$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