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AEROSPACE CUSTOMER TALKWe continued to serve FedEx’s global needs through SASCO, MAE and DalFort.Boeing 757 Passenger-to-Freighter(PTF) conversion come to fruitionwith the successful completion ofthe design and engineering phase.Based at Boeing’s Wichitafacility, the ST Aero and BoeingB757 design team worked on theprototype aircraft.The firstproduction aircraft is expected tobe inducted into MAE, our USfacility in Mobile, Alabama by thesecond quarter of 2001.Building upon our other fruitfulcollaborations with Boeing,SASCO successfully completed itsfirst DC-10 PTF conversion aheadof schedule in November.performance of heavy checks onits first batch of B747-400 aircraft.SASCO completed a total of17 such checks for the B747-400maintenance work in its maidenyear of handling them.BUILDING UPON TRUSTWe continue to strengthen ourbonds with our most valuedcustomers and welcomed newWe continue tostrengthen ourbonds with ourmost valuedcustomers andwelcome new ones.Corporation, GE Capital AviationServices, and Helios of Cyprus,amongst others. Federal Express(FedEx) further extended apartnership with us that began inthe early 1990s by awarding athird line of B727 C checks toDalFort, ST Aero’s second USfacility in Dallas,Texas.We continueto serve FedEx’s globalneeds through our three facilities;SASCO, MAE and DalFort.In addition to being awarded aDC-10 maintenance contractfrom Orbis International, SASCOcontinued to be awarded maintenancecontracts from NorthwestHawaiian Airlines started sending work to Singapore TechnologiesAerospace (ST Aero) in 1996. Since then, ST Aero has been one ofHawaiian’s principal vendors for its JT8D engine maintenance work.Hawaiian is very pleased with the performance and operation of theJT8D-17/17A engines overhauled by ST Aero. These engines areoperated up to 14 flights a day on our inter-island routes. Despitethe high cycle consumption and operational fatigue exerted byinter-island routes on the engines, they performed with nosignificant problems. We are now in the process of phasing out theJT8D engines as we convert our entire inter-island fleet to newBoeing 717-200 aircraft. As we do so, marketing the JT8D engineswill be made easier by the positive industry recognition of STAero’s quality work. Hawaiian Airlines would like to commend STAero on its consistent high quality over the years. We are confidentthat the two companies will build upon the excellent relationshipand expand it further in the coming years.ROBERT W. ZOLLER HAWAIIAN AIRLINESEXECUTIVE VICE PRESIDENTOPERATIONS & SERVICEWe added another feather toour cap with the successful completionand redelivery of ‘Prototypenumber 3’ for the DC-10Advanced Common Flight-deckconversion to Boeing in MAE.The complex modificationwork involved the installation andintegration of digital avionics anddisplays in the cockpit, and theconversion of the aircraft cockpitfrom a three-man to a two-manconfiguration.Closer to home, SASCOexpanded its capability with theSASCO clinched contracts from leading European operators including Lauda Air,Airtours and AOM.ones including AirtoursInternational, Air Madagascar,Ansett Worldwide, AOM FrenchAirlines, British World Airlines,Cargo Lion, Emery Worldwide,Evergreen Aircraft Sales andLeasing, Finova CapitalAirlines and Japan Airlines forDC-10/MD-11 and B747 work;as well as maintenance contractsfrom leading European operatorsincluding Lauda Air for B767s andDC-10 contracts from AOM andAirtours.ENGINES OVERHAULED BY ST AEROACHIEVED AN IMPRESSIVE ON-WING TIMEOF MORE THAN 10,000 CYCLES, FAR72 • visionEXCEEDING THE INDUSTRY NORM OF 6,500 CYCLES.