FedEx Issues Challenges to Aviation Industry And FAA; Challenge Includes Fundamental Changes to the Air Traffic Control Rules and Puts ATC Modernization on the Fast Track.

Business Editors & Aviation Writers

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 13, 2001

FedEx Express, the world's largest express transportation company and a subsidiary of FedEx Corporation (NYSE:FDX), today issued four challenges to the aviation industry and the Federal Aviation Administration (FAA) to radically overhaul this country's air traffic control paradigm.

Calling for an "outcome perspective" rather than a "technology perspective," Donald O. Barber, sr. vice president of air operations, FedEx Express, challenged the aviation industry to change the way the air traffic control system is managed. "The industry is compromising its operational goals and technological capabilities to fit existing processes," Barber stated. "Operational outcome standards such as `time-to-touchdown' and `time-to-gate' are the only reliable, unambiguous and unchangeable measurements for an entire system. Only standards like these will force the system to safely use all of the capacity that is available, whether we have new runways or not."

Barber challenged the FAA and aviation industry to:

-- Break the historic cycle of resistance to change and put air traffic control
modernization on the fast track

-- Change the air traffic management rules and develop new standards and
outcomes

-- Establish an industry-wide, FAA-sponsored competition to build the next
generation of integrated air traffic control systems

-- Make Memphis International Airport the leading test site for a comprehensive
demonstration of all the leading technologies and proposed solutions

Barber issued the challenges as the keynote speaker for the Air Traffic Control Modernization Forum, a day-long event hosted by FedEx Express, the FAA, and the Cargo Airlines Association. Aviation industry experts, government officials, and airline executives heard updates from the FAA and FedEx Express on new air traffic management technologies. Technology demonstrations sponsored by the FAA and FedEx Express featured ground and cockpit systems, including ADS-B, GPS Local Area Augmentation System (LAAS), cockpit Moving Map and other cutting edge technologies. (See the Addendum for detailed descriptions of these technologies.)

Barber touted the new technologies but focused on the resolution of operational issues. "Technology is not the barrier to air traffic modernization," said Barber. "Proven technology that will improve safety while increasing capacity already exists. The problem is that, to date, far too much attention has been focused on a particular hardware suite that either automates or supplements existing systems. The result is operational short-sightedness that has us settling for incremental progress."

Barber praised the model cooperation and partnership between the Memphis and Shelby County Airport Authority, the FAA, the Cargo Airlines Association, and passenger aviation industries. "We have a unique opportunity in Memphis, because of the scale and complexity of our cargo and passenger aviation business here, to make Memphis the first comprehensive test site for all the proposed technology and rule changes. This would allow air traffic management to take a giant leap forward, rather than inch its way to progress. Today's demonstration in Memphis is a model of what can be accomplished through the cooperative efforts of all the stakeholders. We are ready, able and eager to accept the challenge of becoming the lead city for air traffic control modernization," said Barber.

About FedEx

With annual revenues of $20 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply-chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited, time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions.

An Addendum describing the technology demonstrations is attached.

NOTE TO EDITORS: FedEx press releases are available on the World Wide Web at http://www.fedex.com. The text of Mr. Donald Barber's speech can also be found here.

B-ROLL: Today between 2:00 and 2:15 p.m. (EDT), a B-roll package containing sound bites from FedEx and FAA officials at the Forum and footage of the latest air traffic management technologies will be available. Coordinates are: (1400 - 1415 EDT) C-Band Galaxy 3 R / Transponder 2 - (d/l frequency 3740 Vertical)

CONFERENCE CALL: At 3:00 p.m. (EDT) today, there will be a conference call to discuss the FedEx proposal for the modernization of the U.S. Air Traffic system and to allow media Q&A. In the United States, media can participate via telephone at 877/692-2596; outside of the United States, media can listen (only) by calling 973/628-6885

ADDENDUM

Technology Demonstrations

Showcased at the

Air Traffic Modernization Forum

Held in Memphis, Tenn., on June 13, 2001

The Air Traffic Modernization Forum showcased the continued progress of the FAA Safe Flight 21 program, and the development, installation and use of the Global Positioning System Local Area Augmentation System (LAAS) installed at Memphis International Airport. The technologies demonstrated at the forum are important pieces of FAA's Operational Evolution Plan, which outlines the agency's 10-year implementation blueprint.

The Safe Flight 21 demonstrations included an operational demonstration of cockpit surface moving map technology on aircraft-installed avionics. The demonstration was conducted on the FAA's Boeing 727 research aircraft and included a live taxiing scenario highlighting the effectiveness of this tool in improving runway safety. Participants saw a cockpit display of traffic information depicting the aircraft's own position and other Automatic Dependent Surveillance-Broadcast (ADS-B) aircraft and vehicle targets on the display. The targets will overlay the Memphis Airport surface moving map, showing traffic information that a pilot would see in the cockpit.

The Memphis Air Traffic Control showcased a live, side-by-side demonstration of current and future control tower surface situation display capabilities. Participants viewed a comparison of today's existing Memphis Airport Surface Detection Equipment Model 3 (ASDE-3) radar system, and the next generation ASDE Model X (ASDE-X) system, which incorporates new multilateration and ADS-B technology. The new system provides significant improvements, including the provision of target track identification and aircraft data block information to tower controllers that was unavailable with previous radar-based systems.

As a member of the FAA Government Industry Partnership team, FedEx Express has played a major role in getting the Local Area Augmentation System implemented at Memphis International Airport. A FedEx Boeing 727-200 aircraft, equipped with Rockwell Collins multi-mode receivers that use the signals broadcast by the Honeywell/Pelorus SLS-3000 LAAS ground station, made several landings during the demonstrations. In February 2001, FedEx began test flight activities, which are providing valuable operational flight information needed for system validation. Memphis is the first airport where both LAAS airborne and ground equipment are co-located. Participants observed the landing of the FedEx Boeing B727 equipped with the LAAS technology, and toured the LAAS ground station and FedEx aircraft.