1. Freighter Friendly Airports Checklist for a successful takeoff…..

2. Motivation  Revenue Potential  Air Cargo is a $45-$75 billion annual business  Represents only 20% of total distribution logistics sector  Growth Potential  Over the last decade has grown by 6.1% annually  Market size doubles every ten years  It is expected to grow between 4-6% over the next decade  Capacity Relief Potential  Many major airports in US and European Air Systems are expected to reach capacity within few years

3. Freighter Friendly Airports 3 Industry Structure

4. Freighter Friendly Airports 4 Industry Characteristics  Freight Demand Segmentation  Shipment Size  Conveyable: Sort-able Packages  Unitized Small Packages  Heavy/Outsize Pieces  Door-to-Door Velocity  Fastest (time critical)  Slowest (rate sensitive)

5. Freighter Friendly Airports 5 Industry Characteristics  Geographic Concentration  97 percent of world air freight tonnage moved to, moved from and moved within Asia, Europe and North America  56 percent of world air freight tonnage moved to, from and within North America alone 8,534 (8,234) 9,273 (8,394)8,497 (8,222) 3,682 (8,192)2,419 (1,721) 1,447 (1,344) MergeGlobal Inc.

6. Freighter Friendly Airports 6 Industry Characteristics World’s Leading Cargo Airports RankAirportRankAirportRankAirport 1Memphis11New York21Dallas/Ft Worth 2Honk Kong12Chicago22Atlanta 3Anchorage13London23Tokyo HND 4Los Angeles14Amsterdam24San Francisco 5Tokyo NRT15Incheon25Dubai 6Miami16Taipei26Seoul 7Frankfurt/Main17Indianapolis27Oakland 8Paris18Osaka28Beijing 9Singapore19Bangkok29Brussels 10Louisville20Newark30Philadelphia Source: Airports Council International Data 2001, Anchorage incl. transit freight

7. Freighter Friendly Airports 7 Industry Characteristics  Freight Forwarders’ Concentration  More than 5000 Freight Forwarders worldwide account for more than 80 percent of international air freight tonnage  Top 15 Freight Forwarders account for 61% of total international market

8. Freighter Friendly Airports 8 Industry Characteristics  Belly-Cargo Concentration  Up until recently, more than 60% of international air freight was carried by passenger/combi aircraft  Average Freight Load Factor lies within 40-60% range

9. Freighter Friendly Airports 9 Requirements for a Cargo Airport  Long Runway  Spacious Ramps and Aircraft Parking  Landing Aids  Freight Storage and Movement Facilities  Transportation Infrastructure  Support Infrastructure  Labor

10. Freighter Friendly Airports 10 Requirements for a Cargo Airport SUCCESS

11. Freighter Friendly Airports 11 Evolution of Cargo Airports  Global TransParks/ Cargo Hubs  North Carolina Global TransPark/ Kinston Airport  Industrial Airports  Alliance Airport, Fort Worth  Regional Air Cargo Centers  Memphis, Louisville, Wilmington (US)  East Midlands (UK)  Niche Market Airports  Manston (UK)  Leige (Belgium)  Capacity Reliever Airports  March Airport, Los Angeles

12. Freighter Friendly Airports 12 Europort Vatry, France  Central Rural Location  100 miles east of Paris, in Champagne region  Single 3,850 m runway  5000 acre area  4,200 sq.m. cargo terminal  100,000 sq.m. warehouse space  300,000 sq.m. warehouse capacity under construction  Highway Link

13. Freighter Friendly Airports 13 Factors Affecting Performance  No high speed rail link  SNCF has planned a Vatry rail terminal on Paris- Strasbourg line in 2006  Market domination by Freight Forwarders  FF based in major cities centers  Geographic Concentration of Cargo  FF collect freight from major city centers/ industrial hubs  Domination of non-express cargo market by passenger/combi aircraft  Belly-cargo is carried from/to major passenger hubs

14. Freighter Friendly Airports 14 Modified Checklist for Success  Long Runway  Spacious Ramps and Aircraft Parking  Landing Aids  Freight Storage and Movement Facilities  Transportation Infrastructure  Support Infrastructure  Labor  Strategic Geographical Location (preferably close to major cities)  Secure Ramp Space/ Warehousing Facilities

15. Freighter Friendly Airports 15 Secure Cargo Area-New Dimension Conventional Cargo Complex Conventional Cargo Complex with Add’l Security Future Cargo Complex with Full Screening - 1 Future Cargo Complex with Full Screening - 2

16. Freighter Friendly Airports 16 Encouraging Signs   Stringent Noise Restrictions at Major Airport/ Night Curfews   Major airports obtaining ownership stakes in cargo airports   Move toward application of integrated business model to heavy cargo

17. Freighter Friendly Airports 17 Conclusion “ A truly freighter-friendly airport offers around-the- clock operation, spacious ramps and aircraft parking, effortless transfer between the aircraft parking lot and warehouse, easy access to customers’ logistics centers and a strategic and geographical location easily accessible to its prime market” - S.J. Yang, Vice President, Korean Air