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BOEING AND UPS SELECT ST AERO TO PERFORM MODIFICATIONS AND MAINTENANCE ON MD-11 PASSENGER AIRPLANES

Travel News Asia Date: 18 January 2001

Boeing announced today it has selected Singapore Technologies Aerospace's (ST Aero) subsidiary, ST Aviation Services Co (SASCO), to modify 13 MD-11 passenger airplanes into freighters. In addition to the freighter conversions, UPS also has chosen Singapore-based SASCO to perform concurrent maintenance work on the airplanes.

In November 2000, UPS announced it would acquire 13 MD-11 freighters from Boeing. The agreement between Boeing and UPS also includes options for 22 additional MD-11s. Under the agreement Boeing will obtain the airplanes and convert them from passenger airplanes to freighters.

"We are delighted to work with ST Aero on the modification of these airplanes for UPS," said Bob Avery, president of Boeing Airplane Services. "They have done outstanding work for us on many programs, including the 757 Special Freighter program and the DC-10 conversion program."

ST Aero is a member of Boeing Airplane Services' international network of modification and engineering facilities. SASCO completed its first DC-10 freighter conversion in October 2000, making it the first DC-10 conversion program completed in Southeast Asia. While this will be SASCO's first MD-11 conversion, they have completed numerous maintenance programs on MD-11 airplanes.

"ST Aero is pleased to have been selected by Boeing to undertake the conversion program in addition to the successful modification programs for the DC-10 and 757 Special Freighter, " said Tay Kok Khiang, deputy president and chief operating officer of ST Aero. "We also are honored to have been selected by UPS for the maintenance work, and we will strive towards bringing greater value to our customers."

An MD-11 Freighter is capable of carrying approximately 190,000 pounds (86,168 kg) of revenue payload with a range of 3,800 nautical miles (7,038 km).

Modification work is expected to begin in the second quarter of 2001 and continue to 2004. Passenger-to-freighter modification involves primarily the removal of the passenger furnishings, installation of a main deck cargo door and cargo handling system.

UPS also is working directly with SASCO to perform transitional maintenance on the MD-11 aircraft. The maintenance work will encompass aircraft overhaul; systems upgrade; structural inspection; corrosion prevention and control program; and strip and repaint of the aircraft. Modification and maintenance are scheduled to take about three to four months to complete.

"We look forward to working with Boeing and SASCO on the conversion of these aircraft," said Bob Lekites, vice president, UPS Airlines Operations. "We feel confident that the modifications and maintenance performed by SASCO will provide a smooth transition for these planes into the UPS fleet."

Singapore Technologies Aerospace Ltd (ST Aero), the aerospace arm of Singapore Technologies Engineering Ltd (ST Engg), specializes in maintenance and engineering services for commercial and military aircraft. Through its international network, ST Aero provides total support on a wide range of high-quality, reliable and timely maintenance, repair and overhaul services on airframe, engine and component. ST Aero also provides high value-added design engineering and modification work including passenger-to-freighter conversion, avionics upgrade and other life-cycle extension programs. ST Engg is a technology-based, multi-national conglomerate providing one-stop integrated engineering services for the aerospace, electronics, land systems and marine industries. Through its worldwide subsidiaries and representative offices, ST Engg provides innovative and customized turnkey solutions to commercial and military customers.

Boeing Airplane Services provides a full range of total service solutions for the world's passenger and cargo airlines. Offerings include engineering retrofit packages, avionics upgrades, in-flight entertainment systems integration, cabin management solutions, passenger-to-freighter conversions, recovery and repair services, and aircraft performance improvements for Boeing commercial aircraft. Boeing Airplane Services is a unit of the Boeing Commercial Aviation Services organization and, as part of The Boeing Company, has access to all the experience and technical capabilities of the world's largest aerospace company. More than 11,000 Boeing aircraft are in operation today around the world.

Serving more than 200 countries and territories, UPS is the world's largest express carrier and largest package delivery company. With 238 owned jet aircraft, UPS Airlines is the 9th largest airline in North America and the 11th largest airline in the world. Headquartered in Atlanta, Ga.. UPS has been recognized by Fortune magazine for the past three consecutive years as the World's Most Admired mail and package delivery company.

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