Modern Logistics signs comprehensive diagnostics services agreement with CFM

May 13, 2014

WEST CHESTER, Ohio – 13 May 2014 - Modern Logistics S.A., Brazil's first logistics company to integrate air operations within its supply chain, has signed a comprehensive diagnostics services agreement with CFM International for the CFM56-3 engines powering its Boeing 737-400 freighter aircraft.

Modern Logistics will begin operations with 737-400 special freighter airplanes later this year as it launches the air solution of its integrated distribution platform. As part of its supply-chain, the company will roll-out a network of logistics centers that will focus on supplying Brazilian businesses with a "one-stop-shop" distribution solution. Launch is scheduled for the second half of 2014.

Under the terms of the agreement, CFM will provide 24/7 comprehensive engine data monitoring, engine exceedances, fault troubleshooting and provide engine trend reports to assist with its regulatory reporting.

"We are really pleased to welcome Modern Logistics to the CFM family of operators," said Jean-Paul Ebanga, president and CEO of CFM International. "We look forward to showing them the level of customer and product support on which CFM stakes its reputation every day."

"We are really happy to be working with Modern Logistics on this program," said Doug Izarra, vice president of sales for the Americas for CFM International. "We have long-term relationships with each member of the management team through various other entities and know that they will make a great success of this venture. For our part, we know from experience this level of support helps operators make better use of their assets and, more importantly, keep maintenance costs in check by alerting them to a potential high-cost failure before it happens."

Modern's Logistics competitive strategy is leveraging information and data to improve the efficiency of the supply chain and provide its customers with reliable, dependable, flexible and efficient integrated logistics services. Modern's time-definite air freight services are a critical link in the logistics chain and must support the high reliability service required. Modern´s aircraft fleet management strategy includes a continuous awareness of each aircraft through intelligent real-time engine diagnostics data transmission, collection, monitoring and analysis.

"We are extremely pleased to partner with CFM for the technical management of our aircraft engine. This partnership provides us with engine diagnostics analysis expertise and real-time operational support to reduce operational interruptions by proactively monitoring the health of our engines," said Gerald Lee, Chief Executive Officer for Modern Logistics.

"Partnering with CFM is another step in our mission in providing true world-class logistics solutions to the people and businesses of Brazil. This partnership is a major step toward our launch of air operations".

About CFM International

CFM International, a 50/50 joint company between Snecma (Safran) and GE, is the world's largest commercial engine supplier. The company has delivered more than 26,000 CFM56 engines to date and the fleet has logged nearly 700 million flight hours as the most reliable engines in the air.

About Modern Logistics S.A.
Modern Logistics is building the first Brazilian "end-to-end" logistics supply chain company to serve domestic, regional and international markets by integrating air and ground modes between strategically-located logistics centers. Modern Logistics' unique platform will help companies doing business in Brazil to realize their market potential through customized cost-efficient solutions.

Modern Logistics plans logistic centers in Brazil's established industrial regions and growing markets, equipped with state-of-the-art facilities and fully integrated IT systems. The company is taking delivery of Boeing 737-400F aircraft that will provide cost- efficient distribution on medium- and long-haul routes and connecting logistic centers on each end.
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