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UPS Alaska and Beyond Nick D’Andrea, VP Public Affairs

2017

2 UPS | Alaska Operations

Alaska Package

3 UPS | Alaska Operations

Alaska Package Overview

• 8 UPS brown centers Anchorage, Fairbanks, Kenai, Homer, Kodiak Island, (Juneau, Ketchikan, Sitka-SE Alaska)

• 2 Satellites • Wasilla and Seward

• 1 large vendor delivery operation (Lynden Projects) • 1 shared Division Manager for air and package • 2 package managers, 6 FT supervisors, 11 PT supervisors • Average daily FSPs = 92 • FT 22.3s = 5 (Anchorage Preload / air pickup and delivery) • PT hourly preload and clerical = 40 • Division average delivery volume = 16783 • Division average delivery stops = 9116

4 UPS | Alaska Operations 4

Alaska Package Overview

• Southeast Alaska volume flown on Alaska Airlines

• Average daily volume: • 1800 pieces • UPS Centers include Juneau,

Ketchikan, and Sitka

• Lynden – Extended Alaska (Bush) • Average daily volume: • 2054 pieces • Delivers to all points in Alaska that

UPS centers do not. • Using Tundra system in dense

delivery areas (35-40 units)

5 UPS | Alaska Operations 5

Alaska Network

6 UPS | Alaska Operations

Remote Alaska - Hubs

Kotzebue Nome

Barrow

7 UPS | Alaska Operations

Anchorage Chief Pilot Group

8 UPS | Alaska Operations 8

Chief Pilot Group Overview

• ANC Domicile Staffing • 1 Chief Pilot • 5 Assistant Chief Pilots • 2 Administrative Assistants • 554 Crewmembers

• ANC Flight Training Center Staffing • 1 FFS 747 Simulator • 1 FFS MD-11 Simulator • MD11 VPT • Primary training base for 554 ANC

domiciled crewmembers

9 UPS | Alaska Operations

Anchorage Aircraft Maintenance

10 UPS | Alaska Operations

ACMX Staffing

• 1 Manager • 4 FT Supervisors • 27 FT AMTs • 1 FT Utility • 1 PT Utility

11 UPS | Alaska Operations

Anchorage Gateway

12 UPS | Alaska Operations

Anchorage Gateway Overview

• 24/7/365 Operation • 1 Shared Division Manager • 3 Managers, 13 FT sups, 41 PT sups • 269 Ramp hourly, 125 FT, 141 PT • 31 Flight Ops Admins, 21 Import / Export Admins

13 UPS | Alaska Operations

Weekly Flight Schedule

• 96 Flights per week • 25 MD11 departures • 30 767 departures • 41 747 departures

• Average ground time 2 hours 45 minutes

14 FLT ARR FLT DEP ORG DEST STA ETD TYPE TURN S U

UPS 108 108 EWR NRT 4:13 8:08 76P 3:55 2 1UPS 104 104 RFD KIX 5:37 8:24 76P 2:47 2 2UPS 64 64 SDF ICN 5:58 9:50 74Y 3:52 2 3UPS 98 98 ONT ICN 6:02 11:01 M1F 4:59 2 4UPS 80 80 SDF PVG 6:07 8:55 74Y 2:48 2 5UPS 62 62 SDF HKG 6:34 10:10 74Y 3:36 2 6

UPS 109 109 NRT SDF 11:50 14:27 76P 2:37 2 1UPS 99 99 ICN SDF 12:53 14:49 M1F 1:56 2 2UPS 105 105 KIX RFD 12:57 15:31 76P 2:34 2 3UPS 61 61 TPE SDF 13:13 14:58 74Y 1:45 2 5UPS 63 63 HKG SDF 13:13 15:05 74Y 1:52 2 5UPS 77 77 SZX ONT 13:19 15:38 M1F 2:19 2 6

UPS 81 81 PVG SDF 13:45 15:22 74Y 1:37 2 7

UPS 59 59 HKG ONT 15:03 17:05 74Y 2:02 2 5UPS 2998 2997 SDF SDF 19:29 23:29 M1F 4:00 2 1

2222222222

W

E

D

N

E

S

D

A

Y

10/14/2015

14 UPS | Alaska Operations

Anchorage Gateway Overview

• 11 to 22 Daily Jet Rotations depending on day of week • Fleet makeup: 747-400, MD11, 767 • Domestic gateway origins and destinations

• SDF, ONT, RFD, EWR, seasonally BFI, PHL, DFW

• International gateway origins and destinations • HKG, NRT, KIX, ICN, PVG, TPE, SZX

• Brokerage Activity - Day

15 UPS | Alaska Operations

US/Asia System

16 UPS | Alaska Operations

Anchorage Gateway Overview

• Contingency events • Record snowfall in ANC 2011/2012 134.5 inches

17 UPS | Alaska Operations

Gateway Footprint

Proposed 2/4 Aircraft Positions

6 5 4

1 2 3

8 7

10 11 12

FedEx 12 jet parking spots

UPS Ramp FedEx Ramp

LYNXS Ramp

FedEx Flt Sim Bldg

Papa Ramp

Polar/Atlas

N

18 UPS | Alaska Operations

Thank you!