UPS 2006 Annual Report Download - page 29

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We maintain an inventory of spare engines and parts for each aircraft.
All of the aircraft we own meet Stage III federal noise regulations and can operate at airports that have
aircraft noise restrictions. We became the first major airline to successfully operate a 100% Stage III fleet more
than three years in advance of the date required by federal regulations.
During 2006, we took delivery of 13 Boeing MD-11 aircraft and six Airbus A300-600 aircraft. We have
firm commitments to purchase four Boeing MD-11 aircraft, and we expect to take delivery of these aircraft
during 2007. In February 2007, we announced an order for 27 Boeing 767-300ER freighters to be delivered
between 2009 and 2012 (this order is reflected in the table above). We also have firm commitments to purchase
eight Boeing 747-400F aircraft scheduled for delivery during 2007 and 2008, and two Boeing 747-400BCF
aircraft scheduled for delivery during 2008.
In addition, we currently have a firm commitment to purchase 10 Airbus A380-800 freighter aircraft and
options to purchase 10 additional A380-800 aircraft. In February 2007, we announced that we had signed an
agreement with Airbus to set out a timetable for deciding the status of this previous order. The agreement
specifies changed delivery dates for the A380-800 and provides for possible termination of the original purchase
agreement by either party later in 2007. The revised delivery schedule specifies the delivery dates for the 10
Airbus A380-800’s on order as being between 2012 and 2013, whereas we were originally scheduled to take
delivery of the Airbus A380-800 aircraft between 2009 and 2012. The signing of this agreement will have no
material impact on our results of operations or financial condition.
Vehicles
We operate a ground fleet of approximately 101,000 package cars, vans, tractors and motorcycles. Our
ground support fleet consists of over 26,000 pieces of equipment designed specifically to support our aircraft
fleet, ranging from non-powered container dollies and racks to powered aircraft main deck loaders and cargo
tractors. We also have about 41,000 containers used to transport cargo in our aircraft.
Safety
We promote safety throughout our operations. Our Automotive Fleet Safety Program is built with the
following components:
•Selection. Five out of every six drivers come from our part-time ranks. Therefore, many of our new
drivers are familiar with our philosophies, policies, practices and training programs.
•Training. Training is the cornerstone of our Fleet Safety Program. Our approach starts with training the
trainer. All trainers are certified to ensure that they have the skills and motivation to effectively train
novice drivers. A new driver’s employment includes extensive classroom and on-line training as well as
on-road training, followed by three safety training rides integrated into his or her training cycle.
•Responsibility. Our operations managers are responsible for their drivers’ safety records. We investigate
every accident. If we determine that an accident could have been prevented, we retrain the driver.
•Preventive Maintenance. An integral part of our Fleet Safety Program is a comprehensive Preventive
Maintenance Program. Our fleet is tracked by computer to ensure that each vehicle is serviced before a
breakdown or accident is likely to occur.
•Honor Plan. A well-defined safe driver honor plan recognizes and rewards our drivers when they
achieve success. We have over 4,200 drivers who have driven for 25 years or more without an avoidable
accident.
Our workplace safety program is built upon a comprehensive health and safety process. The foundation of
this process is our employee-management health and safety committees. The workplace safety process focuses
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