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FACT SHEET

September 22, 2015

Panalpina Charter Network

Summary
Since 1990 Panalpina has been the only major freight forwarding company to offer its Charter
Network for air freight. It is a unique asset that differentiates Panalpina from all other large freight
forwarders. The network uses leased and chartered aircraft to guarantee capacity, and is structured
to handle express and special shipments. One of the biggest benefits of the network is control, for
example when handling temperature sensitive cargo for healthcare customers. Panalpina not only
controls aircraft on specific routes, but the company designs and oversees processes on the ground
as well, ensuring the best possible control from door-to-door. The network also enables Panalpina to
route some of its flights to suit customers requirements, if the cargo volume is large enough. The
Panalpina Charter Network accounts for approximately 15% of Panalpinas air freight each year.

Network
The map below shows the airports (by code) that are currently served by the Panalpina Charter
Network. Panalpinas wet-leased Boeing 747-8 Freighter makes direct calls at five airports:
Luxembourg (LUX), Huntsville (HSV), Mexico City (MEX), Guadalajara (GDL) and Stansted (STN).

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A major benefit of Panalpinas Charter Network is that it uses less congested airports, such as
Luxembourg or Huntsville (Alabama, USA), to offer faster turnaround on the ground, and to reduce
the risk of delays. Routes in the network include:

Luxembourg-Findel Airport to Huntsville International Airport and back (as part of its Dixie Jet
service). When launched 25 years ago, this was a truly pioneering step; never before had a
freight forwarding company offered a scheduled cargo service between Europe and North
America.

Luxembourg-Findel Airport to Shanghai Pudong International Airport and back (as part of its
Panda Star service).

Hong Kong International Airport to Huntsville International Airport (as part of its Dragon Wings
service).

Huntsville International Airport to Viracopos International Airport in So Paulo (as part of its
Brazil Wings service)

Panalpina uses two main options for moving goods through its Charter Network. These are:

Leased aircraft
Panalpina operates one nose-loading Boeing 747-8F plane that it leases on an ACMI (Aircraft,
Crew, Maintenance and Insurance) basis from Atlas Air. It is the backbone of the Panalpina
Charter Network. The Boeing 747-8F is the largest 747 ever built, and the largest commercial
aircraft manufactured in the U.S. Maximum payload for the aircraft is 140 t and its maximum
take-off weight is 442 t. At 76.3 m long the 747-8F offers 16% more volume than its predecessor
(the 747-400F) and is able to transport up to 20 t more.

Chartered aircraft
As part of the Panalpina Charter Network, Panalpina charters either whole aircraft or arranges
part-charters. This happens on both a scheduled and ad hoc basis. Given the companys large
presence at Luxembourg Findel Airport, it also has an agreement with Cargolux, one of the
largest cargo-only airlines in the world. Similarly, it has agreements with Atlas Air and some of
the largest operators in Asia, the Middle East, Latin America and other territories, to ensure that
space is always available for customer shipments. For example, Panalpina charters a McDonnell
Douglas MD-11 freighter, which has an 80 t cargo capacity, from Ethiopian Airlines every
Sunday. It flies the plane from Luxembourg to Pointe-Noire (PNR) in the Republic of Congo.
From there cargo is transferred by a Panalpina-operated cargo ship to customers in the oil and
gas industry along the West African coast and by a designated trucking service to Cabinda in
Angola. Cargo destined for Cabinda passes through Panalpinas transit warehouse in Pointe-
Noire.

Special freight
The Panalpina Charter Network is ideal for the handling of special cargo such as pharmaceuticals
and medical equipment, microchips, oversized oil and gas equipment, helicopters, cars, radioactive
and explosive cargo as well as high-value goods.

In 2014, at least 25% of cargo moved on the Luxembourg-Huntsville route required temperature-
controlled shipping. Products for the healthcare, chemical, automotive and high-tech industries,
among others, require transport within strict temperature limits to ensure they arrive in optimum
condition. Dubbed Cool Plane, the Boeing 747-8F aircraft run by Panalpina includes temperature-
controlled shipping technology. Additionally, both the Huntsville and Luxembourg gateways have
dedicated temperature-controlled storage areas. Panalpina also uses SmartView, a sophisticated
wireless technology at these two core facilities to remotely monitor and document temperatures. This
kind of documentation has become mandatory and an integral part of the standard operating
procedures for many healthcare clients. Panalpinas solution for the movement of cool goods through

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the supply chain is built around an integrated control center that manages temperature sensitive
shipments end-to-end. Temperatures can be documented in the air, and actively monitored in the
transit warehouse and on the road. In instances of unwanted temperature deviations, Panalpina
intervenes.

Flexibility in timing, routing and delivery mode are key requirements of Panalpinas clients,
particularly in the oil and gas industry. Panalpinas oil and gas experts can be reached 24/7. They
use the Panalpina Charter Network to transport goods to the farthest corners of this world in the
most efficient way. The nose-loading capability of Panalpinas Boeing 747-8 Freighter is very useful
for shipping oil and gas industry goods. Depending on a customers need, Panalpina also regularly
charters other types of aircraft such as the MD-11, Antonov-12, Antonov-124 and Ilyushin-76.

Emergency Services
Panalpinas Charter Network has the flexibility to overcome any emergency issue that could cause
costly production downtime, for example in the oil and gas and automotive industries. The shutdown
of an oil rig or assembly line is the worst case scenario for any company in these industries. To
prevent this from happening, Panalpina deploys on-board couriers, part and full charter aircraft,
helicopters or any combination of transport methods for urgent shipments. Panalpinas experienced
team and global network ensures even the worlds most remote areas can be reached in the fastest
possible time.

The on-board courier is a service where a courier carries the time-critical shipment on-board a
passenger flight as baggage. In times of lean production management and just-in-time production,
Panalpina has extended this service and created tailor made transport solutions for the automotive
industry. This service has become extremely important for its global customers. It offers highly
reliable solutions for emergency shipments, 24/7, 365 days a year. With almost 500 on-board courier
services deployed every year, Panalpina is a market leader in this field.

Luxembourg and Huntsville


The companys air cargo gateways at Luxembourgs Findel Airport and Huntsville International
Airport are crucial to the smooth flow of the network. Both are large, sophisticated facilities and
importantly are situated at airports with minimal congestion in terms of passenger flights and
overall numbers of aircraft movements. Panalpina has experienced and dedicated staff at both
facilities 24/7 to ensure the trouble-free transfer of goods for its customers.

Road Feeder Service


Working in conjunction with the Panalpina Charter Network is a Road Feeder Service which applies
the same philosophy to road transport. The Road Feeder Service links Luxembourg and Huntsville
with other major centers and offers assured, scheduled road transport between the gateways and
Panalpina stations in Europe and the U.S. Panalpina works with a network of industry-leading
trucking subcontractors to provide an extensive truck network. In Europe alone, the Road Feeder
Service undertakes over 30,000 journeys and covers over 18 million km every year.

For more information, please contact:

Sandro Hofer
Corporate Media Relations Manager
Tel. +41 61 226 11 66 (Switzerland)
sandro.hofer@panalpina.com

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