Fedex : Bringing more innovations in the 21st century
By 2027, it’s expected that
there will be more than 35,000 operational in-service commercial aircraft, of which 58 percent will be new-generation aircraft, designed and built post-2000.
With 600 aircraft of its own, the American multinational courier delivery services company FedEx is like a major airline with a bunch of planes to maintain.
But since its establishment in 1971, the company has branched out to offer different services related to the aviation industry and logistics so much that it’s already considered an expert when it comes to research forecast and market analysis.
Jack Muhs, Regional President of FedEx Express Middle East, Indian Subcontinent and Africa (MEISA), told Air Cargo Update the maintenance repair and overhaul (MRO) industry continues to be an important component of the aviation industry with aircraft continuously being replaced by newer models.
In less than 10 years, close to 60 percent of commercial aircraft flying will have more reliability, data collection and measurement tools that can provide advanced prognostics about the planes.
“By 2027, it’s expected that there will be more than 35,000 operational in-service commercial aircraft, of which 58 per cent will be new-generation aircraft, designed and built post-2000,” said Muhs who is based in Dubai.
Muhs leads more than 11,000 FedEx Express and TNT team members and is responsible for providing the strategic direction for the region.
Prior to his appointment in MEISA, Muhs served as President and CEO of FedEx Trade Networks, which specializes in air and ocean freight forwarding, customs brokerage and international trade facilitation solutions.
He also previously served as senior vice president of U.S. international, global planning, engineering, and trade services for FedEx Express, where he was responsible for the company’s U.S. export business, as well as the planning and engineering of the FedEx Express global network.
Read on the rest of his insights on Air Cargo Update’s exclusive interview with Muhs who since joining FedEx in 1984 served as managing director of global operations control; became vice president of global network planning and operations control in 1998; and was bestowed four times the FedEx Five Star Award, the company’s highest award for individual leadership and contribution.
As far as FedEx® Aerospace Solutions is concerned, how big is the UAE as a market and as a jumping point to reach other clients in the Middle East and North Africa?
The UAE is witnessing a growing aerospace manufacturing industry. It is also home to four airlines, of which two are major passenger carriers that operate a fleet of almost 400 aircraft combined. As aircraft fleets in the UAE and the wider region develop in response to consumer demand, and as the aerospace manufacturing industry continues to mature, the requirements for tailored solutions will also continue to grow.
FedEx Express chose the UAE as its headquarters and gateway for its Middle East and Africa operations more than 25 years ago, as the country’s convenient location provides access to markets in the East, West, and Africa.
Through the global FedEx air and ground network, our aerospace customers have access to more than 220 countries and territories.
The central location and connectivity through Dubai assists us in providing round-the-clock services to our aerospace customers. Aircraft on Ground situations can happen anywhere and at any time. An aircraft unable to fly is very costly for the owner, particularly if it happens to be a commercial airline, and resolving the situation as quickly as possible is essential.
Amongst the many services we offer, FedEx can ship aircraft components and other non-standard goods from North America to the UAE quickly and reliably.
Can you please give us a brief overview of FedEx® Aerospace Solutions’ capabilities and its adaptability to meet challenges in delivering vital parts needed in an aircraft?
SenseAware in particular has revolutionized logistics. It sends data from a shipment in near real-time to a powerful online application for monitoring and analysis. This gives FedEx and our customers complete visibility on a shipment at all times, including critical details such as the temperature, light exposure, humidity levels, and barometric pressure that the shipment experiences, as well as its location.
FedEx has a proud heritage with more than 40 years of operations and innovation, and the FedEx® Aerospace Solutions draws on our experience to provide services that make a difference to our aerospace customers.
FedEx® Aerospace Solutions is a portfolio of customizable services designed to address the express transportation and logistics requirements of the region’s growing aviation industry. This solution meets the time-sensitive demands of acquiring components to manufacture, maintain or repair aircraft, and get them back into service.
There are several services within the Aerospace Solutions portfolio that can be combined for a single approach, based on the customer’s requirements. For example, an Aircraft on Ground (AOG) needs a part urgently in order to get the aircraft flying again. Time is of the essence, as the longer a plane is grounded, the more money its owner loses – particularly in the case of commercial airlines. FedEx will work with the aircraft owner to have a solution tailored to their requirements, to ensure the required part gets to them as soon as possible.
Our Aircraft on Ground services include Next Flight Out, where FedEx organizes urgent air transport with a combination of the best available flight, collection and delivery services, and On-Board Courier, where a FedEx Express courier travels with the required part, supported by our special services experts. We can even charter a flight to manage the entire process from aircraft selection to delivery – an ideal solution if oversized or super-time critical parts are required. FedEx also offers airside deliveries, to take critical shipments directly to our customers’ facility within hours of it landing.
The process is monitored from start to finish by a team of our aerospace specialists, who can proactively address any potential obstructions in the shipment’s journey – because when timing is everything, even the smallest delays can be costly.
FedEx Express invented express distribution. We have more than four decades of global experience behind us, and over 25 years of experience and service to and from the Middle East. FedEx provides access and connects markets that comprise more than 90% of the world’s GDP, in an average of one to three business days.
We are constantly innovating to ensure that we can provide the highest level of experience to our customers. Our exceptional global network connectivity, wide range of customizable service offerings, and our dedicated people are our strengths.
FedEx differentiates itself by offering our customers business flexibility and speed to market using services such as our ‘next day service’ to the GCC, Americas and Europe, while offering 24/7 customer service and Money Back Guarantee for shipments delivered past the committed date. We also provide our customers with innovative solutions, online technology and automation tools that facilitate their shipping process and enhance their experience.
An example of this is the SenseAwareSMdevice we offer our customers. SenseAwareSM is a multi-sensor device that collects and transmits data from inside packages, pallets, trailers, and warehouses, using wireless communication.
The data is available in near real-time, giving our customers a bird’s eye view of their shipment, including location and other parameters such as temperature, light, humidity, and more. The parts shipped using FedEx® Aerospace Solutions can be very expensive, and SenseAwareSM provides our customers with peace of mind by giving them a complete overview of the status of their shipment at any given time.
Please share with us 1 or 2 incidents wherein FedEx saved the day for an airline or aviation client and its impact to its business in general.
While we can’t share details of specific examples for confidentiality purposes, our customers tell us that the timely delivery of replacement parts is crucial to them, and to companies in the aerospace industry.
An AOG situation can cost tens of thousands of dollars a day, and if a passenger aircraft is ground, it would require passengers scheduled on the flight to be either rerouted via alternative flights or airlines, or face time delays waiting for a replacement aircraft to arrive. The faster an airline can get a replacement part, the less the impact a mechanical malfunction can have. Quick resolutions can help save both reputation and costs.
As an expert in this type of industry, what is your general forecast for the need for MRO among freight carriers over the next decade?
The maintenance, repair and overhaul (MRO) industry as we know it will evolve in the next 10 years. Aircraft are continuously being replaced by newer models. By 2027, it’s expected that there will be more than 35,000 operational in-service commercial aircraft, of which 58 per cent will be new-generation aircraft, designed and built post-2000. These new aircraft offer improved reliability, with data collection and measurement tools that can provide data and advancedprognostics about the aircraft. This should enable operators to sidestep unexpected AOG situations by taking preventative action and scheduling maintenance.
With a fleet of more than 600 of our own aircraft, we understand first-hand not only how the aerospace industry is changing, but how MRO requirements are evolving. Innovation is in the FedEx DNA, and we are continuously developing our portfolio to deliver the quality of service our customers expect from us, no matter what their shipping requirements are.
How is technology changing the way things were for the MRO industry? Can you tell us more about FedEx’s SenseAwareSM product and its many uses? Please explain to us how SenseAwareSM technology can help companies save resources and further grow their business.
FedEx services incorporate innovative solutions to provide our customers with an enhanced experience, ranging from online and automated tools, to breakthrough technology such as SenseAwareSM, a multi-sensor device.
SenseAware in particular has revolutionized logistics. It sends data from a shipment in near real-time to a powerful online application for monitoring and analysis. This gives FedEx and our customers complete visibility on a shipment at all times, including critical details such as the temperature, light exposure, humidity levels, and barometric pressure that the shipment experiences, as well as its location.
This makes it an ideal solution for sectors that deal with highly valuable and sensitive goods, such as the healthcare, oil and gas, manufacturing, fashion, and, of course, aerospace industries.
SenseAwareSMcan be combined with FedEx® Aerospace Solutions and FedEx Priority Alert® servicesto provide additional transparency on any critical shipment’s journey.
Through our online system, customers receive regular alerts informing them of the current status of their shipment and any possible alerts, such as the package approaching its temperature limit or if it has been opened and exposed to the external environment. This gives customers the opportunity to intervene and control their shipment before reaching it reaches its final destination.