Purolator Air Network Dejan Markovic, Director, Air Operations, May 2, 2014 Agenda 1. Who is Purolator 2. What does Purolator offer 3. Air Operations 4. Dedicated aircraft 5. Networks 6. Performance, product and volume 7. Purolator today and tomorrow 8. Safety 2 Who is Purolator • Canada’s leading integrated freight, parcel and logistics solutions provider • Fully Canadian owned • A leader in shipping customer goods by ground and air to anywhere in the world • 125+ Purolator Retail Shipping Centres • 260+ Purolator Drop Boxes • 330+ Staples® locations • 12,000+ employees, including more than 3,500 couriers 3 What does Purolator offer • Purolator Same Day courier services • Next business day delivery within Canada to most points by 9 a.m., 10:30 a.m. and end of day • Purolator Express Evening Delivery service offered between 5:30 p.m. and 9 p.m. • Purolator Ground delivery 2+ days by 9 a.m., 10:30 a.m. or end of day • Saturday Service to most destinations in Canada • Purolator Expedited LTL services and International Freight Forwarding services * Certain terms, conditions and geographic restrictions apply (including point of origin and destination guarantee restrictions and money-back guarantee restrictions). See Purolator Terms and Conditions of Service at purolator.com for full details. 4 Purolator Air Operations • 420+ employees • 12 trunk bases and 5 feeder bases • Network consists of 12 Boeing B727-200F on the trunk system • Ten scheduled operating flights, one MTC and one hot spare • Two DC10-30 dedicated to the Canada Post network • Four Convair’s 580’s on the feeder network • B727-200F network operates approximately 13,000 block hours per year • 53 block hours per weekday • Network Monday – Thursday daily average 460,000 pounds per day • Network weekend daily average 345,000 pounds per day 5 Dedicated aircraft Boeing 727-200F Convair CV-580 6 Dedicated aircraft McDonnell Douglas DC-10-30/F - 2 DC-10's in storage at Hamilton Convair CV5800 7 Dedicated aircraft Metro II Piper Navajo 8 Trunk network YXS YVR YCD YEG YKA YLW YYC YXE YQR YWG YQT YMX YYJ YHM YQM YYT YHZ Weight in Pounds (Thousands) 9 British Columbia feeder network 10 On-time performance Percentage % 100 99.1 98.3 98.2 98.3 98.5 95 90 2008 2009 2010 Year 2011 2012 * Excludes weather delays 11 Product mix 18.4% 60.9% 8.2% 12.4% Purolator Canada Post Priority Canada Post RMS Other Co-load 12 Purolator today Innovation – continuous improvement cycle • Ground Handling Equipment o Lighter ULDs o Powerstow roller track conveyor – semi-automatic loading/unloading of cargo • Process collaboration (CPGOC) o Purolator and Canada Post o Trucking where and when it makes sense o Flying where it makes sense o Never sacrifice service • Capacity sharing • Facilities management sharing • Investment in engineering tools and people • Fuel Management Program o Aircraft flight planning o Ground equipment and vehicles (Innovation is not innovation in the presence of a missing link) 13 Purolator tomorrow Opportunity – new service models to ensure we remain competitive in the long-term • Cargojet awarded the CPGOC domestic air cargo network services contract – 7-year initial term • 727-200F, 757-200F, 767-200F, 767-300F • Modern operational efficiencies • Change in operating paradigm Variable cost model Virtual dedicated air cargo Network • Benefits threefold: service, scalability, costs savings • New service model conducive to future growth and investment • Confidence that this service agreement provides CPGOC with an unrivaled advantage 14 Purolator safety – evolution of team-based safety culture Objective – continuously promote engagement of EH&S initiatives • Annual employee survey pertaining to heath and safety, feedback reviewed and integrated into action plans • Periodic management pulse checks – reviewed monthly • Implementation of national health and safety dashboard • Implementation of management best practices: MBWA, near-miss reporting and root cause analysis • Enhanced safety footwear program (2012) reducing slip, trip, fall and foot injuries • Class 3 reflective uniform program improving safety during night operations • Acquisition of 300 new containers (ULDs) improving loading and handling safety • New main deck loaders with heli-roller technology, eliminating need to rotate containers (resulting in shoulder strains and injuries) • Improved freight-handling training package for all employees, reducing lifting and lowering injuries • Hearing conservation program for all airport operations 15 Purolator safety – trends Accident Frequency Trends 2008-2014 30 600 25 500 20 400 15 300 Accident Frequency Accident Severity 10 200 5 100 0 Accident Frequency Accident Severity 2008 2009 2010 2011 2012 2013 2014 18.28 24.03 18.58 18.84 19.65 18.14 10.89 320 496 210 345 373 301 60 0 16 Questions? Contact Dejan Markovic [email protected] Thank you
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