$4,039
$6,025
$813
$1,316
$0
$717
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year 1 Year 2
FedEx Northwest United
Source: Exhibit FX-R-3 and FX-R-8
Economic Impact (Millions)
Docket OST-99-5539 Exhibit FX-R-1Page 1 of 1
THE PROPOSED FEDERAL EXPRESS U.S.-CHINA SERVICE WILL GENERATE SIGNIFICANTLY GREATER ECONOMIC BENEFITS TO
THE U.S. THAN EITHER THE NORTHWEST OR UNITED PROPOSALS
$505
$430
$116 $120
$0
$103
$0
$100
$200
$300
$400
$500
$600
Year 1 Year 2
FedEx Northwest United
Economic Impact Per Frequency
32,022
47,559
8,301
13,665
0
7,053
0
10,000
20,000
30,000
40,000
50,000
Year 1 Year 2
FedEx Northwest United
Source: Exhibit FX-R-3 and FX-R-8
Total Jobs
Docket OST-99-5539 Exhibit FX-R-2Page 1 of 1
4,003
3,397
1,186 1,242
0
1,008
0
1,000
2,000
3,000
4,000
5,000
Year 1 Year 2
FedEx Northwest United
Jobs Per Frequency
THE PROPOSED FEDERAL EXPRESS U.S. - CHINA SERVICE WILL GENERATE 24,000 TO 34,000 MORE U.S. JOBS THAN EITHER THE
NORTHWEST OR UNITED PROPOSAL
UNITED AIRLINES’ U.S. - CHINA YIELDS HAVE DECLINED SIGNIFICANTLY SINCE 1997
1.02
1.06
1.02
0.87
0.98
1.00
0.99
0.60
0.70
0.80
0.90
1.00
1.10
1.20
Q1 Q2 Q3 Q4
1997 1998
Source: U.S. DOT Origination-Destination Passenger Survey via Data Base Products
0
Docket OST-99-5539 Exhibit FX-R-16Page 1 of 1
Yield Index 1st Qtr. 1997 = 1.00
NORTHWEST’S FREIGHTER PROPOSAL WOULD SERVE AT MOST 40% OF THE CHINA - U.S. AIR IMPORT MARKET
WHILE FEDERAL EXPRESS WILL SERVE 100% SIX DAYS A WEEK
NaritaShanghai
Anchorage
100%
517.9 million lbs.
40%
208.8 million lbs.
China to U.S.
FedExService 1/
NorthwestFreighterService 2/
Docket OST-99-5539 Exhibit FX-R-17Page 1 of 1
1/ Six days a week2/ Four days a week or less
Source: Exhibits Northwest 7 and FX-R-22
States to be served by Northwest at least twice a week
NORTHWEST’S FREIGHTER PROPOSAL WOULD SERVE AT MOST 41% OF THE U.S. - CHINA AIR EXPORT MARKET
WHILE FEDERAL EXPRESS WILL SERVE 100% SIX DAYS A WEEK
NaritaShanghai
Anchorage
Seattle
100%
78.8 million lbs.
1/ Six days a week2/ Four days a week or less
Source: Exhibits Northwest 7 and FX-R-22
41%
32.6 million lbs.
U.S. to China
One day a week
FedExService 1/
NorthwestFreighterService 2/
Docket OST-99-5539 Exhibit FX-R-18Page 1 of 1
States to be served by Northwest at least twice a week
NORTHWEST AIRLINES’ U.S. - CHINA YIELDS HAVE DECLINED SIGNIFICANTLY SINCE 1997
1.00 1.01
1.07
1.02
0.94
0.85
0.99
0.60
0.70
0.80
0.90
1.00
1.10
1.20
Q1 Q2 Q3 Q4
1997 1998
Source: U.S. DOT Origination-Destination Passenger Survey via Data Base Products
Yield Index
0
Docket OST-99-5539 Exhibit FX-R-19Page 1 of 1
1st Qtr. 1997 = 1.00
NORTHWEST AIRLINES’ U.S. - CHINA LOAD FACTOR HAS DECLINED SIGNIFICANTLY SINCE 1997
1.00 0.99
1.09
0.83 0.830.81
0.97
0.88
0.94
1.08
0.76
0.85
0.68
0.58
1.06
0.59 0.71
0.77
0.74
0.94
1.06
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
1.20
Jan. Feb. Mar. April May June July Aug. Sep. Oct. Nov. Dec.
1997 1998
Source: U.S. DOT Origination-Destination Passenger Survey via Data Base Products
Load Factor Index
0
Docket OST-99-5539 Exhibit FX-R-20Page 1 of 1
March 1997 = 1.00