
benefit is only achieved at near 100% equipage so that a pilot has confidence in what is around the
aircraft.
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UPS’ entire fleet is equipped with ADS-B, which provides each arriving or departing aircraft with a
complete picture of the terminal airspace (since the airline is effectively the lone night-time
operator). Similarly, FedEx has participated in the development of ADS-B technology in
partnership with the FAA.
Figure 21 –Arrival Departure Curve Estimates for SDF showing Increased Capacity potentially available with
the Increased Surveillance Accuracy and Situational Awareness provided by ADS-B (Source: Dr. George
Donohue, et al, George Mason University. October 24, 2001)
UPS has used ADS-B to merge and space arriving and departing aircraft to a more manageable
flow. Since UPS brings in 100 aircraft in less than two hours, the required spacing is at an FAAallowed minimum. ADS-B trained pilots are able to self-space to ensure no time is lost between
arriving aircraft. UPS has realized a host of cost savings in time and fuel summarized in a study
conducted by George Mason University. The GMU research team calculated the above arrival
departure curve using the following fleet mix:
Figure 22 – Fleet Mix assumptions used in ADS-B simulations (Source: Dr. George Donohue, et al, George
Mason University. October 24, 2001)
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Figure 23 – Cash Flow and NPV Benefit resulting from the addition of ADS-B to UPS’ entire fleet (Source: Dr.
George Donohue, et al, George Mason University. October 24, 2001)
The analysis conducted at GMU was aimed at determining “how improved surveillance and
situational awareness can benefit air cargo airport capacity and operational performance.”14 The
analysis indicated that the primary benefit (measured in NPV and cash flow) is in the increased time
flexibility in schedule planning. Depending upon the set of assumptions captured in the various
“cases,” an airline would benefit from a net-positive NPV in the second year of ADS-B usage.14
One additional benefit of employing surveillance aid devices such as ADS-B is the ability for
equipped aircraft to execute Continuous Descent Approaches (CDAs), a procedure designed to
reduce fuel burn and noise. Pilots execute this procedure descend during final approach at a
constant angle of three degrees until the aircraft has entered the Instrument Landing System.
CDA’s avoid pilot’s needing to thrust up when they reach each altitude step during descent.
Instead, they are able to idle to landing, reducing noise and fuel burn. The following is a depiction
of a CDA at Louisville International:
14
Donohue, George et al. “Potential Net Present Value for a Cargo Airline Investment in ADS-B Avionics Equipment:
A Preliminary Analysis.” George Mason University, October 24, 2001.
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Figure 24 – Continuous Descent Approach at Louisville International Airport 10/2002 (Source: Professor John
Paul Clarke research group at MIT, Joint University Program Meeting 10/23/2003)
The savings in noise, fuel and flight time resulting from the execution of CDA’s were analyzed in a
study by UPS Airlines Captain Bob Hilb, results summarized here:
Figure 25 – Noise Impact, Fuel and Time Savings of Continuous Descent Approaches at SDF (Source: Captain
Bob Hilb, UPS Airlines. July 22, 2005)
Because the benefits of ADS-B and its associated applications are only realized with near-full
equipage, both FedEx and UPS, as virtually solitary operators during the night, are perfect leaders
in the development of this technology.
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XI. Conclusions
The world’s two largest integrated carriers, UPS and FedEx, operate their central air hubs very
similar to one another. UPS’ Worldport in Louisville (SDF) and FedEx’s Super Hub in Memphis
(MEM) have evolved rapidly over the past decade as technology has improved and operations have
become “lean.” While the case study has exposed a few land-side operations which differ between
the two carriers, the biggest takeaway is the vast differentiation between cargo and passenger hubs.
The main differences between UPS and FedEx relate to their use of technology and their
relationships with their hub airports. Whereas both companies have been developing ADS-B in
partnership with the FAA, currently only UPS has this system installed on all of its aircraft and can
thus reduce separation times for landings.
In addition, UPS appears to have a stronger relationship with SDF due to its dominant role at the
airport. UPS is the largest airline at SDF with 47% of operations with the next largest operating
only 10%. In Memphis, Norwest operates twice the number of flights relative to FedEx. We must
make clear, however, that this is a relative advantage and that both UPS and FedEx provide
significant economic advantage to SDF and MEM and therefore work closely with the airports.
The biggest takeaway from this case study is the differences between passenger and cargo airline
operation of hubs. These differences are a result of dissimilar networks and time operations. For
example, passenger carriers prefer locations with strong O-D demand whereas cargo carriers prefer
smaller population densities (which tend to be more amenable to night-time operations). In addition,
cargo carriers do not require the architecturally pleasing terminals that travelers prefer. And cargo
carriers can route packages through whichever itinerary is the most cost effective for the network,
since packages care very little about multiple connections.
Over the past ten years, the growth in demand for cargo has exceeded that of passenger carriers.
The cargo business is in growth mode, and it is forecasted to continue over the next ten years, as
was discussed in Section II. As Boeing forecasts, however, much of this growth is occurring
outside the U.S., so UPS and FedEx are rapidly adjusting their network to capture the new revenue
opportunities.
Figure 26 –Air Freight Growth by Major Market (Source: Boeing World Air Cargo Forecast, 2006/2007)
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Figure 27 – 2006 Global Top 20 Cargo Airlines Revenue Growth (Data Source: Airline Business Cargo Rankings
2006, November 2007)
FedEx and UPS are currently amongst the largest players globally, but both are well below the
average growth rate in the industry, as seen in Figure 28.
Figure 28 – 2006 Global Top 20 Cargo Airlines Revenue Growth (Data Source: Airline Business Cargo Rankings
2006, November 2007)
Since UPS and FedEx are the leaders in freight delivery efficiency and logistics management, they
have developed a domain expertise that can be leveraged in other parts of the world. To capture the
growth in Asia, both carriers are increasing their hub presence in the region. However, both carriers
need to ensure that they acquire the resources and air service rights necessary to capture it.
UPS and FedEx also need to adapt their services to fit the market demands – price-elasticity over
time-sensitivity. The two carriers must position themselves to compete against the countless
number of low-cost charter carriers emerging in the region. It seems that in the coming decade,
UPS and FedEx will face more serious competition overseas than from the next state over.
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Appendix A: 2006 Cargo Airport Rankings
Source: Airports Council International
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Appendix B: UPS Air Cargo Airports
U.S. AIRPORTS
CODE
CITY
CODE
CITY
CODE
CITY
ABQ
ALBUQUERQUE
GEG
SPOKANE
OKC
OKLAHOMA CITY
ABY
ALBANY(GA)
GSO
GREENSBORO
OMA
OMAHA
ALB
ALBANY(NY)
GSP
GREENVILLE
ONT
ONTARIO
ANC
ANCHORAGE
HNL
HONOLULU
ORD
CHICAGO
ATL
ATLANTA
HRL
HARLINGEN
ORF
NORFOLK
AUS
AUSTIN
HSV
HUNTSVILLE
PDX
PORTLAND
BDL
HARTFORD
IAD
WASHINGTON-DULLES
PHL
PHILADELPHIA
BFI
SEATTLE
IAH
HOUSTON
PHX
PHOENIX
BFM
MOBILE
ICT
WICHITA
PIA
PEORIA
BHM
BIRMINGHAM
IND
INDIANAPOLIS
PIE
ST. PETERSBURG
BIL
BILLINGS
JAN
JACKSON
PIT
PITTSBURGH
BNA
NASHVILLE
JAX
JACKSONVILLE
PVD
PROVIDENCE
BOI
BOISE
JFK
NEW YORK
RDU
RALEIGH
BOS
BOSTON
KOA
KONA
RFD
ROCKFORD
BUF
BUFFALO
LAN
LANSING
RIC
RICHMOND
BWI
BALTIMORE
LAS
LAS VEGAS
RNO
RENO
CAE
COLUMBIA
LAX
LOS ANGELES
ROA
ROANOKE
CID
CEDAR RAPIDS
LCK
COLUMBUS
RSW
FORT MYERS
CLE
CLEVELAND
LGB
LONG BEACH
SAN
SAN DIEGO
CLT
CHARLOTTE
LIT
LITTLE ROCK
SAT
SAN ANTONIO
CVG
CINCINNATI
LRD
LAREDO
SBN
SOUTH BEND
DAY
DAYTON
MCI
KANSAS CITY
SDF
LOUISVILLE
DEC
DECATUR
MCO
ORLANDO
SGF
SPRINGFIELD
DEN
DENVER
MDT
HARRISBURG
SHV
SHREVEPORT
DFW
DALLAS / FT. WORTH
MEM
MEMPHIS
SJC
SAN JOSE
DSM
DES MOINES
MHR
SACRAMENTO
SJU
SAN JUAN
DTW
DETROIT
MHT
MANCHESTER
SLC
SALT LAKE CITY
ELP
EL PASO
MIA
MIAMI
STL
ST. LOUIS
EWR
NEWARK
MKE
MILWAUKEE
SWF
NEWBURGH
FAT
FRESNO
MSP
MINNEAPOLIS
SYR
SYRACUSE
FLL
FT. LAUDERDALE
MSY
NEW ORLEANS
TUL
TULSA
FSD
SIOUX FALLS
OAK
OAKLAND
TUS
TUCSON
FWA
FORT WAYNE
OGG
MAUI
TYS
KNOXVILLE
INTERNATIONAL AIRPORTS
CODE
CITY, COUNTRY
CODE
CITY, COUNTRY
CODE
CITY, COUNTRY
ABZ
ABERDEEN,
UNITED KINGDOM
AMSTERDAM,
NETHERLANDS
STOCKHOLM,
SWEDEN
ATHENS,
GREECE
ABU DHABI,
GDL
GUADALAJARA,
MEXICO
GLASGOW,
UNITED KINGDOM
GUATEMALA CITY,
GUATEMALA
GUAYAQUIL,
ECUADOR
HANNOVER,
PEK
BEIJING,
CHINA
PENANG,
MALAYSIA
PRESTWICK,
UNITED KINGDOM
PLYMOUTH,
UNITED KINGDOM
PANAMA CITY,
AMS
ARN
ATH
AUH
GLA
GUA
GYE
HAJ
PEN
PIK
PLH
PTY
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BCN
BGY
BHX
BKK
BLQ
BOG
BOH
BOM
BRE
BRS
BRU
BUD
CAN
CDG
CEB
CGN
CIA
CPH
CRK
CUU
CWL
DRS
DTM
DUB
DUS
DXB
EDI
EMA
EXT
EZE
FMO
FRA
UNITED ARAB EMIRATES
BARCELONA,
SPAIN
BERGAMO,
ITALY
BIRMINGHAM,
UNITED KINGDOM
BANGKOK,
THAILAND
BOLOGNA,
ITALY
BOGOTA,
COLOMBIA
BOURNEMOUTH,
UNITED KINGDOM
BOMBAY,
INDIA
BREMEN,
GERMANY
BRISTOL,
UNITED KINGDOM
BRUSSELS,
BELGIUM
BUDAPEST,
HUNGARY
GUANGZHOU,
CHINA
PARIS,
FRANCE
CEBU,
PHILIPPINES
COLOGNE,
GERMANY
ROME,
ITALY
COPENHAGEN,
DENMARK
PAMPANGA,
PHILIPPINES
CHIHUAHUA,
MEXICO
CARDIFF,
UNITED KINGDOM
DRESDEN,
GERMANY
DORTMUND,
GERMANY
DUBLIN,
IRELAND
DUESSELDORF,
GERMANY
DUBAI,
UNITED ARAB EMIRATES
EDINBURGH,
UNITED KINGDOM
EAST MIDLANDS,
UNITED KINGDOM
EXETER,
UNITED KINGDOM
BUENOS AIRES,
ARGENTINA
MUENSTER,
GERMANY
FRANKFURT,
GERMANY
HAM
HEL
HHN
HKG
ICN
IST
KEF
KIX
KUL
LBA
LEJ
LGW
LHR
LIS
LPL
LTN
LUX
LYS
MAD
MAN
MEL
MEX
MGA
MMX
MNL
MTY
MUC
NCL
NGO
NRT
NUE
OPO
OSL
GERMANY
HAMBURG,
GERMANY
HELSINKI,
FINLAND
HAHN,
GERMANY
HONG KONG,
CHINA
INCHON,
SOUTH KOREA
ISTANBUL,
TURKEY
KEFLAVIK (REYKJAVIK),
ICELAND
OSAKA,
JAPAN
KUALA LUMPUR,
MALAYSIA
LEEDS/BRADFORD,
UNITED KINGDOM
LEIPZIG,
GERMANY
LONDON (GATWICK),
UNITED KINGDOM
LONDON (HEATHROW),
UNITED KINGDOM
LISBON,
PORTUGAL
LIVERPOOL,
UNITED KINGDOM
LONDON (LUTON),
UNITED KINGDOM
LUXEMBOURG,
LUXEMBOURG
LYON,
FRANCE
MADRID,
SPAIN
MANCHESTER,
UNITED KINGDOM
MELBOURNE,
AUSTRALIA
MEXICO CITY,
MEXICO
MANAGUA,
NICARAGUA
MALMO,
SWEDEN
MANILA,
PHILIPPINES
MONTERREY,
MEXICO
MUNICH,
GERMANY
NEWCASTLE,
UNITED KINGDOM
NAGOYA,
JAPAN
NARITA,
JAPAN
NUREMBERG,
GERMANY
PORTO,
PORTUGAL
OSLO,
NORWAY
PVG
SAL
SAP
SDQ
SHJ
SIN
SJO
SNN
STN
STR
SYD
SZX
TAO
TGU
TLS
TLV
TPE
TSF
TXL
UIO
VCP
VIE
VLC
WAW
YEG
YHM
YMX
YOW
YUL
YVR
YWG
YYC
YYZ
PANAMA
SHANGHAI,
CHINA
SAN SALVADOR,
EL SALVADOR
SAN PEDRO SULA,
HONDURAS
SANTO DOMINGO,
DOMINICAN REPUBLIC
SHARJAH,
UNITED ARAB EMIRATES
SINGAPORE,
SINGAPORE
SAN JOSE,
COSTA RICA
SHANNON,
IRELAND
STANSTED,
GREAT BRITAIN
STUTTGART,
GERMANY
SYDNEY,
AUSTRALIA
SHENZHEN,
CHINA
QINGDAO,
CHINA
TEGUCIGALPA,
HONDURAS
TOULOUSE,
FRANCE
TEL AVIV,
ISRAEL
TAIPEI,
TAIWAN
TREVISO,
ITALY
BERLIN (TEGEL),
GERMANY
QUITO,
ECUADOR
VIRACOPOS,
BRAZIL
VIENNA,
AUSTRIA
VALENCIA,
SPAIN
WARSAW,
POLAND
EDMONTON (ALBERTA),
CANADA
HAMILTON (ONTARIO),
CANADA
MONTREAL (QUEBEC),
CANADA
OTTAWA (ONTARIO),
CANADA
MONTREAL (DORVALQUEBEC), CANADA
VANCOUVER (BRITISH
COLUMBIA), CANADA
WINNIPEG (MANITOBA),
CANADA
CALGARY (ONTARIO),
CANADA
TORONTO (ONTARIO),
CANADA
= Indicates Truck Points
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December 14th, 2007
Appendix C: Examples of UPS Aircraft Configurations and Containers
(Source: www.ups.com/aircargo)
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Appendix D: SDF Airport Improvements, 2007-2008
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Airport Improvements (Source: Louisville Regional Airport Authority)
Louisville International Airport serves as the region's economic engine. Some of the key current and future
projects are:
Terminal and Facility Improvements
In-Line Baggage Screening
Projects in the second phase of terminal improvements include two in-line baggage screening buildings that
will permit the large scanning equipment in front of the ticket counters to be removed. Baggage screening
will then occur within the buildings immediately behind the terminal. When complete, travelers will check
their bags curbside or at the counter as they did prior to 9/11.
Rental Car Lot Improvements
To improve its rental-car facilities, the Authority will construct improvements for the 'quick-turn' facility
next to the terminal. The former catering kitchen will be demolished and rental-car parking spaces will be
added. In addition, lighting in the area will be improved. The project will begin in June and should be
complete in fall 2007.
Airfield Improvements
Taxiway Alpha ("A")
Construction of Phase I (south end) of Taxiway "A" began in the spring of 2007. This taxiway, which will
parallel the West Runway (17R/35L), will allow Louisville International to accommodate larger, Group VI
aircraft. This multi-year project will allow Louisville International to accommodate current airport growth
needs and help secure the community's economic future by constructing infrastructure to retain and attract
aviation-related companies and jobs.
Airfield Lighting (Phase II)
The Authority has completed the second phase of its project to replace existing taxiway-edge lights with
brighter, Light Emitting Diode (LED) light fixtures. Phase II installed the LED lights on Taxiways "C","D"
and "G." In the future, the Authority plans to install LED light fixtures along all taxiways at Louisville
International. LED light fixtures are brighter-and more energy efficient.
Airfield Pavement Repairs and Markings
Each year, the Authority identifies pavement -repair projects that maintain the Authority's infrastructure
investment. This year, the airfield-pavement project includes replacing select concrete slabs on the East
Runway (17L-35R), milling and replacing asphalt on the shoulders along the West Runway (17R-35L) and
upgrading the 'hold lines' and intersecting taxiway lines to meet the new FAA standard, effect January 2008.
Construction will continue through the summer of 2007.
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Appendix E: MEM Airport Improvements, 2007-2013
Source: Memphis International Airport
Weather
Optimum Rate
Scenario
Today
Ceiling and visibility
above minima for visual
New Runway
approaches (5000 ft
ceiling and 5 mi visibility)
Occurrence: 76%
Marginal Rate
Below visual approach
minima but better than
instrument conditions
Occurrence: 17%
IFR Rate
Instrument conditions
(ceiling < 1000 ft or
visibility < 3.0 miles)
Occurrence: 7%
Planned improvements
(2013)
Today
New Runway
Planned improvements
(2013)
Today
New Runway
Planned improvements
(2013)
Configuration
Procedures
Arrivals on Runways 36L, 36R, 27
Departures on 36L, 36C
Frequency of Use: 55% in
Optimum conditions
N/A
148-181
Visual approaches,
visual separation
140-167
Instrument
approaches, visual
separation
N/A
N/A
Same
Visual approaches,
visual separation
Arrivals on Runways 36L, 36R
Departures on 36L, 36C
Frequency of Use: 59% in IFR
conditions
N/A
N/A
191
Same
Arrivals on Runways 36L, 36R, 27
Departures on 36L, 36C
Frequency of Use: 50% in
Marginal conditions
Benchmark Rate
(per hour)
190
120-132
Instrument
approaches, radar
separation
Same
N/A
125
NOTE: Data on frequency of occurrence of weather and runway configuration usage is based on FAA ASPM data for
January 2000 to July 2002 (excluding 11-14 September 2001), 7 AM to 10 PM local time.
Planned Improvements at MEM include:
•
CEFR, for reduced in-trail separations between arrivals in Marginal conditions.
•
Advanced TMA/RNAV, to improve delivery accuracy and help MEM consistently utilize available
capacity.
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Appendix F: MEM Airport Diagram
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Appendix G: Presence of Northwest Airlines at MEM
40