2009 INFOline archive    [return to the main INFOline archive]
Scripts of the 2009 ABX Air INFOline are shown below in reverse chronological order. To view other archives, click here. To access the latest ABX Air INFOline (updated each Thursday afternoon), call (937) 366-4636 or click here.


December 31, 2009 - John Graber June 18, 2009 - Jan Woolums
December 24, 2009 - John Graber June 11, 2009 - John Graber
December 10, 2009 - John Graber June 4, 2009 - Jennifer Miesse
November 26, 2009 - John Graber May 28, 2009 - John Graber
November 19, 2009 - John Starkovich May 21, 2009 - Tammy Voss
November 12, 2009 - John Starkovich May 14, 2009 - John Graber
November 3, 2009 - Scott Glasser May 7, 2009 - Mike Gerdes
October 29, 2009 - John Graber April 30, 2009 - Todd France
October 22, 2009 - Bob Gray April 23, 2009 - John Starkovich
October 15, 2009 - John Graber April 16, 2009 - John Graber
October 8, 2009 - Scott Glasser April 9, 2009 - Debbie Loveless
October 1, 2009 - John Graber April 2, 2009 text - John Graber
September 24, 2009 - Jennifer Miesse March 26, 2009 text - Gary Stover
September 17, 2009 - John Graber March 19, 2009 text - John Graber
September 10, 2009 - Mike Gerdes March 12, 2009 text - Brady Templeton
September 3, 2009 - John Graber March 5, 2009 text - John Graber
August 27, 2009 - Tammy Voss Feb. 26, 2009 text - Bob Gray
August 13 and 20, 2009 - John Starkovich Feb. 19, 2009 text - John Graber
August 6, 2009 - Gary Stover Feb. 12, 2009 text - John Graber
July 30, 2009 - John Graber Feb. 5, 2009 text - John Graber
July 23, 2009 - John Graber Jan. 29, 2009 text - Terry Scherz
July 16, 2009 - Bob Gray Jan. 22, 2009 text - John Graber
July 9, 2009 - John Graber Jan. 15, 2009 text - Mike Gerdes
July 2, 2009 - Terry Scherz Jan. 8, 2009 text - John Graber
June 25, 2009 - John Graber Jan. 1, 2009 text - Tammy Voss

John Graber's INFOline  |  December 31, 2009

Good evening ladies and gentlemen. This is John Graber with the ABX Air Infoline for New Year’s Eve, December 31, 2009. I hope this finds everyone doing well and having a wonderful holiday.

Let me start this week by remembering the thousands of our servicemen and women deployed around the world, but especially in Afghanistan and Iraq. We live the lives we do because of their service. I always think of these Americans and their families at the holidays. Being apart is tough on a soldier all the time, but especially now. If you know a service member, look in on their family this weekend. They will appreciate that very much.

Safety
I think everyone has heard of the attempted bombing of a Northwest flight last week. The alleged bomber is from Nigeria. We routinely fly to and from Lagos, Nigeria for DHL. Though we have no indication anyone has targeted cargo aircraft in general, or our aircraft in particular, we are conducting a thorough review of our operations there. It appears we are doing everything we should be doing to ensure the Safety of our People on the ground there, and to ensure the Safety of our flight operations. If we find issues that need attention, we will deal with them quickly.

Compliance
In compliance this week, let me ask all of you to be careful in your New Year’s celebrations. New Years Eve is always a tragedy for someone – don’t let it hurt you. Follow the rules. Don’t drink and drive – and don’t let your friends and loved ones do it either. Enough said.

Pilot Severance and our new CBA
We have reached agreement on a new Collective Bargaining Agreement (CBA) with our pilots union. The new CBA is contingent on our also reaching a new contract with DHL, but we do have a new pilot contract. In 2008 DHL agreed to fund a pilot severance and benefit program. With the signing of the new CBA, DHL has funded the program for our pilots, and we are paying severance this week to employees who have been out of work for a long time.

Many People have worked for a long time to reach a new pilot contract. Bob Gray and Bob Boja led the effort from the company’s side. Captain Joe Muckle, First Officer Tim Jewell, Captain Rick Ziebarth, Captain Dave Ross, and First Officer John Liebenow all played key roles in their work for the union. These folks and others deserve our thanks for their countless hours of hard work.

We are working on a partial implementation of the new CBA. And while I’m talking about our pilots, I want to recognize the union’s generosity. The pilots’ union just contributed several thousand dollars to the Clinton County United Way. They made a large donation, and made it at a very difficult time for many of our airmen. When you see an ABX Air pilot, thank them for all they help do around Wilmington.

DHL Negotiations
Our discussions with DHL continued this week. We have been working with DHL for some weeks now on an agreement that will replace our current ACMI agreement when it expires next August. When we conclude negotiations, we’ll report our results to you.

Rumor Control
The rumor this week is that DHL has sold the airpark. That is not true. DHL is still negotiating with state and local officials about the airpark. They have not sold it.

Another rumor is that one of our aircraft, N312AA has been sold. That is not true. We lease 312 – and other aircraft – from ATSG’s CAM subsidiary. Nothing has changed regarding the ownership of the aircraft, or our lease of it.

That is all the news I have for this week. I wish all of you a Safe and peaceful New Year. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


John Graber's INFOline  |  December 24, 2009

Good evening ladies and gentlemen. This is John Graber with the ABX Air Infoline for Christmas Eve, December 24, 2009. I hope this finds everyone doing well and having a wonderful holiday.

Safety
In Safety this week, I am proud to be able to applaud the efforts of the leadership teams in our Postal centers. Our Memphis, Dallas and Indianapolis teams have made great strides forward in Safe operations. These three facilities are the only sort activities left in our company, and they have greatly improved their Safety performance in the past few months. As our 2009 peak operations wind down tonight, it is more than appropriate to thank everyone in our STC operations for your attention to Safety – and operational excellence. Thank you all for all you do for our company and our Customers.

Compliance
This winter marks our first one away from our own hub operations in Wilmington, and our first without our own organic deice personnel. Compliance in deicing is simply critical. DHL is using our FAA approved program in CVG, of course, and using their own personnel, supplemented by contract deicers from ASIG. Our Manager of Deice Operations, Kent Stewart, is well known to everyone during deice operations, and Kent is overseeing our deice operations in CVG. Things are running smoothly, and I’d ask everyone involved in to maintain your vigilance and keep them running that way.

DHL Negotiations
Our discussions with DHL continue. The feedback I get from everyone is that they want to know more about what is happening in our talks. It isn’t appropriate to comment beyond telling you that DHL and ABX are working closely together, and talking often. When we conclude our negotiations, we’ll report our results to you.

Rumor Control
The rumor this week was that we are investing heavily in our 767 simulator so we can sell it. That isn’t true. But I can see a couple of facts that someone could weave into that kind of rumor. We are upgrading the flight management computers in the simulator to align them with those used in our freighter fleet. And the CEO of a simulator company in Miami came to visit recently, wanting to sell us simulator time down there. We field inquiries about all our simulators from time to time, but we have no plans to sell our 767.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com


John Graber's INFOline  |  December 10, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for December 10, 2009. I hope this finds everyone doing well and staying warm.

Safety
With winter upon us in Ohio, please make sure you are ready to work Safely in the cold. We’re not running the Wilmington ramp operation, so we don’t have those risks this year, but everyone has to come to work in the weather. Make sure you slow down and get here Safely. And for our flight crews, this will be our first winter operating at the CVG hub. When the snow falls, things are going to be different. Give yourself the time you need to adjust to the conditions on the CVG ramp. If you are a mechanic at one of our northern cities – winter means its time to make sure you are Safe. If we all pay attention, we can get through the winter in good shape.

Compliance
In compliance this week, I need your help. Here in Wilmington, we have an issue with people going into closed buildings. Don’t do that. There is no reason for anyone to be exploring our closed facilities. We find lights on and doors open. That wastes money and causes extra work for our maintenance department - and it is dangerous. If you are alone in a building and you hurt yourself, it could be a long time before we find you. Please don’t go poking around in places you don’t belong.

DHL Negotiations
We are still working with DHL to define what happens after our AMCI agreement expires next August. As you know, Joe Hete, Quint Turner and I met with DHL in Bonn, Germany last month. We met again this month in Miami, and our meetings are continuing. When they conclude, we’ll report our results to you.

TNT Flying
You’ve heard me talk for years about the importance of our diversifying into ACMI charter flying. We have enjoyed some success in the ACMI marketplace – but today I have a different outcome to report to you. We have given TNT notice that we will stop flying from New York City across the Atlantic Ocean for them. We’ve been supporting the TNT network and other customers on that route through a block space agreement, or BSA. BSAs lower customers’ costs by allowing several shippers to share a freighter’s capacity. We started this flying intending to use TNT as the foundation to grow our business both across the Atlantic, and in Europe. Our efforts have not worked for us for several reasons. First, the economy has reduced demand for lift across the Atlantic, pressuring freight rates, and reducing our revenue. And second, our crew costs have been much higher than they should have been. This doesn’t mean the end of our ACMI business, of course. We fly a lot of ACMI business, but we can’t fly if we aren’t going to make money, and that’s what has happened here.

Management Surveys
If you’re a member of our leadership team, please complete our management survey. You’ll have an email in your Inbox asking for your participation. Hearing what our leadership team thinks is always important – but especially so now, given all the changes we’ve put our business through. Take the survey, take the time to make the comments you think are important, and tell us what we need to know. Thank you.

Tuition Reimbursement for 2010
We are not going to be able to extend our Tuition Reimbursement Program in 2010. The economic environment we face requires that we watch what we spend very carefully, and continuing the program into the New Year is not prudent. We will honor the commitments we made for your pre-approved classes completed prior to Dec. 31, 2009.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


John Graber's INFOline  |  November 26, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for Thanksgiving Day, November 26, 2009. I hope this finds everyone doing well and having a good holiday.

Safety
In Safety, we’ve now had exposure to the flu in our workplace in Wilmington, and I want to remind everyone to take the appropriate steps to protect yourself and those around you. Take the advice of the Centers for Disease Control and Prevention. Wash your hands with warm water and soap, and do that often; cover your mouth when you cough, and get a flu vaccine. We are making hand sanitizer available everywhere in our system. If you need it, use it. And if you do get the flu, stay home and take care of yourself.

DHL Negotiations
Joe Hete, Quint Turner, and I went to Bonn, Germany recently to meet with senior DHL leaders. We discussed what will happen after our ACMI agreement expires next August. We met for two full days in Germany, and DHL sent some of their folks to Wilmington this week, where we’ve continued talks. I understand there are a lot of rumors swirling about all this. Part of my job is to dispel rumors, but all I can say today, is that it isn’t appropriate to say more about where we are, except that DHL and ABX Air are meeting. We are talking about what follows when our ACMI agreement ends. As soon as we have something more to report, we’ll tell you. In the meantime, don’t listen to the rumors. It does no good.

Shoes in Lagos
ABX Air has done a lot of good in Nigeria. Many of you donated boots and shoes for the folks who work our flights in Lagos. We delivered those shoes Monday, November 9th. The Nigerian recipients were very appreciative and wanted to make sure everyone here heard their thanks. Our John Chiaffitelli and Fasiel Flash played a big part in getting the shoes delivered.

Thanksgiving
On this Thanksgiving Day, I want to thank all of you for all you’ve done for our company and each other this year. For all the problems we’ve had to face, the fact of the matter is that ABX Air is still here, and poised to grow. We could not do that without the hard work, dedication and professionalism of our people. Thank you for all you do, and for the way you do it. I wish all of you and your families all the best.

Rumor Control
In rumor control this week is the rumor that DHL has asked us to dedicate all our freighters to DHL flying. That rumor is not true. DHL is interested in transitioning to an all freighter fleet – one without PC aircraft – as soon as possible.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


John Starkovich's INFOline  |  November 19, 2009

Good afternoon. This is John Starkovich, Vice President of Human Resources with the INFOline for November 19, 2009.

ATSG Third Quarter 2009 Financial Results
Last Friday, ATSG announced its financial results for the 3rd quarter with revenues of $174.2 million and pre-tax earnings of $4.6 million from continuing operations. Consolidated net earnings were $3.7 million for the 3rd quarter. For the first 9 months of 2009, revenues totaled $573 million and net earnings from continuing operations were $17.9 million. This compares to revenue of $684.7 million for the same period in 2008 with net earnings of $6.3 million.

Pilot Negotiations
On Tuesday, November 17, 2009, the APA Teamsters Local 1224 advised that the Tentative Collective Bargaining Agreement reached on November 5th was ratified by the pilots. The ratification was an essential step in forging a new commercial agreement with our largest customer DHL. As you all know, ABX was notified by DHL that it did not intend to renew the currently effective acmi agreement beyond August 15, 2010.

The new collective bargaining agreement is contingent upon certain assurances and commitments from DHL that are required for both the union and ABX Air prior to being able to sign the agreement even though it has completed the union required step of ratification by the pilot group.

Open Enrollment for Health Care Benefits
Many people are asking about the annual benefits open enrollment. Plans are in the process of being finalized for the 2010 benefits program. The annual enrollment period is expected to open soon. Open enrollment materials will be mailed to your home address as soon as they are available.

Reminders

  • Please keep out of unoccupied and closed buildings on the airport property. Express authorization to enter closed buildings must be obtained from Gary Stover, VP of AEFS and arrangements can then be made for you to be accompanied by AEFS personnel. There are no exceptions to this directive and appropriate steps will be taken for any non-compliance.

  • We are asking everyone to be cooperative and patient when going through the security check points on base. Security guards are acting upon instructions. Failure to cooperate and to follow established procedure may result in local law enforcement being called in. If you are being asked by Security to do something that you feel to be inappropriate, please remain courteous and request that a supervisor be called &/or the ABX Corporate Security Manager. You can also comply and report the incident and circumstances to your own supervisor for follow up action. Confrontation and/or ignoring the directives of Security is simply unacceptable. Safety and security is important and your compliance is required.

  • The Fall Charity Drive continues. Your participation and generosity to others that are less fortunate and in need is greatly appreciated. Thank you.

That is all for this week. On behalf of all of us on the ABX leadership team, please accept our best wishes for a safe and Happy Thanksgiving. We are thankful for each of you and all that you do for one another and for ABX. Take care.


John Starkovich's INFOline  |  November 12, 2009

Good afternoon. This is John Starkovich, Vice President of Human Resources, with the INFOline for November 12, 2009.

Pilot Negotiations
Last Thursday night/Friday morning, negotiators for ABX Air and the Teamsters Local 1224 reached a tentative agreement on an amended collective bargaining agreement and the allocation of severance/furlough funds for flight crewmembers hit by the DHL restructuring. The terms of the agreement are currently out for a ratification vote by the pilots and the final results are expected on Nov. 18, 2009. In addition to the ratification vote, the agreement is contingent upon certain assurances and commitments from DHL that are required for both the union and ABX Air prior to being able to sign the agreement should it be ratified by the pilots.

An extraordinary amount of time and effort has been spent the last two months as the parties worked through some very difficult issues in arriving at an agreement that will help ABX be more competitive in the marketplace. Many people have been involved during the course of the negotiations and we appreciate all that has been done. Special thanks go to Bob Gray and Bob Boja who, in addition to their other duties, took the lead in working with the 1224 negotiating team to bring the discussions to this point.

ILN Airport
Currently many buildings on the airport are no longer occupied. Many buildings have been closed. This is a reminder to everyone to stay out of these buildings. This is for safety and business reasons as well as just plain common sense. With work no longer being performed in these buildings, there is no reason for anyone to be in them and under no circumstances should anything be removed from any of these buildings.

Should you or anyone in your respective departments feel that there is a legitimate business reason to go inside any of these buildings, express authorization must be obtained from Gary Stover, Vice President of AEFS and arrangements can be made for you to be accompanied by AEFS personnel. There are no exceptions, and appropriate steps will be taken for any violations of this directive.

Security
We are asking everyone to be cooperative and patient when going through the security check points on base. Security guards are acting upon instructions and directions that they have been given to follow and are doing their jobs. Being courteous to one another is necessary even when being requested to do something that we may feel to be burdensome.

Fall Charity Drive
Just a reminder. There is still time to participate in the Fall Charity Drive. There is no amount that is too small when given to others in need during this holiday season and throughout the year. It can be done with a one-time contribution or by payroll deduction. Thank you to those that are already contributing or have signed up to do so.

ABX Workforce Downsizing
Regrettably, earlier this week over 50 ABX employees were notified that their positions at ABX were being eliminated. As ABX continues to deal with the restructuring that has occurred at its largest customer, DHL, and the current economic conditions, it became evident that further adjustments were needed here at ABX as well. Those notified were given a December 31 termination date.

Cafeteria
For many years, the ABX employees have enjoyed having AVI provide on-base facilities for a hot lunch with a variety of menu items beyond vending machine fare. Please consider using the cafeteria when you decide to buy lunch. Absent having enough customers, we could lose AVI and the convenience of a lunch facility on site.

That is all for this week. Take care.


Scott Glasser's INFOline  |  November 3, 2009

Hello. This is Scott Glasser, Vice President of Business Development, and this is the INFOline update for Nov. 3, 2009. In this update I will address the non-DHL business.

Europe
In Europe we continue to operate the North Atlantic flight. Although loads continue to climb, we are challenged with the increase in fuel price and handling costs. Yields continue to be below our operating costs.

In Brussels we have added Leipzig to the Brussels-Lagos flight. This flight is scheduled to operate through March of next year. We are working with our customer to extend it further. We continue to get several charter requests in the EU and hope to utilize the Liege aircraft in its down days, Sunday afternoons and Monday mornings.

Americas
In LA we are working on an extension to our Mexico operating aircraft. The customer has requested an extension for an additional year. We hope to have this in place shortly. The West Coast operation is going well.

In Miami we continue to struggle with the low rates in the market. With fuel prices on the increase we have begun to raise our rates as the 767 becomes more attractive, given its fuel efficiency. We have already increased charter requests and will do the same for long-term contracts as they come up for renewal.

Crew Scheduling
Crewing for flights and picking up open time continue to be a struggle. We are working on a few ad hoc charters and completed one this weekend between CVG and Long Beach, moving aircraft engines for a new customer. As we enter the fourth quarter, we'll be asking our employees to work additional ad hoc charters. Please be aware that this is an important time for our company and our business; it will take the cooperation of all of us to make it a successful one.

Also be aware that even though we celebrate certain holidays such as Thanksgiving, these are not internationally recognized holidays, and many of our flights will operate on normal schedules during these times.

Postal Operations
On the USPS STC front, we have secured the Dallas annex again this year. We have been contracted by the US Postal Service to operate this seasonal facility for the last four years. Memphis and Indy will see the planned increases in seasonal volumes. I am confident that we will be successful again this year, given our experienced management and crew at these facilities.

Thank You
As employees of ABX, thank you for all you do in making our business both successful and safe.


John Graber's INFOline  |  October 29, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for October 29, 2009. I hope you are all doing well.

Safety
Fall weather is upon us now, and we’ve had several days of rainy weather. The good news – and that’s all I have – is that we’ve made it through the rain without injury or incident. That is a good job, and I thank you all for the hard work it takes to run our company Safely during times of inclement weather.

Pilot Negotiations
Your company and our pilots’ union have been at the negotiating for over a month, hammering out the final details of a new contract. Everyone hears the rumors that we are very close to a deal. I think that is true, and I think the work everyone is doing here at the tail of the process is important, and difficult. Everyone at the table is working in good faith to reach a deal, and when they do, we will report that agreement as quickly as possible.

UPS Results
UPS reported its third-quarter results last week. I mention that here because UPS is the largest express operator in the country. Last quarter their revenues fell 15%. Their operating profit was down 43%. UPS said their average daily package volumes – air and ground – fell 5%. Analysts said UPS’ results reflect the ongoing weakness in our economy.

Beth Huber
Tomorrow is Beth Huber’s last day with ABX Air. Beth’s been here over two decades, and is leaving from her role as our leader of community affairs. We have said goodbye to many, many good People over the last 18 months. You all know that. I want to note Beth’s leaving because she has been a tremendous help to me in my time here. Restructuring our company has been a very hard job, and a huge part of that job has been getting the right thing said the right way at the right time. Much of the credit for our being able to do that goes to Beth. She has been an honest, unyielding, advocate for our People and our company. She has steered us in the right direction time and again. And she will be missed. If you see Beth around town, please wish her well.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com


Bob Gray's INFOline  |  October 22, 2009

This is Bob Gray, Vice President of Safety, Compliance, and Government Affairs for the October 22, 2009 ABX INFOline.

In early October, ABX Air successfully completed a comprehensive audit conducted by SH&E to retain its standing on the IOSA, or International Airline Transport Association Safety Audit Registry. The International Airline Transport Association (IATA) represents some 230 airlines in over 120 countries from around the globe. Carrying ninety-three percent of the world’s international scheduled traffic, IATA members include the world’s leading passenger and cargo airlines. The IATA Operational Safety Audit (IOSA) has become the benchmark for global safety management in airlines The IOSA standards incorporate many requirements from the International Civil Aviation Organization (ICAO), the FAA, and other regulatory agencies throughout the world, as well as best practices from the top airline audit programs in existence today. The audit areas included Organization, Flight, Operational Control and Dispatch, Aircraft Engineering and Maintenance, Cabin Operations, Aircraft Ground Handling, Cargo, and Operational Security.

We continue to work with our Postal Hub management to provide a safe working environment for those hub employees. Most recently we have worked to modify the OSHA required Monthly Safety Training to more closely fit the exposures at the Postal Hubs. In addition, three new Safety Training Bulletins have been developed on the safety exposures related to the Postal Containers. Existing employees have been trained with these, and these will be used with any new employees to make sure they understand the hazards associated with these containers.

From an environmental perspective, our Recycling Program is being restarted. We're starting the collection and recycling of paper and cardboard.

The CVG Operation continues to improve. It is important that all of you currently involved in the CVG operation provide your input regarding any issues that you feel need to be addressed. DHL has been very responsive at addressing operational concerns that arise.

The Company and the Pilot’s Union continue to meet his week in order to hopefully finalize a Collective Bargaining Agreement. The emphasis has shifted this week from negotiating the terms of the contract, to agreeing on the actual language that reflects those terms and that will appear in the CBA. This is an important part of any negotiations so that future debates and disagreements regarding the intent of language can be minimized. The discussions have been very positive and constructive.

That’s all the information I have to share with you this week. Thank you for you hard work and dedication to make our Company successful.


John Graber's INFOline  |  October 15, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for October 15, 2009. I hope you are all doing well.

Safety
I’m sure you’ve heard all about the H1N1 flu this year. There is a lot of information – and misinformation – out about the flu, and how to avoid it. We’re taking precautions at ABX Air. We’re taking the advice of the Centers for Disease Control and Prevention, and you will find our recommendations to protect yourself from illness during this flu season on our web site. The best things you can do are all common sense – wash hands with warm water and soap, and do that often; cover your mouth when you cough, and get a flu vaccine. We are making hand sanitizer available everywhere in our system. If you need it, use it. And if you do get the flu, stay home and take care of yourself. Don’t make your co-workers sick. There is much more information about the H1N1 flu available at the Centers for Disease Control and Prevention website. It is www.cdc.gov

Compliance
In compliance, you’ve heard me talk about how important it is to follow the rules. Well, we recently got a letter from the Federal Aviation Administration telling us we did just that. The letter referred to a maintenance issue the FAA was investigating from several years ago. An FAA inspector had alleged that we had broken FAA rules in making a repair, and the FAA investigated the situation. We cooperated with them fully. In their recent letter, the FAA, told us we had not done anything wrong. I always welcome outside scrutiny of our operation. I think it is a good way to see where we’re doing well, and where we can do better. In this case, the FAA dug deep into our processes, and found we had done exactly what we were supposed to.

Pilot Negotiations
We were scheduled to meet in Washington D.C. this week in front of our federal mediator for another round of pilot negotiations. However, both sides felt they could make good progress without the mediator’s help. So we spent time at the table without the mediator, working on the issues that remain. I want to thank the folks on both sides of the table. Getting quickly through these negotiations is very important, and I appreciate the work everyone is doing.

ABX Air Business Update
On the ABX Air front, our DHL flight operations in Cincinnati are going well. Our Customer there is working hard to stabilize its US network after last summer’s move, and indications are their efforts are paying off. We continue to provide exemplary service to DHL, running at 100% on time most nights. If you are part of that effort, please keep up the good work. It is very important.

Air Cargo Trends
The International Air Transport Association (IATA) has released August results for international air traffic. IATA said freight traffic was down 18.0% year-over-year. That lower traffic volume has been accompanied by lower yields, which means not only are carriers hauling less freight, but they are getting lower prices for the freight they do carry. Making matters worse, fuel prices have risen from their lows earlier in the year. IATA says this combination of factors produces a grim profit picture, and IATA believes the global airline industry will incur an $11 billion loss this year, on top of a $16.8 billion loss last year.

That is the world we’re flying our charter services in, so you can see how important it is that we provide the best, most reliable product at the lowest possible price. That is how you win in the ACMI freight world.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Scott Glasser's INFOline  |  October 8, 2009

Script unavailable.


John Graber's INFOline  |  October 1, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for October 1, 2009. We had our first frost warning last night in Wilmington. I hope you are all ready for the cool weather.

Safety
Do remember the hazards associated with cool weather. I talked about this in my last message, but it is very important. Plan ahead. Make sure you have the time you need to do your job Safely as the weather changes.

Compliance
In compliance, I want to congratulate our sister company, AMES. I was touring their Base Shops facility today with a potential business partner and noticed Base Shops’ "Time Lost Since the Last Injury" sign. That is a good statistic, and a better one when you consider that their business changed entirely in May. Compliance with procedure is a key component of building a solid Safety record. We’re one of AMES’ largest Customers, so their compliance record is important to me. It was good to see them doing what they’re supposed to. As you work here at ABX Air, make sure you’re doing the same thing.

ABX Air Business Update
For months you’ve heard me tell you that ABX Air has to get its costs in line with the marketplace if we are going to succeed as an ACMI carrier. Hundreds of you have played important roles in our work to restructure our company. You’ve redesigned your workflow, consolidated, cut the amount of work we do, and felt the impact of more work and less pay.

In the last sixteen months we’ve reduced our costs almost everywhere. We’ve lowered the cost of our executive team by eliminating Senior Vice President roles, cutting the number of executives we have, and lowering executive pay. We’ve reduced our costs in aircraft maintenance, in flight operations management, in ground operations, and in our administrative organizations. We’ve reduced our material and inventory and our physical footprint.

One of our most remarkable changes was in our Air Park Services Department. That organization has transformed itself from an ABX Air department of over 1,000 People into a profitable new business of less than a hundred. ABX Equipment and Facility Services – AEFS as the new business is known – has a growing Customer base and formidable internet presence. They’re competing and winning business all across the country.

Our charter airline operations, our largest business segment, has not enjoyed the successes of our other endeavors. The worldwide economy is pressuring every ACMI freight operator, but it is especially impacting us, because we have the highest cockpit crew costs of any ACMI carrier in the world. And though we’ve spent the past 16 months completely changing every other element of ABX Air’s cost structure, we have yet to change our pilot costs.

Joe Hete has been at the table for over ten days of meetings with our pilots union, working directly to reach agreement on a contract that allows us to compete in the marketplace. We’re working with a real sense of urgency because DHL is in its window to decide how it is going to fly its freight after our contract with them expires next August. Recently Joe, Quint Turner and I met with senior DHL leaders. DHL is concerned ABX Air won’t be able to give them a competitive price for our services going forward because of our high pilot costs – and if they can’t afford to fly with us, they understand they have to find another provider very soon. These senior DHL leaders say they want to use us, but that they cannot afford us at our current flight crew costs.

We hope to reach agreement with our pilots union very soon, and we need to.

The Forest and the Trees
I attended the Cargo Facts annual conference in Seattle. Over 100 operators, Customers, and manufacturers gathered for several days of discussions. And this week all of ATSG’s business leaders came together with ATSG’s board. We spent hours reviewing how ATSG’s companies are faring in today’s marketplace, and to work on how we can all do better. These meetings provided me the opportunity to talk with air cargo experts, and competitors – and thinking about how we’re doing in the marketplace.

What I gathered from my meetings and discussions with experts from all over the world and from within ATSG, is that we’re on the right path at ABX Air. It is clear we have to compete on price in the marketplace. All our major competitors offer service of a similar quality – they must be considered for any job – so we have to compete on price. In spite of the horrible economic environment, it is also clear that most of our competitors are surviving. Some have failed, to be sure, but every one of the others is surviving because they’ve found a way to exploit some element of the marketplace and run their business at lower costs. And it is crystal clear to me that competitors are accelerating their ability to meet the changing demands of the marketplace. Where track charters were once the rule, our competitors are moving to the ad hoc arena – and making money there. Lastly, it is easy to see the difference between our competitors who are focused on their Customers, and our competitors who are not. Those with a Customer focus are winning business today. The others are losing business.

All those things – lower price, the ability to be a fierce competitor, the ability to change quickly and focus on our Customers –are the things we’re trying to do here today. They are the attributes that will make us successful. Conversely, our inability to compete in these key attributes will define our failure.

Think about these things, and help us succeed every day.

AMES Vacancies
AMES has openings for about 100 People. They are looking for skilled technicians and support staff, so if you know someone who is looking for a job, tell them to go to the AMES web site to see the specific opportunities.

That is all the news I have for this week.  If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Jennifer Miesse's Infoline  |  September 24, 2009

Hello, this is Jennifer Miesse from Human Resources with the ABX Air INFOline for September 24, 2009.

Safety
Let’s begin with Health and Safety. ABX Air is putting together a response plan in case this season's flu outbreak is more severe than usual, but there are things you can do right now to help protect yourself and others.

  1. The first step in prevention is to practice good hygiene. That means cover your coughs and sneezes; wash your hands frequently using soap and hot water or hand sanitizer; periodically wipe down your workspace with Clorox type wipes (especially in shared work spaces); and last but not least, take care of yourself. Make sure you get plenty of rest, exercise, and eat healthy foods.

  2. The second step is to recognize the flu symptoms. These include high fever (over 100 degrees Fahrenheit) or chills, AND cough or sore throat. Other symptoms may include: runny nose, body aches, headache, tiredness, diarrhea, or vomiting.

  3. And lastly, don’t spread the flu. If you are sick with flu-like illness, stay home and take care of yourself. We recommend you stay home for 24 hours after your temperature is normal.

We will provide flu shots soon at the Healthcare Center, or you may contact your preferred health care provider. Watch the Communication Centers, MyABX.com, and this INFOline for more information about our efforts to keep everyone healthy this flu season.

Customer News
I have several pieces of good news to pass along related to our charter customers.

First of all, I'm pleased to announce that ABX received a renewed contract to continue our participation in the Civil Reserve Air Fleet (CRAF). This allows us to keep providing international airlift for the U.S. military, a responsibility we are proud to undertake.

Secondly, ABX Air recently flew over a thousand live fish from Barbados to England, in what may be the largest shipment of live fish ever flown into the United Kingdom. The trip was chartered by Britain's National Marine Aquarium in Plymouth. This success is another great example of how ABX Air can excel by matching our expertise with the needs of the marketplace.

Thank you to everyone involved in keeping these customers happy.

Pilot Negotiation Update
Joe Hete met with union officials in DC again this week on Monday and Tuesday. Both parties are working hard to complete the collective bargaining agreement. While no agreement was reached, progress was made.

On Monday, we also held the third Pilot Information Conference Call. During this call, hosted by John Graber, negotiation and company updates were presented and pilots were given the opportunity to ask questions. Select questions sent in by email were also discussed. These calls and the pilot information web site have been excellent sources of information on the status of our pilot negotiations. A transcript and recording of all three conference calls are available at www.abxpilotinfo.com, along with the latest company proposals to the Union.

We look forward to additional calls and web updates in the next few weeks.

That is all the news that I have for this week. John Graber will be back on next week’s INFOline. Thanks and take care!


John Graber's Infoline  |  September 17, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for Sept. 17, 2009. I hope everyone is doing well.

Safety
Starting with Safety this week, I need you all to pay attention to the coming cold weather. We’re going to have frost before too long, and we’re already breaking out warm clothes. Think about what you need in your car to drive Safely – get the ice scraper out now, and use it. Think about the extra time you’ll need to get where you’re going, and make sure you have that time. Pay attention to carbon dioxide hazards around you. Every Fall someone gets hurt because they didn’t think about how cold weather changes our routines. Don’t let it happen to you.

Compliance
Think about cold weather in compliance as well. Give yourself extra time to do the job. Get the help you need. Don’t use cold weather as an excuse to cut corners.

ABX Air and DHL
We have signed agreements with DHL to run several broad lines of business for them going forward. We are going to run the Wilmington Air Park for at least the next year for DHL, we’re providing them nationwide support for their Ground Support Equipment, and we’re providing DHL with load planner support in CVG for at least six months.

Much of this work we did for DHL under our Hub Services agreement. That agreement expired in August, and with the new contracts we’ve signed, we’ll continue working ground support for DHL going forward. These aren’t multi-million dollar agreements with DHL as we’ve had in the past, but they are examples of how we’re fighting for business and to save as many ABX Air jobs as possible.

We’ve kept many of you waiting before we could post the jobs these contracts cover. It wasn’t prudent to post positions without a signed contract to support them, but those jobs are out there now, and we’ll fill them as soon as possible. Thank you again for your patience waiting for us to finish the contract process with DHL.

Marketplace News
I’m in Seattle as I write this week’s INFOline, at the annual Cargo Facts conference. People interested in cargo airlines from all over the world come to this conference every year to hear the latest developments in our business.

ATSG was well represented at the conference, with ABX Air, CAM, LGSTX, ATI, AMES and CCIA all here working to find new markets and new Customers for our separate businesses.

This year I was part of a panel discussion that included senior leaders from FedEx, Delta Airlines, and Atlas Air. I thought you’d be interested in hearing the general consensus of the panel on several points.

  • When will the economy recover?
    Everyone agreed that in terms of Gross Domestic Product (GDP), the worldwide recession has bottomed out, but that the recovery will take a long time – as long as two years. And there is also agreement that GDP growth will come faster than job growth, making any recovery for the workforce later than for the economy in general. That is because most companies will, at the start of the recovery, produce more with the People they already have on hand, before they hire more People, so job creation will lag.

  • If 2007 was a peak year for the air freight business, how long will it take to get back to that peak?
    The panel said a full recovery of air freight won’t happen earlier than the last part of 2011.

  • Given the large number of freighters parked during this downturn, will there be a shortage of lift when the recovery kicks in?
    The panel said there might be a shortage, but that any shortage would be more because of higher fuel prices that make the economics of older freighters unworkable in the marketplace.

  • And the panel was asked if we saw a shift from air freight to other modes of transportation because of high fuel prices.
    Everyone agreed that, particularly in the domestic market, there was a large shift away from air and into trucks as shippers were better able to deliver time-definite product.

While I was up in the northwest, I stopped in to visit a potential Customer for our AEFS division. We are working on an opportunity to work with larger, non-airline Customers, and I think we have a good chance of success. We’ll tell you more about this opportunity as it firms up.

Amerijet Strike
Early this week Amerijet and its pilots settled on a new contract. That is important to us because our ABX Air pilots refused to fly our normal Amerijet business, costing our company hundreds of thousands of dollars in revenue. Pilot sick calls are costing us millions of dollars this year, and having normalcy back in Miami is very important to our ability to operate there.

Pilot Negotiations
Joe Hete met with representatives of our pilots union again this week as both sides work to reach agreement on a new pilot contract. I got an email from a pilot who had been told company leaders had refused to meet with the union. That isn’t true.

That is all the news I have for this week.  If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Mike Gerdes' Infoline  |  September 10, 2009

This is Mike Gerdes, VP of Flight Operations with the ABX Air INFOline for Thursday, September 10, 2009.

Safety
It may still be warm here in Wilmington and other parts of the country, but we are approaching the cold weather season. For flight operations, a review of our cold weather procedures is appropriate, as we are flying to northern destinations. For everyone else, now is a good time to plan ahead for the first cold evening or night.

Compliance
Last week we had an audit organization in from the International Air Transport Association conducting our second IOSA operations and Safety audit. The audit was successful with just a few findings and observations. One exception was our Dispatch organization, which had no findings or observations. This is a remarkable achievement. I want to personally thank Mark Wilt, Jim O’Grady, and the entire dispatch team for a job well done. Also, thank you to everyone that participated in the audit and evaluation. It was a time consuming and difficult task to prepare. Your hard work is recognized in the few findings the audit team had.

Africa Update
Our flights to Lagos, Nigeria continue. When we first announced this flying, the contract ran though September. It has now been extended until the spring of next year. Everyone has been doing an excellent job supporting and operating these flights for our customer. Your hard work is paying off with the continuation of this flying.

Loads on these flights have been excellent, to the point that aircraft are leaving Liege (LGG) at maximum weights, which has caused some airport noise issues in Belgium. We are working to solve the noise issues with the timing of our flights, or some possible reroutes or tech stops to reduce the weight from LGG.

Thank you to everyone that donated or participated in the shoe donation program. That effort made a difference to many people in need.

Amerijet Strike
As John Graber mentioned in last week’s INFOline, the Amerijet pilots are still on strike in Miami. This week, however, we have word there is an agreement on the table that is going out for a vote. We may know the results of that vote next week. ABX Air’s flying for Amerijet does not meet any of the tests for “struck work”. We’ve flown our Amerijet work for four years. But our crewmembers are being threatened and intimidated to the point they call in sick rather than legally fly in Miami. Fortunately we have been able to operate a few of our scheduled flights because of the dedication of one of our management crews. It is interesting that information we have from American Airlines, the largest airline in MIA, is that they never stopped accepting Amerijet freight on their aircraft, following the same principle that governs our Amerijet flying. As our line pilots continue to call in sick for our Miami flying, we are letting down our Miami Customers and threatening the viability of our Miami base. We continue to monitor the situation and hope that the strike is resolved before the damage to us in the Miami marketplace becomes permanent.

Pilot Negotiations
Talks continue between the Company and the pilots union. Information is being exchanged this week to provide data to help close the remaining open articles for the collective bargaining agreement. We remain committed to the process and hope to reach resolution soon. We are scheduled for mediation in Washington DC September 22-24th.

We did conduct another pilot information call last week. An update to negotiations was presented with a question and answer session. We appreciate the response we have received from line pilots regarding these calls.

That is the INFOline update for this week. Thank you for your continued professionalism and have a safe week.


John Graber's Infoline  |  September 3, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for September 3, 2009. School is back in session in southwest Ohio. I hope everyone had a safe summer. Watch out for our kids on the street.

Safety
We don’t have as much traffic on the ILN ramp as we have in the past. I see people starting to get lax about drive lane discipline and speed limits. If you’re driving on the ramp, please remember that our procedures have not changed. Follow our rules for ramp Safety.

Compliance
This week we have an Audit Organization in from the International Air Transport Association conducting our second IOSA operations and Safety audit. We gained IOSA certification two years ago and are looking to renew that certification now. An IOSA audit team looks to see if we have clearly defined how we do things; that we’ve written down those things that need clear definition, and that we actually follow what we’ve written down. Given all the changes we’ve made to our business this past year, having external, fresh eyes looking at what we do and how we do it now is important. When we hear the results of the audit, I’ll let you know how we’ve done.

Our quality and operational leaders in flight, maintenance, Safety, and training have been working hard for a long time to prepare for this week. Thank you to everyone who has helped us put our best foot forward.

ABX Air and DHL
We have agreed to support DHL’s Ground Service Equipment in CVG for the next year. This is one of the biggest contracts our new Airborne Equipment and Facility Services (AEFS) sub has won. Gary Stover’s organization has hired supervisors and mechanics who will work in CVG on DHL’s equipment. We are very close to signing a contract with DHL to support their Ground Support Equipment at their Outbase locations too. AEFS will run this contract in support of DHL and employ technicians at almost every DHL station.

We are still working with DHL to reach an agreement on running the airpark in Wilmington. They agree that they want us to do that work for them, but it is taking longer than it should to reach a signed agreement. Gary Stover’s department has had to delay posting positions for the airpark while we wait. I know that delay creates a real worry for some of you who want to know what the jobs that are available going forward. We are posting those positions this week. I apologize for the delay.

Marketplace News
The Association of European Airlines reported June cargo traffic down 20.7%, year over year, continuing the pattern of steep year-over-year declines that began in late 2008. Traffic on the two major trade lanes shows no signs of recovery, with Europe-North America traffic down 21.8% and Europe-Asia Pacific traffic down almost 25%.

We are trying to fly ACMI charter in the teeth of the worst global downturn since the great depression, and these figures show how hard it is to find freight and fly it profitably today.

Amerijet Strike
As many of you know, the pilots of Amerijet in Miami are on strike. Amerijet is our largest customer in Miami. They operate their own airline, and use us as an ACMI carrier. We have flown Amerijet freight on our aircraft for four years.

The Amerijet pilots are Teamsters, as are ours, and ABX Air’s pilots’ union president has pledged to support the strike. Our pilots are calling in sick for Amerijet trips.

The Teamsters are calling all Amerijet freight “struck work” or “struck freight”. It is not. We are asking our employees to follow the federal labor law that governs us: the Railway Labor Act.

When an ABX Air pilot fails to fly what he or she is legally required to fly, it hurts our customer, but it hurts us more because we have to pay the pilot and we don’t get any revenue for the trip. Since the law supports our continuing the flying we’ve done for years, people are misrepresenting facts and using scare tactics to pressure our pilots into doing something that is illegal, subjecting them to disciplinary action. If the situation isn’t resolved we won’t have the business to keep flying in Miami.

The Amerijet strike hits just as we’re making real progress on the negotiations front – both with your union and DHL. We’re trying to stay focused on reaching agreement with our pilots and with DHL so we can cement a strong future for our company and our people.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Tammy Voss' Infoline  |  August 27, 2009

Hello. This is Tammy Voss with the ABX Air INFOline for August 27, 2009.

Safety and Compliance
We don't have as much traffic on the ILN ramp as we have in the past, and some of us are starting to get lax about drive lane discipline. If you are driving on the ramp, please remember that our procedures have not changed. Follow our rules for ramp Safety.

If you are working in CVG, please make sure you are following the driving rules there, too. The CVG ramp is congested during the operations, and it is still a new environment to many of us. Slow down and be safe in your operations.

Audits
Earlier this year the Department of Defence conducted an audit of our operations as they do every other year. The Air Force found that ABX Air is qualified to continue operating DOD and Civil Reserve Airlift missions. In summary, we passed the audit.

Passing this audit was never in question, but it was an important test for us, since it was the first outside audit since we restructured the airline. Our organization has gone through tremendous changes during the past year, and there is real value in an independent expert reviewing our operations. The DOD survey is a particularly good test.

As part of their review, seasoned inspectors were sent to ILN for a week. During that time they talked to the FAA professionals who supervise our operations, flew on our flights, and viewed our maintenance operations. ABX did not control who the inspectors talked to or what they reviewed. They had complete access to any flight, simulator session, operational or training function, area, and any employee they felt would give them a good view into how we work. The Air Force team found some things they want us to do differently going forward, but by and large they are very satisfied with how we run our airline today.

In a few weeks, IOSA International Air Transport Association will conduct its audit. IOSA is an optional operational Safety and procedural compliance audit carriers go through every two years. We started the program two years ago as part of our certification to fly in Japan. When a carrier is IOSA-certified, it means we need the same set of Safety and operational requirements as international airlines all around the world. Like our DOD audit, we don't doubt that we will pass the IOSA process again. This will be another outside look at the new airline.

If you are part of our IOSA compliance efforts, thank you for your work in helping us complete our second IOSA inspection. And if you worked on the DOD audit, thank you for making that the success that it was.

Operations
Now we'd like to give you a brief update on operations. Our ABX Air management team continues to work with DHL to explore how we can serve them in their new U.S. strategy. DHL notified ABX that it would not be renewing the existing ACMI agreement when it's initial term expires on August 15, 2010. DHL continues to indicate a commitment to continue discussions to replace the existing agreement with a new one that is not on a cost-plus basis.

We are working with our crewmembers and their union to reach a new, competitive, collective bargaining agreement, so that we can put our best foot forward in our discussions with DHL to secure its business beyond August 2010, and to preserve jobs for our employees. Last week, Joe Muckle (the Teamster Local 1224 president) and Mike Gerdes (ABX Air Vice President of Flight Operations) sent out a joint letter to all crewmembers, agreeing to postpone surpluses and furloughs for 30 days as both sides work diligently to resolve the differences remaining in reaching a new collective bargaining agreement.

On Tuesday, August 18, ABX conducted a pilot information conference call, updating our crewmembers on the current status of the company and the status of negotiations. Members of the ABX Air management team also fielded questions from crewmembers. The next pilot information call is scheduled for Monday, August 31.

Thank you for your time and all that you do for our company. John Graber will be back with an update to the INFOline next Thursday.


John Starkovich's Infoline  |  August 13 and 20, 2009

Good morning, folks. This is John Starkovich, Vice President of Human Resources with the INFOline for August 20, 2009.

Retention Bonuses
On Thursday August 14 and Friday August 15, the long awaited retention bonuses were paid as part of the payroll checks. Based upon the performance that was provided to DHL, it was well earned. We want to again thank you and express our appreciation for all of that you have done to meet and maintain the high level of performance that we have provided to our largest customer.

CVG Update
DHL advises that the CVG operation is progressing and improving. While some challenges remain, they feel that each operation is getting smoother and issues are being resolved. Also, Jan Woolums was selected from a number of excellent candidates to be the Director of CVG station operations.

Interim Operations for DHL
With the end of the Hub Services Agreement on August 15, ABX has entered into an interim agreement with DHL about providing certain services to DHL between now and September 4. The services being provided include temporary staffing for the sort operation and Loadmaster expertise; a number of services here at the airport in ILN; and supplying the Ground services equipment maintenance at CVG and other outbase locations. The interim services are to be provided while we work to conclude agreements with DHL that would cover contracts for these services on a longer term basis. We will keep you advised as those agreements and contracts are successfully concluded.

ATSG Second Quarter Earnings
ATSG announced that it earned $8.1 million for the quarter ended June 30, 2009. Revenues decreased by $159.8 million, or 40% from the previous year due in large part to the reduction in services being provided to DHL and a reduction in reimbursements for fuel expenses. For the first 6 months of 2009, net income increased to $19.2 million from $3.3 million in 2008.

ACMI Agreement Developments
Along with the earnings announcement, ATSG advised that it received notification from DHL regarding the current ACMI agreement. The current ACMI agreement with DHL continues until August 15, 2010. Under the agreement, either company is required to notify the other if it does not intend on renewing the agreement. On August 7, 2009, DHL notified ABX that it would not be renewing the existing acmi agreement when its initial term expires on August 15, 2010. DHL did indicate a commitment to continue discussions to replace the existing agreement with a new one that is not on a cost-plus basis. We are working with the pilots and their union to reach a new competitive collective bargaining agreement so that we can put our best foot forward in discussions with DHL to secure its business beyond August 15, 2010 and to preserve jobs for our employees.

Pilot Negotiations
Negotiations with the pilots continue under the direction of the National Mediation Board, a federal government agency that handles such matter for airlines and railroads under the Railway Labor Act. The next session is scheduled for September 22, 23 and 24 in Washington D.C. With the pilot domiciles at CVG and the opening of a New York domicile along with the Miami domicile, flight ops has changed like so much other things here at ABX. To improve communications with the pilot group as the company negotiates with the pilots union, a website has been set up at www.ABXpilotinfo.com. Please visit the site if you want more information about the negotiations. We have also established Twitter and Facebook sites. On Tuesday, August 18, the first webcast/conference call was held with the flight crewmembers and included ABX President John Graber and other ABX executives as another medium to connect with our pilots at the three domiciles to answer their questions and provide information. The next conference call/webcast is scheduled for Monday August 31, 2009.

That is all for this week. Take care.


Gary Stover's Infoline  |  August 6, 2009

Good morning ladies and gentlemen. This is Gary Stover, Vice President of Air Park Services, with the ABX Air INFOline for August 6, 2009.  

Air Park Services
Over the past 28 years Air Park Services has provided incredible service to the operation, to the air park, and to all of the customers who have moved freight through this facility. This group has worked in all kinds of weather and an ever-changing environment, and has seen the scope of work change year after year. I know many of you have been here years longer than I have, but I am proud of the work you have done and what Air Park Services stands for today.

As many of you know, building on the skills of the Air Park Services department, we have initiated a division of ABX Air called ABX Equipment and Facility Services (AEFS). This division will replace the former Air Park Services department and is still part of ABX Air. It will provide some of the same services we provide today to a variety of customers here at the air park as well as outside of Wilmington.

Concerning the support of the Ground Support Equipment at CVG, we are very close to finalizing a contract to perform these services for DHL. There are still some details that we need to resolve and plan to have the contract finalized very soon. We will be posting the Equipment Maintenance Mechanic positions for both CVG and ILN as soon as the contract is finalized.

We also are working toward a new agreement with DHL to maintain the air park facilities and property after the expiration of the Hub and Line Haul Agreement on August 15. At this point we do not know exactly what this might look like, but as we do, we will share that information with you.

STAR
We exceeded the July STAR goal of 95 percent by achieving an on-time service of 95.8 percent.
Please thank your employees for all of the work they did in making this goal! The payout will be included in August 14 paychecks.

Investor Conference Call
Air Transport Services Group, Inc. will host an investor conference call on Tuesday, August 11, 2009, at 10:00 a.m. Eastern daylight time, to review its financial results for the second quarter and six months ended June 30, 2009.

The Company will release its second quarter and first half 2009 financial results after the close of the market on Monday, August 10, 2009. For more details please visit www.atsginc.com.

Transition Center
Be sure to take advantage of the services available at the Air Park Transition Center, your co-workers are. Since our last sort operation more than 500 employees have signed up for FREE job search and computer skills classes available at the Transition center. When you come to an orientation you will learn about possible State funding available for retraining, unemployment experts are available to answer your questions and the transition center staff are there to assist in any way possible. Call the transition center at 937-366-2665 or stop by for a visit at 3280 SR73 (bldg. 5). You can find out more information online at AirParkTransitionCenter.com.

This is all the news I have for this week. John Graber will update the INFOline next Thursday. Thank you for your continued efforts and support of our company.


John Graber's Infoline  |  July 30, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for July 30, 2009.  

Safety
We have about 200 People working in CVG every night for awhile. That is a new environment for us, with new processes and new procedures. Please make sure you know how things work, and follow DHL’s procedures in operating there. Be Safe in everything you do.  We have ABX Air leadership on site every night to help you with any issues you’re having. Work with them and make sure we’re taking care of you in the new operation.

Compliance
As the new CVG operation starts, there are hundreds of questions about how things work there.  We’re finding communication to be a real struggle. After decades of being able to go out to the ramp and solve a problem, flight and maintenance operations are adjusting to running our DHL hub based network through a telephone connection.

If you find an issue you don’t understand in the new operation, remember, you do not have to guess at anything.  Ask your supervisor for help and information. Work through the issue until you are satisfied you have the right answer.  We are much better off taking a delay and knowing we are compliant, than guessing about something and making a mistake.

Last night we had a crew notice a problem on the paperwork for a Haz shipment. When we checked into it, we found a problem and bumped the freight. That was exactly the right call.  Nice job.

Wilmington’s Last Operation
A week ago tonight we operated our last Wilmington sort. Toward the end of the operation about 400 of us gathered at the end of F Building to watch ABX Air’s last revenue flight – flight 552 – leave Wilmington.  We had sorters, accountants, executives, dispatchers, pilots, mechanics, Air Park folks – I saw someone from almost every work group there for the last departure.  

There was the full spectrum of emotion in the group. Some cheered, some stood quietly – there were tears and hugs, and some even applauded.  Like the last 14 months, that last night was a difficult time.  

But weeks ago Jan Woolums and her Ground Department, and Gary Stover and his Air Park Services department, and Jennifer Miesse and her Employee Relations Department, had decided that at the end of our operations we had something to celebrate as much as we had something to mourn. So they put together a huge carry in the week before our last flight. Hundreds of People came from every department. They had music, they gave away prizes, and they had fun. Then they organized smaller carry ins during our last week, so everyone could gather in their own groups to honor the occasion in their own way. We handed out commemorative t-shirts to mark the last operation.  

I got to attend almost every event, and in those last two weeks I talked to hundreds of you. Like every ABX Air carry in, we ate, told stories, took pictures, and laughed. But this time we were sentimental. This time we watched the Night Moves movie Ground had put together. This time we made sure we got email addresses and phone numbers, and this time we made sure we got to tell our friends how much we appreciated all the years together, and all we’d shared. I don’t have the years here most of you do, and I very much appreciate your bringing me into the fold and sharing your stories.

There is so much wrong when an organization like ours with the amazing people we have goes through what we’ve all gone through.  Many of our friends have serious, life-changing problems to work through as they face the end of one career and the uncertainty of what comes next, making it all the more remarkable how ABX Air’s People rallied together in the last two weeks. We were able to celebrate the things that have made this such a great place to work. I heard it over and over from so many of you – that in spite of all the bad things associated with the end of huge parts of our company, you were celebrating the friendships you made here, the time you had with your coworkers, and the wonderful place ABX Air has been for you.

You are truly an impressive group of People, and you have much to be proud of.

If you have had to leave ABX Air, let me thank you again for all you have done for our company over the years. Make sure you are getting the support you need and everything you have coming to you as you transition away. If you are not, let me know.  

If you are one of our People who are still working here, let me thank you for all you are doing for us every day. You face huge change and difficult times. We are still worked toward building a durable ABX Air. We have a lot of work yet to do, but we have not quit, and we will not quit.  

That is all the news I have for this week.  If you have any questions or comments, or you need any help at all, drop me a note.  My email address is john.graber@abxair.com.


John Graber's Infoline  |  July 23, 2009

Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for July 23, 2009. Tonight’s operation is going to be our last sort in Wilmington. I think everyone knows that now.

Safety
So starting with Safety, be careful tonight. Take care of yourself and your buddies. Make sure you leave our last night of sort operations the way you came to it – healthy. And make sure your co-workers do the same.

Compliance
In the past 14 months our compliance performance has been excellent. Thank you. Keep that up tonight.

CVG Update
DHL indicates they made significant progress week over week in their testing of the CVG hub. We spent time with senior DHL leaders this week. It is clear to me they have a good sense of the challenges they face in CVG, and they have a plan to overcome those challenges. Ken Allen, who took over the global DHL Express operation after running the US for a short time, has put a senior team of strong operational leaders in charge of DHL Express. They know what they need to do to make CVG and DHL’s US product a success, and they are working hard to make that happen.

Those DHL leaders have asked for many of our folks to continue helping with CVG operations through the end of July, and of course we’re happy to provide that support.

Performance
In the 420 operational days since DHL’s May 28th announcement we’ve run 98.5% on time, counting the delays we can control. That is an amazing achievement, but not nearly the whole story. We ran 100% on time Tuesday of this week, and Monday of this week we had 2 mis-sorts out of over 75,000 pieces sorted. Two. Our goal is 48, a goal we have beaten eight days in a row. Those numbers are not unusual – since May of last year, we’ve run 122 days at 99% or better, and 130 days at 100% on time.

DHL Manager, Mark Miller sent us another measure of your service excellence. He said, "I want to congratulate the Reload Teams for maintaining focus on performance through what has been and continues to be a difficult work environment. Your teams never dropped the ball regarding scanning since these audits went into effect." Mark pointed to our Reload areas 1, 2, 3 and 13 that all finished recent audits at 100%.

I cannot overstate the importance of that kind of performance. When you look back on this time in our company’s history, you have much to be proud of. Many have worried our company would go out of business in the past 14 months; you proved them wrong and delivered excellent Customer service through the most difficult of times. Experts said no company could withstand the dramatic restructuring we faced. You not only withstood it, you took it as an opportunity to redefine almost everything we do, creating a leaner, more responsive ABX Air.

Wilmington’s Last Operation
Our flight 552 to JFK tonight is the last operational ABX Air system flight out of Wilmington. Many of you want to see it depart, so we’ve set aside a gathering place outside the Customs area of Building F, where A and F buildings meet. If you want to see our last freighter depart ILN, be there about 5am Friday morning. It will be the end of an era.

With the closure of our sort operations, we’ve told many friends and coworkers their jobs at ABX Air are ending. We sent WARN notices to over 1,000 of our People last week. If you are losing your job, make sure you know what is coming to you, and how to get it. We have provided a lot of separation and pay information in ICOM messages, FYI sheets and material on our website. Read the information. If you have questions, your supervisor is a good place to start, as is the Transition Center.

Direct Deposit
I want to urge everyone to sign up for direct deposit. If you sign up by August 6th, your retention funds will be available to you on payday. If you don’t have direct deposit, it is possible you will have to wait a week before a bank lets you access your money.

That is all the news I have for this week. If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Bob Gray's Infoline  |  July 16, 2009

Hello, this is Vice President of Regulatory Compliance and Government Affairs, Bob Gray for the July 16th, 2009 ABX Air INFOline.

Sunday July 12th was the first operation for DHL back at the CVG hub. Many ABX employees were there in Cincinnati to train, assist, and to provide oversight in effort to support DHL’s decision to leave Wilmington, and return to CVG. DHL regarded this first day as an overall success, although there are still some bugs that need to be worked out of their systems. While it is difficult to be a part of the closing of ILN, it is very important for the future of ABX to see that DHL is successful going forward. Because of that, we appreciate your hard work and support. ABX personnel will continue to support DHL’s start up during the upcoming weeks. For those of you that are involved in that, please pay particular attention to your safety and that of others around you. You are operating in a different environment, on a ramp with many new employees that may not be familiar with all of the safety procedures that you practice as second nature. Take that extra second to look twice, and think carefully about what you are doing before you act. Nothing should change the safe manner in which you perform your job. Your safety remains our top priority.

Payroll is preparing to issue severance checks for those of you that will be leaving us over the next couple of months. Almost 1/2 of our employees do not have direct deposit. Employees who receive live checks may not be able to access their money immediately. Many banks will put a "hold" on these checks until they clear, and sometimes this could take up to 7 business days. In the case of some severance checks, you will find it very difficult to cash your checks if you do not have an established bank account. Places like Kroger's and Wal-Mart will only cash checks written up to a certain dollar amount. We strongly encourage all employees to set up direct deposit into a savings or checking account, which will allow them to have immediate access to their money. For those employees who do have live checks issued, remember to be aware of your surroundings when cashing a large check.

Direct Deposit forms should be submitted to Payroll by July 29. August 6 is the final deadline. Forms are available in the form bin in Payroll or online at MyABX.com.

The mediation process for the pilot union’s collective bargaining agreement continued last week in Washington D.C., with representatives from the Company, the Union, and the International Brotherhood of Teamsters meeting with the Federal Mediator in hopes of coming closer to an agreement. I participate in these talks because I have been involved in the negotiations process for the past 24 years, over four separate Collective Bargaining Agreements. The Company’s goal is to provide ABX with the ability to not only compete in our new ACMI environment, but to also be competitive in maintaining, and possibly even obtaining additional flying for DHL in the future. Unfortunately, we made little progress during this round of negotiations.

The union negotiating committee continues to hold open the contract for items such as changes to the grievance procedure, and protection for pilots who take excessive sick days while on reserve. The two major disagreements appear to relate to pay, and the distribution of the $75 million dollars committed by DHL, to be allocated for severance and other pilot related issues.

Regarding the $75 million issue, the company believes that the pilots should get a severance, similar to the benefit our other employees get, even though severance is not part of the benefit package the Union has negotiated for during collective bargaining, in any of their past contracts. Regardless, President John Graber approached DHL over a year ago about negotiating for money to address the needs of the pilots that would be losing their jobs during the DHL restructuring. Human Resources Vice President John Starkovich negotiated a $75 million dollar package, part of which would go towards severance, and part of which would go towards funding the Pilot’s Pension fund, with the only stipulation being that the parties must agree on the conditions under which the money is released. Since the negotiations with the union for the distribution of that money began, we have seen numerous shifts in positions on the part of the Union negotiating committee. At one time the Union proposed $60,000 severance to each crewmember severed, and $45 Million going towards the pilot’s pension fund. A later union proposal would have called for an average of over $110,000, or 45 weeks of pay be provided to any pilot who was severed, retired, or had already left voluntarily to take another job.

The company has offered the Union a market competitive collective bargaining agreement, along with the same severance package that has been provided to all of the other employees of ABX, with the rest of the $75 million going immediately into the Pilot’s pension fund. This offer has been rejected. We remain in negotiations over this issue, and are hopeful that an agreement can be reached.

The second major issue is pilot pay. Currently, ABX pilots are one of the top three or four highly paid pilots groups in the world. This fact, in addition to the low level of scheduling productivity our current agreement creates, often eliminates ABX as a serious competitor in the ACMI market. Looking forward, our high crew costs will also make us undesirable to DHL in comparison to the other airlines that might operate for them in the future. The Union did agree to certain productivity enhancements which the company asked for, however, they are unwilling to agree to any pay reduction. Current base pay, before any overtime pay, for a 767 Captain is about $187,000; the company is proposing an adjustment to $160,000. While no one at ABX likes cuts, it is necessary to reduce costs so that we can successfully compete in the ACMI market. Today ABX costs remain too high to compete without a reduction in pilot salaries.

The parties meet again with the mediator in September in Washington.

One of the many changes that is taking place at ABX is in Air Park Services. They will continue to maintain the Air Park after the August 15th expiration of the Hub Services Agreement with DHL, although the scope of work will be at a much smaller scale. Building on the expertise of the individuals in that department, we have initiated a division of ABX which will be known as ABX Equipment and Facility Services, or AEFS. Unlike the MRO, this division will still be part of ABX Air, and not a separate company. As such, employees who continue jobs through AEFS will keep their current ABX Air benefits, such as existing vacation and accrual rates, sick time balances, and Company Seniority. Severance and Retention will be treated consistent with all other employees that remain at ABX. Those who remain employees of ABX do not receive Severance, since they are not separating from the Company. Retention Pay will be paid out regardless if you elect to stay or separate from ABX, as explained in prior communications.

Right now, the last scheduled ILN departure for an ABX aircraft will be Friday, July 24th. For many of you, this will represent an ending to a career. While ABX and DHL have worked to ease the financial impact through the retention and severance packages that have been offered, it is still an emotional time for all of you. You have played a large part in the building of one of the finest airlines in the world, and nothing I can say in this recording can really come close to thanking you for your time, effort, and long hours in making that happen.

For those that are left, you face the tasks involved in continuing on. Sometimes it is easy to look at our current situation and feel discouraged, or worry that it might be impossible to succeed, given all the work that has to be done, and with fewer people to do it. For those of you, I suggest you look at our history.

On April 30th, 1985 our scheduled fleet consisted of 14 DC-9s, and 10 YS-11s. Twenty-four total aircraft. Those of you that were around then remember well the feeling of "all the work that has to be done, and not enough people to do it." Yet, somehow, we did. Luckily, many of us that were involved in getting it done in 1985 are still here today… albeit with a little, or in some cases, a lot less hair, and a lot more wrinkles. If you ever wonder if ABX can thrive and grow given the current situation, history has told us that it can. It’s up to all of you to see that it does.

We thank you for your continued efforts during the upcoming weeks, and remember to keep yourselves safe.


John Graber's Infoline  |  July 9, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for July 9, 2009. I hope everyone had a safe 4th of July. I delayed this Infoline by one day so our leadership staff could talk to their People about DHL’s plans going forward. I’ll talk about that in a minute.

Safety & Compliance
I’m going to combine my Safety and Compliance notes this week and ask everyone to pay special attention to our ramp operations. This week we damaged an aircraft with a K loader, and could have easily hurt someone. There were lots of People around when we gouged a guardrail into the side of a jet, but it didn’t matter – we still made the mistake.

This year we’ve made great strides in ramp Safety – but incidents like this one set us back. Keep your head in the game; take care of yourself and your buddies on the ramp. The rules are easy – follow the rules. They’ll keep you Safe.

DHL News
Today I am able to confirm for you DHL’s plans for the end of operations in Wilmington. I’ll cover the information with you at a fairly high level today. Tomorrow we’ll follow this up with more in-depth material and formal handouts you can take home and share with your family.

On Tuesday DHL confirmed their plans for us. They plan for July 23rd to be the last day of sort and flight operations in Wilmington. Aircraft will fly into Wilmington that Thursday night. After more than 28 years, we’ll run our last sort operation, and dispatch the last network flights out of Wilmington.

As you know, DHL is testing their CVG systems on Sunday July 12th, and Sunday, July 19th. If things look good on the 19th, DHL will make the call to move to CVG on the 24th. If things don’t go smoothly, DHL could slide the move a week. If that happens, we’ll continue Wilmington operations until July 30th.

If you work in Ground or Airpark, here is what you need to know: If you have not volunteered for the August retention program, July 23rd is the last day we would ask you to work if DHL’s plans work out. If you are part of the August program, the last day we would have you work is August 28th.

I’ve thrown a lot of dates at you, so let me recap the high points: DHL plans July 23rd to be their last Wilmington operation. If they slide the schedule, they’ll do it a week at a time. The last day we might require a sorter or Airpark technician to work is July 30th or August 28th, depending on whether you signed up for the August retention program.

We will have written guidance about all this out very quickly, and we’ll follow that up with meetings in the next two weeks. We’ll cover pay dates, severance, retention, and transition programs – everything you need to know if you are losing your job.

Hundreds of our people have told me about the exceptional job we’ve done in taking care of the thousands of our friends and coworkers who have had to leave us this past year. We’ll make sure we take the same care of you.

It is worth noting that nothing I’ve just told you is new – we’ve all known this was coming – we just weren’t sure when. Now we know. Now you can plan.

And, I’d suggest, you can reflect for a minute. The end of our operation is truly the end of an era. For over 29 years Midwest, Airborne and ABX Air moved freight out of Wilmington. For over 29 years we’ve built a family here. We’ve built lots of them. We’ve come to know and rely on each other, creating a most remarkable corporate culture. That culture allowed us to build one of the best reliability and customer service records in the world. We have much to be proud of in what we’ve done here.

We’re not through.

In Ground Department Town Hall meetings this week, several people asked me what ABX Air would look like after the sort was gone. We’re going to look very different, obviously, but we are going to be here. ABX Air still has a business. There have been times this past year when many doubted that. There is little doubt anymore.

Remember last year, when we built a new flight plan for our company? Well in spite of all turbulence we’ve faced, we’re executing on that plan. We’ve had to adjust, had to make changes, but we are still tracking to the same destination – we’re still on course to a strong, viable airline. ABX Air is leaner today, but more capable. We move faster than we used to; with a sharper focus. We fly a great platform for charter freight. And once we have competitive costs – especially competitive pilot costs – we will be a formidable presence in the air cargo marketplace.

ETOPS
Last week the FAA approved our ETOPS application. ETOPS is Extended-range Twin-engine Operational Performance Standards. It allows us to fly our 767s farther from land, on shorter routes across an ocean. Without ETOPS on today’s New York to Liege flight, we’d be in the air eight hours. With ETOPS, the flight is six hours and thirty-two minutes. ETOPS is a huge accomplishment, one that makes us more competitive across the north Atlantic. Thanks to all of you who worked so hard to make this new capability a reality.

Rumors
The rumor I heard this week is that DHL might bring their domestic sort operations back to Wilmington in the future. They aren’t going to do that. Most rumors have a kernel of truth in them somewhere – this one breaks that rule. DHL won’t come back here once they move to CVG.

The FedEx rumor is back. There is no warehouse full of purple paint on base, and FedEx has not been here looking around our facility. FedEx has spent millions on their Indianapolis hub, just minutes away from Wilmington by air. There is no reason for them to operate from here.

That is all the news I have for this week. Please make sure you talk to your leaders about DHL schedule information in the next couple of days. Make sure you know what is happening, and how it impacts you.

If you have any questions or comments, or you need any help at all, drop me a note. My email address is john.graber@abxair.com.


Terry Scherz' Infoline  |  July 2, 2009

Good morning, ladies and gentlemen. This is Terry Scherz from Aircraft Maintenance with the ABX INFOline for July 2, 2009.

Safety
I am pleased to announce that recently our own Bob Gray, Vice President of Regulatory Compliance and Governmental Affairs, and the rest of the Commercial Aviation Safety Team--which is made up of a select group of industry experts--were nationally recognized with the prestigious Collier Trophy. This is a very distinguished honor, which recognizes achievement in America regarding improvements in safety and efficiency of commercial airline operations.

Bob will be the first to tell you that safety is a team effort and needs to be our number one priority at ABX Air all the time. Watch out for each other and yourself, and always follow safe workplace practices.

Awards
While I am on awards, ABX Air recently received an Award of Excellence in the Air Carrier category from the readers of Air Cargo World magazine.

We were evaluated on factors such as customer service, performance, value, and information technology. This would not have been possible without the skill and dedication of all of you on the ABX Air team.

ETOPS
Just this week, we received FAA approval of our ETOPS program. During the past several months or more, many of you may have heard someone discussing ETOPS but were not exactly sure what it meant. The acronym ETOPS stands for extended range operations with two-engine airplanes.

Back in the early 1950's, twin-engine aircraft were not nearly as reliable as the modern airlines flown today, and the FAA imposed restrictions on twin-engine airplanes, limiting them to routes within one hour of an adequate airport. As aircraft (especially engines) became more reliable, the FAA rules were revised to allow for specially equipped aircraft flown by operators with enhanced procedures to fly a farther distance from a suitable airport.

This became much more important to ABX Air when we started flying from the U.S. to Europe. Without an approved ETOPS program, we would have to take a much longer route. The significance to being approved by the FAA to fly ETOPS is that ABX Air will be more efficient and competitive flying across the Atlantic Ocean without compromising safety.

During the grueling several-month certification effort we were required to write new, enhanced procedures both in Flight and Aircraft Maintenance that met FAA ETOPS requirements. Flight crews received enhanced training. And then we needed to demonstrate to the FAA that ABX Air had the professionalism and discipline to safely operate the aircraft under ETOPS rules.

A special thanks to all of you directly involved in this important effort. A job well done.

Flight Operations
We continue to meet with our flight crews to successfully negotiate a new contract. Tuesday of next week we are scheduled to be back at the table in Washington, D.C.

DHL Transition
Plans continue for DHL's transition of the hub sorting operation at CVG. The projected completion date remains August 1.

Air Park Transition Center
The Transition Center remains available to all eligible employees. This is an extremely valuable and useful resource that will be of benefit to you. Please, if you have not already, check it out.

Retention
Eligible ABX Air full-time and part-time employees will receive their retention checks on August 14. Your retention payment will be included in your regular paycheck. This check will include your wages for the two weeks from July 24 through August 9. Your retention payment will be included as an additional amount.

For every full month that you were employed in an eligible full-time or part-time position from July 2008 to July 2009, you will receive two weeks of pay. If you have been in an eligible position the whole time, that means 26 weeks of pay. That is a big amount, and there are things you need to know about how the payment is being handled so you know what to expect. Ask your supervisor for information we've prepared about your retention.

ABX is not qualified to provide advice about investments or tax consequences, but we do want to provide you with basic information you need. Look for the information we published covering these basics. [Edit: This information is contained in issue 20 and issue 21 of For Your Information.]

This is all the news I have for this week. I hope the ETOPS explanation didn't bore you. John Graber will update the INFOline next Thursday. Thank you for your continued efforts and support of our company. Have a safe and enjoyable Fourth of July weekend.


John Graber's Infoline  |  June 25, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for June 25, 2009. I hope you are all enjoying our summer weather and staying cool.

Safety
In Safety this week I want to remind everyone to stay hydrated in the hot weather. Some of us will succumb to a heat injury this summer – an ABX Air employee went to the hospital this week in distress. She is all right, but she had an uncomfortable night. You can keep that from happening to you. Take care of yourself by using smart techniques to work in the heat.

Compliance
Most of you know the stickler I am about compliance. I think it is easy to follow the rules, and I know following the rules keeps us Safe, and is the best way to an efficient, consistent product. I watch compliance indicators every day.

One of those indicators to me is the training we’ve been doing on our ramp. Since the 15th, we’ve had DHL folks up from CVG, training them in ramp operations. And we’ve been doing a heck of a job. We’ve provided excellent support, taking good care of those People and our business. I want to echo something Jan Woolums said in last week’s Infoline – it is not only what you do, but how you do it. Our ramp personnel are doing it just right, and I thank you for that.

Excellence
I’m proud to share with you that Air Cargo World magazine awarded ABX Air the Award of Excellence as an Air Carrier. Air Cargo World asked its readers to evaluate airlines and airports on four measures – Customer service, performance, value and information technology. Our airline was given very high marks by our peers, our Customers, and industry experts.

Working day in and day out, it is easy to lose sight of the excellent product we provide the marketplace. It is gratifying to see our hard work recognized by our peers. This award is a direct result of the dedication and hard work of every ABX Air employee, and would be noteworthy in normal times. Winning the award now – with all the changes we’re making in our business – is truly exceptional.

Thank you all for the part you played in this achievement.

ETOPS
As I write this INFOline, we are in the midst of proving runs for ETOPS operations over the north Atlantic. ETOPS stands for Extended-range Twin-engine Operational Performance Standards, and is a special authorization from the FAA that allows two engined airplanes to fly over water more than 60 minutes from an airport.

We’re flying over the north Atlantic almost every day now, and without ETOPS authority, our 767s have to fly longer routes, farther north, to stay within 60 minutes of diversionary airports in Iceland and Greenland. That creates extra flight time, and added expense. Once we can fly under ETOPS, we’ll start flying 120 minutes from those airports, and when we prove we can safely do that, we’ll join most airlines and fly 180 minutes out.

Flying ETOPS means we’ve had to build special flight and maintenance procedures, extra training, and put special equipment on some of our jets. The FAA tells us our application for ETOPS was one of the best they’d ever seen. Thank you to everyone in our Flight and Maintenance departments who worked so hard over the past few months to make this new capability a reality.

AMES
AMES has its first 727 in the barn for a heavy check now, a CCIA aircraft. And the new MRO has contracted for its first 737 – both less than two months into AMES’ life. The 727 and 737 are new fleet types for the business, and are great examples of AMES’ ability to diversify its product base in the extremely competitive MRO marketplace.

Rumors
I heard a rumor from a pilot this week that our flying into Lagos, Nigeria may end in the fall. That is true. Our contract with DHL to fly from Belgium to Lagos only runs into September. While it is possible the flying can be extended, we don’t have a contract past September, but that is not a change, it was the business arrangement from the start.

Contracting for only several months of flying is a common practice in the ACMI cargo marketplace. We will see more flying like this as our ACMI line of flying expands.

That is all the news I have for this week. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Jan Woolum's Infoline  |  June 18, 2009

Good morning everyone, this is Jan Woolums with the ABX Air Infoline for June 18, 2009. I hope everyone is doing well and ready for the summer.

Safety
Now more than ever it is important to make sure you’re working safely. With summer comes additional activities; with our children out of school, graduation parties, or planning a family vacation, in addition we will be faced with several challenges and changes in the upcoming weeks. ABX Air leaders are confident in our ability to maintain the outstanding results recorded in the last few months on safety and compliance. I would like to take this opportunity to recognize Mike Vilvens and the Haz sort team for remaining injury and accident free for one year. This type of accomplishment can only be achieved by paying attention to the detail and truly has to be a team effort.

Compliance
Congratulations to everyone in the ILN operation for their continued dedication to quality. Since 2008 Quality Audit scores have improved from 94.7% to a score of 97.4% at the end of first quarter 2009. These are remarkable improvements at a time of many distractions and uncertainties for the future of our company and employees.

One of the areas that have shown excellent results for three consecutive years is Bruce Cunningham and the Hotline team. They have been 100% compliant in both quality and safety. Excellent Job!

Retention
Let me take a moment to answer some of your questions regarding retention payment. The retention payout for eligible employees is planned for the first pay period in August. The pay will be calculated using the employee’s rate of pay effective on February 23, 2009. It will be two weeks of pay for every month employed since July 2008, up to maximum of 26 weeks pay.

The retention payout will be added to the bi-weekly pay and will be taxed according to the exemptions you have on file. You may want to contact your tax consultant about possible changes to your withholdings or other tax planning issues related to this additional income. If you need to change your tax withholdings or sign up for direct deposit, the forms are on myabx.com and will need to be into payroll by August 6th, 2009. The retention payout is not eligible for 401(k) deductions.

DHL Updates
We have equipment moving to CVG weekly. This is excess equipment and doesn’t impact our ability to run a safe and productive operation here in ILN. The first test operation in CVG is still on track for Sunday, July 12th, with the second test on Sunday July 19th. If all goes as plan, the transition to CVG will occur on Friday, July 24th.

DHL has asked ABX to assist with their transition to CVG by providing ramp and sort employees to support the start up of the CVG operation. Last week we asked for volunteers from the ABX Air ground employees to assist, and have received an overwhelming response. Again thank you for your support.

On Monday night, June 15th ramp crews from DHL started On-The-Job training here in ILN with our ABX Air ramp crews. We also have DHL employees training on forklifts in our Non Con area. This proved to be very successful thanks to Scott Cloud, Chuck Sexton, Steve Green, and our dedicated ramp crews on their well executed plan.

Air Park Transition Center
I would like to remind you to check out the Air Park Transition Center, located in Building 5. To date we have had over 3,300 impacted employees who have taken advantage of the programs offered. Stop in and talk to one of our representatives or give them a call at 937-366-2665.

In Closing
It’s not only what you do but also how you do it. Please, stay focused, stay safe and take care of each other.

That is all the news I have this week, John Graber will be back next Thursday.


John Graber's Infoline  |  June 11, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for June 11, 2009. I hope you are all enjoying our summer weather.

Safety
In Safety this week, I get to congratulate several areas for excellent performance – in May our Letters, Reloads, Primary and Secondary areas in our Ground Department posted no OSHA recordable accidents for the second month in a row. That is simply a great job, and it shows what is possible when we pay attention to Safety and procedure every day. Thank you to everyone who worked so hard to turn in those results. Please keep up the good work.

I want to thank everyone for your compliance in cross-walk Safety. When we closed the Employee Welcome Center several weeks ago, everyone had to start walking across taxiway C. We tightened up our Safety procedures then, and you have all done a nice job of helping us follow the new rules. I very much appreciate it.

Compliance
This week we have auditors from the Air Force visiting us. Lieutenant Colonel Gerry Hinderberger and Master Sergeant Scott Padgett are with us all week. If you see them around the base, please make them feel welcome.

They are here as part of our participation in the Civil Reserve Air Fleet, or CRAF. CRAF is a long-standing program in which the US Department of Defense uses civil carriers to augment military airlift all over the world. To be in CRAF, a carrier has to pass audits every two years. The auditors are looking at our Safety and Compliance practices. They will look at how we plan, control and conduct airline flight and maintenance operations, and report back to Air Force leadership at Scott Air Force base in Illinois.

This is our third visit from Air Force auditors as part of our participation in CRAF.

DHL’s Move
We are working very closely with DHL’s operational leaders to ensure a smooth transition between Wilmington and Cincinnati. The identifier for the Cincinnati airport is CVG. There is much to do between now and the move, planned for sometime in July or August. Jan Woolums and Jim O’Grady are working with key DHL leaders to make sure ABX Air meets its goals in supporting the move.

All large airlines run large hubs miles away from their headquarters, but we haven’t done it on this scale yet. To support CVG, we’re creating an ABX Air CVG Operations leadership team. Our Director of CVG Operations, a new role for us, will run the ABX Air show in Cincinnati. Supporting the director, we’ll have flight operations, maintenance operations, Safety and audit functions, as well as administrative support.

As part of the CVG move, we are obviously making changes in our flight and maintenance operations. We will move all our domestic DHL flight operations to CVG this summer, opening a flight crew domicile there. And we’re transitioning maintenance line operations from ABX Air in Wilmington to AMES in CVG. These kinds of changes create many issues for the People involved. We’re working hard with DHL to smooth out as many of the issues as we can.

New Crew Base
We are also opening a new flight crew domicile at the Kennedy Airport in New York City. The base will primarily support our international charter flying. Flight Operations announced the new JFK base and our new CVG base in a letter to crewmembers yesterday. With the eventual closure of Wilmington, we would have three crew bases – MIA, JFK and CVG.

DHL Jobs
Some of our folks have applied for jobs with DHL. If DHL hires you to work for them, we will do everything we can to support a smooth transition between ABX Air and DHL. Some of you received letters from DHL recently, and you have questions about how a transition would work. Please talk to your supervisors or our HR organization, and we’ll work through the issues with you one on one.

ATSG Stock Regains Compliance with NASDAQ Rules
Last week the NASDAQ stock exchange informed ATSG, our parent company, that ATSG’s stock again complies with a stock exchange rule to be above a dollar a share.

You may remember last September, when the price of a share of ATSG stock fell below a dollar. When it stayed below a dollar for thirty days, the stock failed to comply with a stock exchange rule, and after a period of time, might have been de-listed. Many big investors, like financial institutions, will not buy stock in companies for less than a dollar a share.

In the last two months ATSG stock has increased in value. Yesterday the stock closed at over two-dollars a share.

AMES
On June 4th, AMES, the new ATSG MRO, had been open for a month. AMES is doing a great job of working for ABX Air, and I want to take this opportunity to thank our AMES partners for all they are doing for our airline. In its first month, AMES kicked out its first heavy check – the first 757 heavy check ever performed in Wilmington.

There are bumps in the road as we grow and mature with our new maintenance provider, but if the first month is any indication of what AMES will do, there is much to be proud of in the new company.

That is all the news I have for this week. Thank you all for all you are doing for our Company. Please help us continue the good work we’re doing in Safety and Compliance.

Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Jennifer Miesse's Infoline  |  June 4, 2009

Hello, this is Jennifer Miesse from Human Resources with the ABX Air INFOline for June 4, 2009.

Safety
Temperatures are rising throughout the US as summer quickly approaches. Please be sure to keep hydrated and watch out for heat exhaustion.

I have been asked to remind everyone who must cross taxiway C in ILN to continue to be alert and cautious while crossing the taxiway. Remember to stay in the walkways and follow the lighted “walk” and “don’t walk” signs. We cannot afford to become complacent to these safety precautions.

Compliance
Moving on to Compliance, I want to congratulate Scott Grooms and his ramp team from the Ground department for another 100% score on their 2nd quarter quality audit. We have had several 100% scores, but very few back to back, repeated 100% scores. Congratulations and excellent job!

People
We have several great “People” stories to report this week. Last Friday, we recognized several ABX Air employees for their extraordinary efforts in establishing the Airpark Transition Center. It was amazing to see how employees from several different departments pulled together to get the Transition Center up and running successfully. Congratulations to all who received a letter of recognition and to Debbie Loveless, Mary Ellen Diersing, and Eric Salyers for receiving the silver Wings of Excellence for their excellent leadership of the Transition Center team.

I would also like to congratulate Phil Flowers, Diane Hibbett, Jeff Smart and Jim Hobart on receiving their Bachelor’s degrees from Embry Riddle Aeronautical University. All four took classes while continuing to work full-time at ABX. And all four graduated summa cum laude with a GPA greater than 3.9. That is quite an accomplishment and something they should all be very proud of!

As John discussed in last week’s infoline, it has been one incredibly difficult year for ABX and our People. Our EAP counselors are reporting that many of our employees are struggling with clinical depression. Lingering stress and sadness can affect every aspect of life including the way we eat, sleep, work, and interact with others. Depression is not a sign of weakness and it is no one’s fault.

Some of the common signs of depression are:

  • Constant feelings of sadness, hopelessness, or emptiness

  • Loss of interest in activities once enjoyed

  • Feelings of worthlessness or guilt

  • Trouble remembering, concentrating or making decisions

  • Fatigue or loss of energy

  • Weight gain or loss that is not on purpose

  • Worry, apprehension, restlessness, or agitation

  • Irritability, impatience, or frustration

  • Thoughts of death or suicide

There is effective treatment for depression. Please help us make sure everyone gets the help they need. Talk to your coworkers if you think they are in trouble, remind them they can arrange a private, confidential consultation with a professional counselor at the ABX Air Healthcare Center or they can call 1-800-888-2998 for a referral to a local counselor.

DHL Transition Update
Lastly, I would like to give a quick update on DHL’s transition to CVG. As previously communicated, DHL plans to run their first test operation in CVG on Sunday, July 12th, and their second test operation on Sunday, July 19th. If everything goes well, DHL plans to start their full operation in CVG on Friday, July 24th.

DHL has asked for sort and ramp assistance in CVG during their test operations and possibly through August. Additional information will be provided to all sort and ramp Ground employees starting Friday night.

That is all the news that I have for this week. John Graber will be back on next week’s Infoline. Thanks and take care of yourself and those around you!


John Graber's Infoline  |  May 28, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for May 28, 2009.

As I record our INFOline today, I am of course struck by the date--one year ago today DHL announced its plans to move away from us. Twelve months ago.

You all know the myriad issues we’ve worked our way through this past year. Frankly, it is hard for me to fathom all that we have done. This has been a sobering time of wrenching change, but the fact is the People of ABX Air have much to be proud of. Looking back at the year behind us, it would be easy to dwell on what we used to be. I think it is better to look at what we’ve done. When I look back, it is with a great deal of pride in how our ABX Air team has played the hand we were dealt.

Two things come to mind when I think about what our team has done in the last year; first is that we have been successful, and second that we have taken good care of our People, our Customers and our business. Have we made mistakes? Sure. Are there things I wish we could take back? You bet.

But in the past year we’ve done amazing things. Important to me is that we’ve improved the Safety of our operation. We’ve reduced the frequency of our OSHA reportable incidents 33 percent--a third-–in the last year. If you go back four years for this measure, we are a full 52 percent better than we used to be-–that means we’ve cut our OSHA reportable events more than half. And in lost time injuries, we’re 42 percent better than we were a year ago.

We’ve run 99 percent on time for 363 operational days since May 28 of last year. That 99 percent number is for DHL service, and the factors we can control. But if we look at all delays and all P1 arrivals-–we’re running 95 percent on time. In our quality efforts, we’ve had over 12 perfect 100 percent scores on monthly or quarterly quality audits since last May.

The significance of these performance figures is that we put them on the board while we were closing huge chunks of our business, parking an entire fleet, and making dramatic changes in our operational and support structures. The significance of this performance is that, in the face of bad news and enormous change, we have taken care of our business and we have taken care of each other.

In the last year we’ve faced unprecedented challenges to our business. We are meeting the challenges we face. We’ve accelerated our business cycle and our decision cycle. We’re learning to move with an efficiency, speed, and agility we did not have 12 months ago. We are smaller, but we are faster. We continue to adjust to the new reality around us. We’ve redesigned our businesses; we are advancing the plan we built last June. We are diversifying and growing AEFS. We have spun off AMES, and our service delights our Customers.

I’m not trying to minimize the challenges in front of us. We are flying freight through the worst economic downturn in a generation. We face the same margin pressure our competitors do. We have a pilot cost structure that doesn’t work, and neither side in our pilot negotiations is satisfied with our progress. And we have eliminated thousands of jobs, putting friends and neighbors on the street, and damaging our corporate climate and community.

In the grind of day-to-day work, it is often hard to know what things look like in the big picture. What I can tell you today, 12 months after many wrote us off for dead, is that not only is ABX Air alive and well, we are growing our business again. We are getting stronger, and we have a future.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Tammy Voss' Infoline  |  May 21, 2009

Hello, this is Tammy Voss with the ABX Air INFOline for May 21, 2009.

Safety
Now more than ever it is important that we focus on Safety. Each day we are challenged by the flurry of activity and, for many of us, new job responsibilities. We cannot allow these challenges to distract us. We must continue to make Safety a priority.

Compliance
For the past six months, Greg Gear's ramp group has achieved 100 percent on their quality audits. These are fantastic results, and we appreciate the attention to detail and the hard work it took to achieve them. Congratulations!

Please Note
On Tuesday, May 26, the Wilmington Police Department will be on site at the air park for a training exercise from 11:30 a.m. to 1 p.m. The training exercise will occur inside D Building around the D17 area. Employees should remain away from the area until the exercise is completed. The exercise will include the use of authentic-looking weapons that fire non-lethal pellets, so do not be alarmed if you see them in the area.

Air Park Transition Center
Fidelity Investments workshops will be held on Friday, May 29 at 9 a.m. and 11 a.m. in Building 2 in Wilmington. Please contact the Air Park Transition Center at (937) 366-2004 to sign up. The workshop, Deciding What to Do With Your Retirement Plan Assets, is provided at no charge as part of the Air Park Transition Center. Spouses are welcome and encouraged to attend. Please let us know if there will be two people attending when you sign up.

DHL Update
We'd like to update you on the status of the DHL operations. Our ABX management team continues to work with DHL to explore how we can serve them in their new US strategy. On Sunday, May 18, we began operating the DHL 767 Brussels, Belgium to Lagos, Nigeria flight. Terry Wilkin (ABX Loss Prevention), John Vestal (System Chief Pilot), and Steve 'Bubba' Page (Line Pilot), conducted an on-site security review in Nigeria in preparation for the new operation. We would like to thank everyone who have worked so hard to make this operation a success.

As previously discussed, DHL plans to begin operations at CVG on July 24. In preparation, DHL began training its new employees at Wilmington on May 18. ABX is currently operating two buses from CVG to ILN each night. ABX and DHL have relocated approximately 349 pieces of ground support equipment to CVG.

DHL continues to focus on filling over 800 positions. Interviews will be conducted at CVG through June 23. Positions being filled are international service agents, part-time package handlers, and full-time ramp positions. Benefits include medical, vision, dental, life insurance, 401(k), pension, short- and long-term disability, paid time off, tuition assistance and employee discounts.

As always, our ABX leadership is focused on minimizing the impact and hardships to all ABX employees. We thank you for your time and all that you do for our company.

John Graber will be back with an update to the INFOline next Thursday.


John Graber's Infoline  |  May 14, 2009

Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for May 14, 2009.

Safety
Starting with Safety this morning, I am proud to congratulate several areas for excellent performance. Our Primary, Secondary, Letters, Reloads and Transportation areas all reported no lost time incidents in April. Thank you to everyone who worked so hard to turn in that kind of performance, and take such good care of each other.

It is important to remember that when we talk about lost time, we’re talking about hurting our People-–and when we go a month without someone getting hurt at work, that really is something to be proud of. Let’s make it two months.

We are pushing everyone to abide by the crosswalks on our taxiway. For years now many of you have walked across our ramps wherever you wanted. I need you to change your ways and stay in the crosswalks. We have new airlines operating here now–-and with new airlines come new crewmembers. That raises the chance that a pilot won’t see someone on the ground. Keeping to the crosswalks will keep you Safe.

Compliance
I am happy to report that A and F reloads, and our Autosort Primary and Secondary areas turned in perfect 100 percent scores on their second quarter Quality Audits. What great work that is. Thank you.

As I talk about compliance, I do have to tell you that I am still not satisfied with our performance on our ILN ramp. I still see people driving too fast, and moving out of drive lanes when they don’t have to. Slow down, and drive your vehicles in the lanes. Our procedures are there for a reason--compliance is not optional. When you drive one of our vehicles on our ramp, you follow our procedures.

DHL Update
DHL is moving its hub operation from Wilmington to Cincinnati. We’ve known that for a few weeks now, and received official notification from DHL this week.

Today we briefed the ABX Air leadership team on the transition schedule as we understand it. Your managers will cover everything with you in the next day or so, but I’ll hit some of the high points here.

Keep in mind that we’re over 60 days away from the move, so things can change a lot. We’ll tell you those changes as we know them.

To start with, DHL is interviewing in Cincinnati until June 23. Ask your manager for the specific schedule. DHL has recruited in Wilmington twice. If you missed one of those events, your best bet now is to interview in Cincinnati.

DHL has hired some number of new employees in CVG, and is going to start training them here in Wilmington starting Monday, May 18. When you see these new people, treat them well. Remember, none of these new people have anything to do with DHL leaving us. They’re just trying to work for a living. You need to treat them the way you would want to be treated if you were in their shoes. The fact of the matter is that we want DHL to succeed in its business, and for DHL to succeed, these new people have to succeed. Help them do that.

At some point in July, DHL will move its Sunday operations to CVG as a way to practice and test the new sort. They’ll need some of our People to work down there on a couple of Sundays. We’ll ask for volunteers, and pay them for the bus ride down and the time they work. This schedule means we won’t work on some Sundays in Wilmington. That has an impact on lots of things in our operation. Look to your leaders for more information.

We’ve asked People to commit to being available to work in August. DHL will pay our People who commit to being here in August four weeks retention, whether they work or not. If you want that retention, sign up before the 15th, and be available to work in August. We are still working through lots of details about how this will work and we’ll get specific information to you as soon as we know it.

Appel Meeting
Joe Hete and I met with Deutsche Post DHL’s CEO, Frank Appel, and DHL’s CEO, Ken Allen, this week. We had a wide-ranging discussion. We spent time making sure Frank understood how much good work ABX Air has done for DHL, and that ABX Air stands ready to work with DHL today and in the future. DHL has yet to share its long-term plans with us. Obviously we want to be a part of those plans if we can.

AMES Progress
Our sister company, Airborne Maintenance and Engineering Services, opened May 4 on schedule. ABX Air transferred our FAR § 145 certificate to AMES. Hitting a start date on the money is a huge accomplishment. When you see someone who was involved in standing up AMES, thank them for their hard work.

Less than two weeks in business, and AMES is on pace to deliver its first heavy check aircraft next week--ahead of schedule. A company’s first delivery is always significant, and this one especially so because AMES’ first aircraft is a 757--the first 75 heavy check ever in Wilmington. That will make it a lot easier for AMES to get a second one.

Rumors
I don’t have any rumors to talk about this week, and that is all the news I have today. Tammy Voss will update the INFOline next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Mike Gerdes' Infoline  |  May 7, 2009

This is Mike Gerdes, Vice President of Flight Operations, with the ABX Air INFOline for May 7, 2009.

Safety
Congratulations for some outstanding results from Scott Cloud's ramp folks. They have been at a score 100 percent since the start of the year. That’s all of the first quarter and the second quarter to date. Thanks to all of you for your efforts and well done.

This week, the Safety Department ran a drill of our Emergency Response Program. In this drill, a mock accident was developed and, without any advanced notice, the emergency response plan was activated. This is done to test our system to ensure the required personnel are notified and our response plan is put in place quickly and efficiently. This plan generally is used for an aircraft incident or accident. The reports from the drill were very good. There are always a few areas for improvement, so we are all working on revising our procedures as required.

Flight Operations had a meeting with the Pilots Union Safety Committee two weeks ago. It was an informative meeting, and we all learned something. One item really hit home with me that applies to everyone. If you see a safety problem, please report it. Use any means available, but don’t assume it will be taken care of or that someone else will report it. Take the time and report the situation or issue. If it is not fixed, report it again. We take all issues seriously, but we need your help to identify the problems and to make sure the solutions put in place are working. I’d like to thank the Union Committee for meeting with us, and their commitment to meet with us on a regular basis to make sure all safety related items are addressed in a timely manner.

DHL
As announced a few weeks ago, DHL intends to move their operation from ILN to CVG in July or August 2009. ABX Air will remain responsible for continuing our operation until their transition is complete. To ensure adequate staffing throughout their transition, DHL has agreed to an August Retention Plan for ABX Air employees. The August retention will be available to all ABX Air employees who are eligible for the current retention program provided you commit to work and be available to work through the month of August. If you commit now to work (and work if needed) for the month of August, you will receive an additional four (4) weeks of retention pay. To participate, complete an August Retention Commitment Form and give it to your manager by Friday, May 15, 2009. Managers will be distributing these forms this week.

We have been meeting with DHL management to establish a Cincinnati transition plan. These plans include the transition flight schedule, facilities ABX Air requires, and services to be provided. No firm dates have been established at this point, except that DHL intends to make the transition in July or August as previously announced.

DHL has conducted two sessions of walk-in interviews for ABX employees who were interested in working at their CVG hub. We had 71 employees show interest in the positions as sort/ramp employees. We will work one-on-one with the employees that are offered the position on a release date. Interviews continue for ground/ramp employees in Cincinnati on Tuesdays.

The Employee Welcome Center (EWC) closed permanently on May 5. All employees who previously utilized the EWC to access the base now have been assigned to one of three security gates near the Administration building. Access to the base through gates not assigned to an individual is not permitted. The points of access for employees are the 1005 gate, Administration Gate 2 and 3. Parking is available near those locations.

Once on base, many employees must cross taxiway C. Use extreme caution and follow the lighted walk and don’t walk signs located by the approved walkways. Never cross when the “don’t walk” sign is illuminated. Cross only when the “walk” sign is illuminated. Be alert and cautious as aircraft do not have good visibility directly in front of the aircraft and the pilots will not see pedestrians crossing in front of them. Always look both ways and take personal responsibility for your safety. Additional information is available on the employee web site.

On Monday, May 18th, DHL employees from Cincinnati will begin ramp and ground training here at the Wilmington Gateway. This training will help ensure a smooth transition for our customer. If you have any questions on this program, please contact your supervisor.

Flight Operations
In Flight Operations news, members of the Union and Company negotiating teams meet in the National Mediation Board offices this week in Washington, DC. We are scheduled to meet again next week as well. We continue to discuss articles in the Collective Bargaining Agreement as well as Severance/Retirement issues and are hoping to make progress during these talks in Washington.

On May 16, we begin a new charter route for DHL from Brussels, Belgium to Lagos, Nigeria. This flight operates round trips, covering six days per week. We are excited about this new opportunity, and we intend to demonstrate to DHL our ability to operate for them in the worldwide environment. We are working with local security companies to provide secure transportation and lodging for our crews in Lagos, and we appreciate the insights and suggestions our crewmembers and the Union have provided. We will ensure our employees are safe, both in terms of the flight operations and while on the ground.

Finally, to all the moms out there, Happy Mother’s Day. For everyone else, don’t forget to recognize your mom on her special day.

That is all for this week. Be safe, take care of each other, and thanks for calling.


Todd France's Infoline  |  April 30, 2009

Good morning ladies and gentlemen. This is Todd France, Senior Director of Ground Operations with the ABX Air INFOline for April 30, 2009.

Safety
This past week many areas celebrated perfect first quarter results with no safety incidents within their work areas. I’d like to again say congratulations to those areas for their commitment to a safe work environment. Great job!

Recently, a concern was voiced on the wrong type of stairs being placed for the flight crews to utilize at our freighter aircraft. Mike Gerdes, Vice President of Flight Operations, wanted to thank the Ground Department for responding in a timely manner to these concerns brought by the Flight Department. Mike also indicated that aircraft stairs are also being looked at other locations, not just here in ILN.

As you’re aware, we continue to increase the number of employees that are utilizing the Admin 2 and 1005 entry gates to gain access to the base. As a result, we have more employees walking across the ramp to get to their assigned work areas. I’d like to take a moment to ensure everyone is aware of some of the policies and regulations when crossing the ramp:

  • Employees cannot cross the blue AOA lines onto the ramp without an AOA badge and reflective gear (when applicable). Employees must walk across the C taxiline within the cross walk, which is in between the blue AOA lines.

  • Also please pay close attention to the WALK/DO NOT WALK sign at the beginning of the ramp. When the DO NOT WALK sign lights up, employees or vehicles cannot move across the C taxi lane, until replaced with the WALK indicator. If the DO NOT WALK sign comes on while walking across the taxi way, the employee should NOT panic, but simply increase the speed to move safely across the taxiway or toward the closest safe point. As with walking across the street, be sure to check traffic flow from both directions prior to moving across the C taxi lane.

  • Last but not least, when exiting buildings on the base, employees should following the length of the building, keeping inside the blue AOA line, and not cut diagonally across the B ramp to reach the cross walk.

Compliance
I’d like to congratulate the reload sort areas within the Ground Department who scored a perfect 100 percent on their second quarter quality audit. Great job. Keep up the good work. As I told Regina, you’re truly making a difference!

People
DHL will hold recruiting sessions here in Wilmington for ABX Air employees who would like to work for DHL once they move their operation to CVG, which is targeted for the end of the summer. Interviews will be held the evenings of Thursday, April 30 and Monday, May 4 at the Air Park Transition Center in Building 5. The events begin at 6 p.m. and last two hours. Each session is limited to the first 80 applicants. Based on turnout at these two sessions, we will work with DHL to hold more recruiting sessions here in Wilmington if required.

Third shift positions being filled are International Service Agents, part-time package handlers and full-time ramp positions. Benefits include medical, vision, dental, Life Insurance, 401k, pension, short and long term disability, paid time off, tuition assistance, and employee discounts.

ABX Air Reorganization
As you’re aware, the new MRO, AMES, is on track and opening up this Monday, May 4. Unfortunately, there are a large number of ABX employees who will have their last days of service with ABX over the next couple of days. To those employees that are leaving us we thank you for all your years of service and wish you the best of luck in your future endeavors.

DHL’s Plans for the Future
We continue to work with DHL leaders to understand their plans for the CVG transition. Look forward to updates and answers to your questions regarding the transition coming in the near future.

That is all the news I have for this week. We’ll update the INFOnfoline again next Thursday.

Thank you all for all you are doing for our Company. Feel free to drop John a note with any questions or comments you have. His email address is John.Graber@abxair.com

Be safe and take care.


John Starkovich's Infoline  |  April 23, 2009

Good afternoon folks. This is John Starkovich, Vice President of Human Resources with the ABX Air INFOline for April 23, 2009.

Safety

Would like to start off with safety because it is important and because some recognition is in order for certain groups.

First, congratulations to the Haz employees working in the Ground Department. We want to congratulate you for no recordables for 3 months. Thank you for the great effort.

Similar congratulations to the folks in Base Shops. They hit 270 accident-free days. That’s 3 quarters with no accidents, which is simply fantastic. Many thanks for a great effort.

The last item of Safety is to remind folks to drive carefully and safely on the ramp. With everything that is going on here at ABX, understandably we often find ourselves pre-occupied and not paying as much attention as we should when it comes to practicing good driving etiquette and safety on the airport so we must make the effort to do so.

Safety is serious. We want everyone to go home every day without an injury and we need you to make that happen by looking out for yourself and your fellow employees.

New Business

Good news about some new flying that ABX will be doing for DHL across the Atlantic. We are going to be flying from Brussels, Belgium to Lagos, Nigeria. It is scheduled to start up on May 15 and is a four month arrangement. There are many details yet to be worked out. We are happy to have the business and the opportunity to preserve jobs for our pilots.

In past INFOlines we have talked about the closing of the Employee Welcome Center. Toward that end, the motor pool has been relocated to the area between buildings C & D. There is currently an issue with having the badge security system operable at one of the gate locations which is being worked by DHL. May 4 is the goal.

AMES, the new MRO, is in full hiring mode. They have filled approximately 214 positions so far. We also want to take the opportunity to welcome Daniel Boggs who is the Director of Heavy Maintenance and comes to AMES from AAR.

DHL’s CVG Facility

We have been advised by DHL that they are putting out ads and starting the hiring process for the positions in CVG. The current sessions are scheduled for every Tuesday beginning April 21 through June 23, 2009, with no session on May 26. There are two time periods on each day with one from noon to 3 p.m. and a second from 5:30 to 8:30 p.m. Each session is limited to the first 100 participants. Interviews and drug screens will be done. You will need a driver's license or other state picture ID as well as to provide 10 years of work and home address history. If you do not bring these items with you, then you will not be allowed to participate. The sessions are at the Cincinnati Airport Marriott, 2395 Progress Drive, Hebron, KY 41048. We will request DHL to do an interview session here at ILN and will keep you advised.

That is all for today’s info line. Many thanks for the great job that you continue to do for ABX. Take care.


John Graber's Infoline  |  April 16, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for April 16th, 2009.

Safety
In the last 30 days we have had two accidents on our Wilmington ramp. In the first, a tug and an aircraft fuel truck collided. In the second, a van hit an aircraft fuel truck. In both cases vehicles moved in front of the fuel trucks, causing the accidents. No one was hurt in either event, but that was just dumb luck.

I’ve asked our Safety organization to review the accidents and define the root causes, and make sure we tell everyone what happened and why, but in the meantime, I’ll tell you how to prevent ramp accidents – follow our procedures. Be careful. Respect the ramp environment when you’re out there.

There is a very real difference between doing things quickly and rushing. When you work with a deliberate purpose, when you operate as quickly as conditions allow you to work Safely, you’re doing your job. When you’re rushing, not paying attention, and violating our procedures, you let everyone down. All of us need to pay attention on the ramp.

I’ve asked our Safety and Security organizations to help me reinforce Safe and standard ramp driving practices. If someone stops you on the ramp, they’re doing what I’ve told them to do. Listen to what they have to say. They’re trying to keep you Safe.

In better Safety news, Safety Coordinator John Kindrick reports that our Haz Sort organization did not have an OSHA recordable accident for the entire first quarter. That is simply outstanding. Great work. This is our fourth organization to end the quarter with this kind of performance. Thank you to everyone in Haz Sort for your hard work and professionalism. Safety isn’t easy, and I very much appreciate your dedication to the cause.

Operations
I have more perfect operational performance to report this week. Our Transportation organization under Dean Beckett and our Ramp organization under Greg Gear both scored a perfect 100% in their first quarter quality audits. Thank those folks and their organizations for their hard work and dedication. What a great job.

ABX Air Reorganization
By the end of this week we will have finished communicating ABX Air’s restructuring plans. Most of those plans take affect May 4. You may remember, these are the organizational changes we announced during our Hangar Talks in March. We said then that we needed to lower our costs and increase the efficiency of our airline-related business. That’s what we’re implementing now.

If you work in Flight Operations, Maintenance and Engineering, Purchasing, IT, Safety, Finance or Accounting, you should know what your part of our business looks like going forward. If you don’t, talk to your department head and they’ll give you the information you need. We want you to have all the information we can give you about your future here, and we want you to have it as soon as possible.

All of these changes create stress in everyone, and we all handle that stress in different ways. If you need help, we want to provide it. Our Employee Assistance Counselor is available twenty-four hours a day at (800) 888-2998, and Dr. Richard Mague, a counselor, is here today and tomorrow. You can get in touch with him in the large break room in building 1005, from eight to four both days.

Help us take care of you and our coworkers.

Wilmington Changes
We are still working on how to reduce our Wilmington footprint. We’ve moved the motor pool, and are in the process of moving out of the Employee Welcome Center. That transition will be complete this month.

For our office workers, we are still evaluating where we will consolidate our offices. The administration building and building two are the main candidates. We will start moving sometime in May.

Global Freight Reports
You know that we have stopped flying in Asia, and closed our Osaka, Japan base. Japan Airlines recently reported its February international cargo volume – they reported it down 39% year over year. That kind of decline highlights why our Customer, All Nippon, stopped flying us in Asia.

Retention Money Deferrals
One of our folks asked me if we can defer part of his retention payment until next year so he won’t have to pay income taxes on the entire amount this year. I checked with our tax expert, and we cannot do that. The IRS has a rule that says income becomes taxable on the earliest date the employee has a right to it. I very much appreciate the idea, and welcome yours, but we can’t make this one work.

Rumors
I need you to pay special attention to this rumor this week.

The rumor is that ABX Air’s profit sharing plan is out of money. This comes from one of our folks who is looking for places to roll over his 401k plan. He said a local financial person told him that ABX has borrowed all the money in our profit sharing plan and has no way to pay it back.

That is not true – and it is not true on every level. First, the ABX Air profit sharing plan is sound. Second, ABX Air has not, and cannot, borrow those funds. The Bank of New York/Mellon maintains ABX Air’s profit sharing funds in a trust. Your profit sharing funds are intact.

I am very worried that some unscrupulous person is trying to take advantage of you by spreading this kind of inaccurate information, trying to make you move your money somewhere you should not. Please be very careful. Work with people you know, and people you trust.

That is all the news I have today. We’ll update the INFOline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Debbie Loveless' Infoline  |  April 9, 2009

Good afternoon, ladies and gentlemen. This is Debbie Loveless with the ABX Air INFOline for April 9, 2009.

Safety
First let me talk about Safety. The varying weather conditions remind us all that spring is here and with that comes the potential for severe weather. As you move from one work area to another, please take a few minutes to familiarize yourself with your surroundings and the nearest tornado or lightning safe location. This will allow you to move quickly to a safe location should a warning or evacuation be directed.

With warmer weather, more people are out and about in your neighborhoods. Please be alert to pedestrians enjoying the outside and keep an eye out for children playing.

For those of you who use US Route 68 traveling south of Wilmington, please be aware that it will be closed at the State Route 350 Bridge beginning on April 24. A detour will be in place for approximately 120 days.

ABX Air Reorganization
Last week, department leadership met with their folks and provided more clarity about what the ongoing organization structures will look like. This week we are working hard to make sure everyone knows how those structural changes affect them directly. If you don’t have that information or have questions about the information you do have, please see your department leadership. While we expect to implement the bulk of our organizational changes early in May, we know it will not be a perfect science and some changes may take more transition time than others. Please work closely with your management regarding your particular position.

For those who will be leaving ABX, please be sure to visit AirparkTransitionCenter.com to learn about the support available to you as you explore other career options. The Transition Center site has a job board with many job opportunities worth considering. There is also information about the Military and Civil Service Career Fair being held in Dayton on April 15. Additionally, the positions available at Airborne Maintenance and Engineering Services are listed at Airbornemx.com. Please check these sites out and visit the Transition Center to learn about other opportunities.

For employees hired before January 1999, be on the look out for your profit sharing statements, which will be mailed next week. As a reminder, profit sharing is a part of the overall ABX retirement program.

Finally, I ask that you please consider supporting the American Red Cross Heroes Campaign. ABX Air and DHL have teamed up to help the Red Cross continue its valuable mission by holding a benefit raffle and by sponsoring casual dress days. Tickets for the drawing or for the next casual day on April 30 can be purchased from various volunteers across the base. Please see myabx.com or the nearest Communication Center for the list of volunteers with tickets in your area.

That is all the news I have today. We’ll update the Info line again next Thursday. Have a safe Easter weekend and take care of each other in the meantime. Thank you for all that you are doing for our Company.


John Graber's Infoline  |  April 2, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for April 2, 2009.

Safety

In Safety, I am very proud to compliment our Reload and Autosort folks for their outstanding first quarter performance. They worked the entire quarter without an accident, turning in a perfect record. Manager Regina Vandervort wanted to make sure we congratulated her folks, and it is my pleasure to do that.

I have worried about our Ground Operations statistics, but our incidents are down by a third, year-over-year, and performance like this really helps.

Safe operations are a challenge in our work. It takes attention to detail and care, day in and day out. And we are making significant gains in our Safety performance. Reggie thanked her People and her leaders for taking care of their People. That is exactly the right sentiment. I could not have said it better.

Operational Performance

We missed our STAR goal for March – 95% - by less than a half a percentage point. We face a challenging schedule with all the multiple stops in our system as we cover the nation with fewer assets, but it is a schedule we can hit. Help us do it every day.

ABX Air Reorganization

We are well down the path towards defining what ABX Air will look like going forward. By the end of this week most of our Departments will have completed their departmental meetings to tell their folks what to expect those organizations to look like. As I said in our Hangar Talks in early March, we are lowering our airline costs and our airline structure to make us more competitive in the ACMI marketplace.

Our reorganization will affect every department differently, depending on the needs of our business. Our Flight and Maintenance & Engineering departments will see the largest cuts in pay. Our support departments will have fewer pay cuts and they are being asked do more with less staff. We expect to implement the bulk of our organizational changes early in May, and we are working hard to make sure everyone impacted knows the changes in their areas by the end of next week. If you have any questions about what this all means to you, ask your departmental leaders. We want to answer your questions as quickly as possible.

DHL’s Plans for the Future

We met on March 13th with senior DHL Express leaders for the first time to discuss their plans for the future. In a two hour meeting, Joe Hete, Joe Payne and I met with Ken Allen, Ian Clough and two other senior DHL US leaders. We had wide-ranging discussions covering a host of issues.

DHL indicated they don’t yet know what they are going to look like going forward. We have agreed to work closely with them to lower their costs in Wilmington, but don’t as yet know what their plans are for staying here or moving their operations to Cincinnati. Our next meeting is scheduled for late this month. As we know more, I’ll pass it on.

Wilmington Changes

As we get smaller at ABX Air, we’re making changes on base. You’ll see several things happen over the next few weeks. First, we’re going to close the Employee Welcome Center. If you park there now and ride the buses to work, look for us to move you down to the parking lots near the Admin building and our hangars. You’ll soon be able to walk directly to the sort, entering the ramp from a couple of gates. We’ll have complete information out soon.

We are also going to consolidate our physical footprint on base. We are evaluating several alternatives, but our goal is to close all the buildings we can, and move our airline operations – flight and maintenance – into one building. I’ve asked Gary Stover, our Vice President of Air Park, Tammy Voss, our ABX Air Controller, and Grant Richardson, who runs our IT systems, to lead our efforts. Look for us to start moving sometime in May.

Rumors

I have a couple of rumors this week.

First is the rumor that DHL has decided not to stay in Wilmington because it costs fifty to sixty million dollars a year to run the air park. I can’t speak to what DHL has or has not decided, but I can tell you it doesn’t cost anywhere near that much to run our base. We are working with DHL right now to understand what capabilities they need going forward. It is clear to me we will present them a model that shows they can save money by staying in Wilmington.

Another rumor says DHL has told ASTAR to stop flying their 727 and Airbus fleets, and to fly their DC-8s through the end of the year. DHL has indicated to us that they don’t intend to operate ASTAR’s 727s going forward. We don’t know about the other parts of the DHL plan.

That is all the news I have. We’ll update the Infoline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Gary Stover's Infoline  |  March 26, 2009

Good morning ladies and gentlemen. This is Gary Stover with the ABX Air Infoline for March 26.

Safety
Let’s begin with safety again this week. Recently the employees in Base Shop found that they were getting carbon monoxide readings in their respirator breathing air.  Property maintenance analyzed the compressor and breathing air system.  They identified that the heater in the compressor room had a small crack in the heat exchanger allowing some carbon monoxide to get sucked into the breathing air compressor.  Both groups worked well identifying a safety hazard and in determining the solution. Our thanks go out to Jack Sharp, Rudy Burden, Eugene Engle, Steve Smith, Sam Spargur, Phil Baker, Steve Wright, Pat Hinton, and Steve DeWeese.

Through Feb 2009 our OSHA Case Frequency rate is 24% below last year's total.  Our Lost Time Frequency is 37% below our 2008 year end value.  The Ground Dept, which has typically had a high OSHA Case Freq, has reduced their rate by almost 33%. This is good performance, and we very much appreciate the part everyone plays in making reductions like these happen every day. Thank you.

Operational Performance
Our STAR Goal for March is 95%. As of March 23rd we are at 95.01%. Let’s all stay focused on the job at hand for the rest of the month and ensure we meet this goal.

ATSG announces annual & 4th Quarter earnings
ATSG said its 2008 revenues increased 37 percent to $1.61 billion from $1.17 billion in 2007. Fourth-quarter 2008 revenues increased 35 percent to $430.7 million from $319.2 million. For more information please visit www.atsginc.com.

DHL update
Joe Hete and John Graber met last week with Ken Allen, newly appointed CEO of DHL Express about the future of the two key agreements – the ACMI and our Hub Services Agreement – that define our business with DHL. It was our first discussion with DHL about their plans for the future. We hope this meeting will be the first in a series of discussions. DHL is very happy with the service we provide but is looking for lower costs. We have no indication of how they will operate past September yet, but we expect to cover that ground in subsequent meetings.

AMES update
Several weeks ago it was announced that Airborne Maintenance & Engineering Services (AMES) was hiring. We are still hiring and continue to identify candidates that will help us build a world-class organization. We are very pleased with the amount of interest in AMES.

We have identified some of the key leadership positions across different operational and support departments. The positions and individuals selected to-date are as follows:

POSITION

INDIVIDUAL

Director of Component Repair & Overhaul

Jim Newell

Director of Engineering & Manufacturing Services

Brad Heath

Director of Human Resources

Debbie Loveless

Director of Line Maintenance

Mike Ebert

Director of Material & Stores

Bill Brown

Director of Quality Assurance & Training

Jeff Becker

Executive Assistant

Mary Jo DeMent


With these selections, the key leaders can now move quickly to begin another series of interviews that will assist in identifying additional leadership and technical positions within their respective departments. We would like to thank all of those that have participated in the selection process and to congratulate those that have joined AMES.

By the end of this week, all positions will be posted on www.airbornemx.com. Remember, the MRO openings are not posted on ABX Air bulletin boards. The only place you will find AMES opportunities is the www.airbornemx.com web site.

Transition Center update
The Air Park Transition Center has opened up Résumé Support, Interviewing Skills, and numerous computer classes to non-noticed employees. Classes will be scheduled with noticed employees first and then non-noticed employees will be contacted when seats are available in classes. These classes must be taken during non-work hours.

Please go to the Transition Center web site at airparktransitioncenter.com for a full calendar of events and call 937-366-2665 to schedule a class.

The Air Park Transition Center web site has a very useful Job Bank for job seekers. The Job Bank has over 270 open jobs posted by numerous employers and they are broken down into categories that are easy to identify. Go to airparktransitioncenter.com to see what jobs are listed.

Retirement plan
A letter was sent to all Retirement Plan participants on March 20, 2009 from Joe Hete. We had previously notified you that the Company elected to freeze the accruals in the Retirement Income Plan effective April 14, 2009. We understand that a company-sponsored retirement program is an important part of your total compensation. Joe indicated that the Company was reviewing alternatives for a "go forward" retirement program.

The Company has elected to enroll all eligible employees into the 5% contribution program under the Capital Accumulation Plan / 401(k). This is the same program that has been provided to employees hired after September 1, 2005, who were not eligible to participate in the retirement income plan.

All eligible employees will receive a contribution equal to 5% of eligible earnings to their 401(k) account. The contribution will be made after the close of each year. For 2009, since you earned credit under the Retirement Income Plan for the first 3 months of 2009, the 5% contribution will be prorated starting April 1, 2009.

Some other important details:

  • You must be employed by ABX Air on December 31 of each year to receive a contribution for that year.

  • The contribution will be invested in the age appropriate Fidelity Freedom Fund. After the contribution is made, you may elect to transfer the funds into any of the other investment options in the 401(k) plan.

  • You must be a full-time or part-time employee (not covered by a collective bargaining agreement) and have a least one year of service with the Company and work 1,000 hours during the year to receive a contribution.

  • You do not have to be contributing to the 401(k) plan to receive the 5% contribution.

  • You become 100% vested in the program after completing 3 years of service with the Company. Your service under the Retirement Income Plan will count towards vesting.

  • Severance and retention payments are not eligible earnings for calculating the 5% contribution.

Additional information about the 5% contribution can be found in the Benefits Handbook (Summary Plan Description) in the Retirement Plans section. This document is also available online at www.myabx.com/benefits.

If you have any questions about your retirement benefits please contact Kathy Eversman on ext. 62463 or Dawna Kennedy on ext. 62150.

Giving back
ABX Air and DHL are teaming up to support the Red Cross by hosting a series of $5 Casual Days. Just in Clinton County alone, over 5,250 people received a service from the American Red Cross in 2008. The next $5 Casual Days are Thursday, April 9, and Thursday, April 30.

Our People
Maintenance & Engineering honored six employees with Letters of Recognition: Bruce Boyers, Steve DeWeese, Chad Hadley, Jay Iseman, Glen Okumura, and Mitchell Worthington. Congratulations.

That’s all the news I have for this week. John Graber will update the Infoline next Thursday.

Thank you for all of your efforts.


John Graber's Infoline  |  March 19, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for March 19, 2009.

Safety
In Safety this week, I want to thank Tom Shaw for pointing out a Safety issue. Tom saw we’d left a hoist set up in a way that might violate OSHA regulations. He reported the problem, and we dismantled the hoist and took it out of service. Tom, thank you for helping us correct our error.

Like all complex organizations, we make mistakes. Keeping our error rate small is important, but just as important is how we solve the mistakes we do make. When an error creates unsafe or non-compliant conditions, help us. When you see something you don’t think is right, make sure you point it out and we’ll tend to the issue quickly.

Our Ramp and Transportation departments reported no recordable injuries for February. Exceptional performance. Thank you to everyone who put those numbers together in a very challenging month. Keep that streak going.

Ramp and Transportation’s February numbers are helping us with our overall Safety and injury performance. Our annual goal for OSHA-recordable events in 2009 is 6.2 events. Our current performance is 3.6 – a very good score. Any injury is one too many, so I’ll never be satisfied with any event in this area, but our performance is much better than it has ever been, and it is important to recognize that improvement. Thank you all for your hard work and attention to detail. Keeping each other Safe in our demanding environment is the most important things we all do.

Operational Performance
In our first quarter quality audits, Autosort, Primary A, Primary F, Sections 10 and 11, all scored a perfect 100 percent. Thanks to all of you who put those numbers together.

Audits are one measure – a snapshot – of how we’re doing for our Customer and for each other on a given day. The challenge is to ensure we hit the high marks whether an auditor is watching or not.

Our Recent Deal with DHL
Yesterday we announced that ABX Air and DHL have agreed to two things, both important to our company. First, we agreed to amend our $92 million note with DHL. DHL has agreed to extinguish $46 million of the note, and ATSG, our parent company, will pay DHL $15 million to further reduce the remaining principal we owe DHL. DHL will also withdraw its claim for us to repay the note early. DHL had made that argument last year after ATSG bought CHI. The impact of all this is that we’ve reduced a $92 million debt to $31 million – and only spent $15 million to do it. If you aren’t familiar with the note, it is an obligation that came out of DHL’s purchase of Airborne. It has been on ABX Air’s books from our first day as a new business. Second, DHL and ABX Air signed a memorandum of understanding – an MOU – to give DHL the option to dry lease four Boeing 767 freighters. We’ll lease them the aircraft at favorable rates, from August 15, 2010, through 2015. In return for those leases, DHL will assume financial responsibility for five leased 767 PCs. This agreement gives DHL access to aircraft it needs, if it needs them, and reduces our debt by almost $53 million. This agreement does not extend our ACMI contract with DHL.

Senior leaders from ABX, ATSG and DHL have been working these issues for over six months. When we sign final documentation and close the agreements, we will have reduced ATSG’s long-term obligations by almost 20% - helping us make our company significantly stronger. I want to thank everyone on the ATSG, ABX and DHL teams who helped put these deals together.

We have not yet started talking to DHL yet about the future of the two key agreements – the ACMI and our Hub Services Agreement – that define our business with DHL. We expect to start those discussions soon.

Rumors
There is a rumor that we’ve changed the way the retention program or retention payments will be made. The rumor is that a person can leave the company whenever they want, and receive retention. That is incorrect. One of the basic qualifiers for retention and severance is that you have to work for us as long as you are needed. That basic component of both programs has not changed.

That is all the news I have. We’ll update the Infoline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Brady Templeton's Infoline  |  March 12, 2009

Good morning ladies and gentleman. This is Brady Templeton with the ABX Air Infoline for March 12th.

Safety
First of all, Safety continues to be one of our highest priorities. You continue to demonstrate this as a priority by the marked improvements that have been achieved. Continue your focus on Safety through daily communications at all levels within the organization and with thorough follow-ups on any accident that involves an injury or damage event.

Operations
Congratulations on beating our STAR service goal for February. The goal was 94 percent, and we ended the month with 94.17 percent on-time arrivals. Only three more late arrivals would have dropped us below the goal. As you can see by this narrow success, every on-time arrival is important! You will see your STAR payout on your check on March 27th.

Transition Center
We continue to receive very positive feedback on experiences at the transition center. We appreciate the professionalism and effectiveness that is being demonstrated by all involved.

The State of North Dakota will hold a job fair at the Air Park Transition Center next Thursday, March 19th from 10am to 3pm. Bring your resume and 'Dress for Success'. North Dakota has thousands of jobs available. This could be a life changing opportunity for you.

Last week the Transition Center hosted a job fair for Mane Fragrance located in Lebanon, Ohio. Over 80 Air Park employees had personal interviews and the initial feedback from company representatives was excellent. They were impressed with the caliber of people that came to the job fair and everyone was well prepared.

Currently, most services offered at the transition center are available to noticed employees only. However, if you need assistance with a resume or other support, you can speak to the State Representative that is available at the transition center in bldg. 5 from 9a-3p Monday through Friday. Ellen Burchett will be happy to help you. Just call 366-2665 and ask for Ellen.

Don't forget to check the Transition Center website at www.airparktransitioncenter.com for other helpful information.

Thanks to all the staff supporting the Transition Center. They are doing an outstanding job in serving our displaced employees.

Airborne Maintenance & Engineering Services
We are excited with the high degree of interest in this new venture, witnessed by the sheer volume of on-line applications received. To date there have been more than 200 applications received for only 10 positions.

As we stated in our hangar talks last week, additional opportunities for management and staff positions will be posted this week. We are on track to post them by close of business Friday, March 13. Additional positions are expected early next week with all technical positions being posted the week of March 23.

We are finalizing an organizational structure that will provide a better understanding of the layout that’s been envisioned for this new company. In addition, we’ll provide a summary of other details necessary to make educated decisions on which job opportunity provides the greatest interest to you. These details will be posted on bulletin boards sometime next week.

We’re still on track to transition in May. Stay tuned for additional updates as they become available.

That’s all the news I have for this week. John Graber will update the Infoline next Thursday.

Thank you for all of your efforts.


John Graber's Infoline  |  March 5, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for March 5, 2009. I hope everyone is doing well.

Safety
In Safety this week, I want to pass on the comments of Nicholle Stratton, one of our Safety Coordinators. Nicholle wrote our Ground Department to find out who was driving tug 1842 the other night. Alex Hesler was the driver, and Nicholle reported that Alex "took the time to pick up freight that was in the main drive lane." She said, "Several vehicles passed by it, and the drive lanes were quite busy. Not only was he promoting Safety but also Customer service. Please tell him it was noticed and very appreciated."

Nicholle’s note gives me the chance to thank two of our folks – Alex for the care and professionalism he showed on the job, and Nicholle for taking the time to find out who he was and send me the story.

Thanks to both of you.

Operational Excellence
Jeremy Heard wrote to tell me about the remarkable job our line maintenance pros did in Memphis recently. We use a trailer there, and for some reason the power went out in the trailer for the better part of a week.

Undeterred, our Line Reps David Huff and Nick McTague, and Field Supervisor Wes Ballard improvised. They have to terminate a 767 at the station, and that required power. To make things go, David, Nick and Wes moved a DHL light cart off the ramp, put it next to their trailer, and used the generator on the light cart to power their computer and printer.

And the best part is our Memphis team turned their aircraft on-time all week long.

Thank you, gentlemen. Thank you very much.

Hangar Talks
We held our Spring Hangar Talks yesterday. Thanks to all of you who attended. If you missed the meetings, you can find a recording of the morning session on ABXnet.

We covered a lot at the meetings. I’ll hit the high points here.

We reviewed our Safety and Compliance performance. It has been excellent since May 28. Thank you for your work in turning in that strong performance day after day, month after month. We talked about how much our company has changed in the last nine months, and about the operational performance we’ve turned in – 98 percent on time. That performance is making a difference for DHL and can help us keep their business for a long time going forward.

We talked about the Deutsche Post investors’ call last week. In that call Deutsche Post’s CEO, Frank Appel, indicated the DHL/UPS deal was in doubt. But he said their performance in the United States drawdown had been excellent. That comment was a direct reference to the work of ABX Air. Appel announced that Ken Allen, who has been CEO of DHL US since May, has been promoted to CEO of the entire DHL Express operation. We have spent a considerable amount of time with Ken. He is someone we can work with.

I talked about the plans for our business we projected last June – trying to keep DHL for the long term, building our ACMI charter business beyond DHL, ATSG’s dry leasing aircraft, and expanding our services businesses. Today, ABX Air and ATSG are doing exactly what we said we’d do last June, and all those efforts are paying off.

We spent a lot of time going over ATSG’s new MRO business – Airborne Maintenance and Engineering Services (AMES). That business is starting to advertise for People. Go to their website, www.airbornemx.com, for more information. Longtime ABX Air leader Brady Templeton is the General Manager of that new business.

At ABX Air, we intend to hire the new MRO to perform all of our aircraft touch labor in the hangar and on the line. Terry Scherz, our VP of Maintenance and Engineering, is working with Brady Templeton on how we’ll transition work from ABX to AMES. I expect that we will transition our first work from ABX to AMES in early May.

We talked about the economy’s impact on the worldwide ACMI marketplace, and how we have to lower our costs to be more competitive. I told everyone that we are going to reduce pay in many of our airline positions to better align the compensation in those jobs with the environment we find ourselves in today.

We are going to do that for two reasons – to attract more ACMI business, and to show DHL that we can lower our costs and give them a cost structure that allows them to stay in Wilmington, using ABX Air to fly for them, for a long time to come.

I told you all months ago that Joe Hete and I would take the first pay cuts in our business. Joe and I cut our pay with our first paychecks of 2009. We will cut our pay again when we implement the cuts for everyone else in early May.

Rumors
A rumor coming out of the Hangar Talks was that we have a warehouse full of purple paint to use when FedEx moves into the base. I checked with our facilities and materials folks. No purple paint. They say every rumor has a kernel of truth to it; I don’t know the kernel in that one.

That is all the news I have. It was good seeing so many of you yesterday. We’ll update the INFOline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Bob Gray's Infoline  |  February 26, 2009

This is Bob Gray, Vice President of Regulatory Compliance and Government Affairs for the ABX Air INFOline for Thursday, Feb. 26, 2009.

Many of you have expressed your interests in the status of the ongoing negotiations with our pilot group. For the past three months the company has been working hard with the Pilot Union representatives in a concentrated attempt to reach a collective bargaining agreement that will allow the ABX to compete in the ACMI market. During that time, most of our efforts were spent developing new scheduling rules that were designed to eliminate the unproductive aspects of the existing agreement. We are pleased with the overall outcome achieved by these new work rules and are proceeding to work our way through the rest of the contract. While progress continues to be made, we are somewhat disappointed at the rate of that progress. The sooner we can nail down our new cost structure, the better assurance we have of being an effective competitor as we work to expand our presence in the ACMI marketplace.

To be competitive in that market, it will require lower overall costs across all parts of the Company, including not only the pilot group, but all the rest of the employees. We will all be working harder and taking on greater levels of responsibility, and we will be reviewing all cost areas. Our spending needs to be in line with our revenue. ABX Air must respond to these weak economic times so it can position itself for a strong recovery when the economy rebounds. Uncertainties with DHL business and the increased competition in the ACMI market are driving changes to our business model right now. Quality service at competitive rates is essential, and cost controls are the most effective way to accomplish this quickly.

We also have received several questions from our employees about the recently announced discontinuation of the excellent attendance program. To clarify, this discontinuation impacts the yearly attendance program, NOT the monthly productivity bonus. This productivity bonus is being done in conjunction with DHL, and is subject to their on-going approval. If you have any questions, please check with your supervisor.

For those of you that may not be aware, DHL has announced that effective February 26, John Mullen has stepped down as a member of the DHL Management Board, due to health-related issues. Mr. Mullen has been replaced by Ken Allen. Mr. Allen has most recently worked as CEO of DHL Express.

We want to continue to remind all of you that it is especially important during these turbulent times to keep your mind on the task at hand. Whether you are working on the ramp or in the cockpit, allowing your attention to be distracted from the safe performance of your job can result in an unsafe environment and place you in danger of serious injury.

Thanks to all of you for your continued hard work and dedication to make ABX Air a continued success. 


John Graber's Infoline  |  February 19, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 19, 2009. I hope everyone is doing well.

Safety
Starting with Safety this week, I got an email from the head of our pilots' union's Air Safety Committee. He expressed concern about ABX Air's Safety culture. I'll use his concern as a good time to reinforce the message I gave our entire ABX Air leadership team Wednesday. There is nothing more important to us than Safety.

Let me be perfectly clear about this: we must operate safely. With all the economic stress and strain on our People and our organization, we are more likely, not less, to create an unsafe condition. If we do that, we have made an error. If you see one of those errors, you have the responsibility and the authority to correct it. Don't try to use that authority to play with our business, but if you see something in our business that you don't think is safe, stop what you're doing and help us make it safe.

The most common Safety errors we make are when we rush to do something, when we don't follow procedure, or intentionally violate procedure. You never have to do any of that to do your job. Do what you need to, to operate safely, and take our pilot's Air Safety Chair's worries seriously. Operating safely take constant vigilance and attention. Please help us provide it.

DHL
In DHL news, Deutsche Post World Net, DHL's parent, has their 2008 earnings call on February 26, and they are expected to comment on the UPS deal then. We don't know what they'll say, but both DHL and UPS have said publicly that it will be hard for them to reach a deal.

ATSG News
We have an announcement about Amerijet. This week, ATSG, our parent, announced that CAM (Cargo Aircraft Management), another ATSG company, has agreed to lease Miami-operator Amerijet two 767 freighters, with options to lease them three more.

These leases are part of the ATSG business plan Joe Hete and I first talked about in Hangar Talks last summer, part of a plan to diversify our portfolio of products to the marketplace. You may remember we talked about operating aircraft on the ABX Air certificate, growing our other businesses as we grow non-DHL revenue, and dry-leasing some of our airplanes.

These dry leases create a new revenue stream for ATSG, and can secure many jobs both here in Wilmington and elsewhere. Though our flight crews will not be operating these aircraft, ATSG will provide virtually every service from maintenance to spare parts to pilot training.

Cost Control Efforts
I'll move to our pay plan for 2009. This week we announced that we are instituting a pay freeze at ABX Air. The freeze will go into effect on February 23 and run for 52 weeks. Every ATSG company is freezing pay. There are many details surrounding how we will implement the freeze, and we will work hard to make sure we get them all right, but this is a complex process. If you see us making a mistake, point it out and help us fix it.

We've taken this action because it's clear to us that the economy is getting dramatically worse, and there will be an impact on our business. We have to manage costs and adjust, so that when things turn around, we're best positioned to take advantage of the opportunities that will be there.

Freezing pay is the first of several actions we'll take going forward. I've asked our senior leadership team to restructure ABX Air and create a lower-cost model that is a strong competitor in the ACMI marketplace. We will change processes, we'll shed work, and we'll create new efficiencies in our business. They will look at how we do everything and what we have to do to be competitive. My expectation is that we will complete this restructuring by the first week of May.

Hangar Talks
I told you last week that we'd have Hangar Talks this week. I need to delay those until March 1, because I think its best to have our meetings after we hear the Deutsche Post World Net earnings call on February 26. March 4 is the first Wednesday after that call, when most People are here, so we'll have our meetings then. Please look for the schedule and come hear Joe Hete and I talk about our plans for the year ahead.

Rumors
I heard the rumor that we are talking with DHL about operating 767s for them internationally. I don't usually comment on business opportunities, but in this case I can tell you we have had no such discussions with DHL. They've been bound by an exclusivity agreement with UPS for quite some time and have not talked to us about future business at all.

That's all the news I have. We'll update the INFOline again next Thursday. Thank you all for all you're doing for us and our company. Please drop me a note with any questions or comments. My email address is john.graber@abxair.com. Take care.


John Graber's Infoline  |  February 12, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 12, 2009. I hope everyone is doing well.

Safety
Its north of fifty degrees in Wilmington this week, but as I sit here writing this the wind is blowing at fifty knots. Much of the safety in our operations starts with planning. Tuesday morning, when Jim O’Grady started tracking these winds, all of you went to work. You mobilized, securing our equipment, our aircraft, and our ramps. That preparation helped us make it through Wednesday night’s winds unscathed. It was a good job by everyone concerned. Thank you for your attention to detail.

Retention
There have been many questions regarding retention payments. Today, I have some good news. DHL’s senior US leaders have told us they intend to continue the retention program until the end of June. That would make the program run for a full year. We had worried that they would stop the program early, because their deal with UPS appears in doubt. I spoke with DHL’s leaders myself this week, and they assured me they will pay retention for the full year. Payment will be made in July or early August.

Many of you have asked me if you have to leave now to ensure yourself you will get the retention payments. You do not.

DHL and UPS
As of Wednesday, February 11, DHL is still negotiating with UPS.

Tough Year
It is clear to me that 2009 is going to be a tough year for ABX Air. Not that 2008 was any cake walk, but we have a lot of hard work to do this year, and we have to do it in really tough conditions. In addition to all of DHL’s issues, our other businesses are impacted by the poor global economy.

Charter cargo is off in Miami. Asian flying is down. The good news for ABX Air is that our 767s are fewer in number and in stronger demand than 747s, for instance. But the poor economy’s impact on oil, and the resulting lower fuel prices, makes it easier to keep larger, more fuel inefficient aircraft flying.

We are going to have to respond to the changes we face. I’ve tasked our senior team with building a restructuring plan for our company – one that will position us to survive the downturn, and be ready for the new cycle when it comes.

Hangar Talks
We’re scheduling a series of hangar talks for next week. Look for the schedule. In those talks Joe Hete and I will talk about our plans for the year ahead. We’ll cover current events with ABX Air and DHL, the new MRO, and we’ll answer your questions. We’ll hold the meetings several times during the day and night to cover all shifts. Please plan to attend.

Joe Muckle’s Editorial
Joe Muckle, the president of our pilots’ union, wrote an editorial in the Wilmington News Journal this week. A lot of you tell me you’re scratching your heads after reading it. Joe took ABX Air’s leadership to task in a carefully-written piece that puts out a lot of heat, but not much light.

Now you will never hear me shoot at our union or the pilots it represents. If we’re careful, and we can reach a competitive and prudent agreement, our company and our pilots union have years in front of us to work together. I want those years to be good ones, constructive ones, beneficial ones. When we disagree with our pilots and their union, it isn’t because they’ve done something wrong or because they are bad People. We disagree because we have a different point of view. Joe has chosen to characterize our disagreements as something attributable to management greed or dishonesty. That just isn’t true.

He may have taken that tack because hundreds of our pilots are losing their jobs – over 150 next week alone. They don’t deserve that anymore than anyone else at ABX Air. Our contract paid our pilots an average of $192,000 apiece last year. 233 of our pilots made over $200,000, and a few made over $400,000 in 2008. But for all that pay, our contract has never had a severance program.

When we saw DHL getting into trouble last summer, our management team went to DHL and asked for money to help our pilots. DHL agreed to provide funding. The company and the union have to negotiate a new part of the agreement for severance before DHL will pay us. The company and the union agree that all the DHL money will be directed toward our pilots, but we don’t agree on how to split it between severance and the pilots’ pension program. We’ve been negotiating for over six months.

So now, while we’re at the table working on how to move forward together, Joe writes his editorial. You’ll have to ask him why. Reading the article, I can’t tell. It doesn’t seem designed to bring the two sides together.

I have no new rumors this week, and that is all the news I have. We’ll update the Infoline again next Thursday. Make sure you come to a hangar talk next week if you can.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


John Graber's Infoline  |  February 5, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 5, 2009. I hope everyone is doing well.

Safety
Winter came in earnest last week, hammering us with 2009’s first major snow event. Snow, freezing rain, sleet, ice, and more snow pelted us for more than three days. In the midst of the storm we ran over 20 hours of continuous deicing operations. We dispensed more than 100,000 gallons of deice fluid. We moved thousands of tons of snow. Under Kent Stewart’s leadership, we met our deice goals. Gary Stover and our Air Park professionals kept our airport open. Don Cook and Jan Woolums and their teams did remarkably well moving freight. Contingency, Crew Scheduling, Flight, and Maintenance Operations--everyone pulled together to make a real difference for our Customer.

I’m talking about the weather now, in my Safety section, because one of the most remarkable things about the three days is that we only had one injury. One. We worked thousands of hours, hundreds of hours of overtime. In all of that, we had one person slip and fall. One injury.

I was out in the operation for much of the worst weather. I saw you working hard, working smart, and working Safely. I cannot thank you enough for your dedication and attention to detail. That kind of Safety performance is hard to achieve. I’d prefer no one get hurt, and that has to be our goal, but your performance was great. Thank you.

Performance
Since May 28, 2008, we’ve run 98.74 percent on time for hub departures, counting the factors we control. We’ve built that record over 252 operational days. Thank you for that great job.

Milestones
The end of January marked the end of our domestic product--the product that for decades was the backbone of our business. Many thousands of you have dedicated your time, talent, and sweat to Airborne Express and ABX Air. You built one of the most innovative, efficient, and reliable delivery products in history. You should take a minute and reflect on all you’ve done over the years.

We’ve obviously reduced the size of our company as the domestic product came to an end. In the last half of 2008 we have lost nearly half the 10,000 People we used to employ. We’ve parked 55 DC-9 aircraft, and on any given day we have DHL’s 767s sometimes sitting idle. Those aircraft reductions cost many of our pilots their jobs. Many more pilots face huge cuts in pay as they are forced to downgrade from captain to first officer.

Severance is not part of our pilots’ contract as it stands now. When we saw DHL’s trouble beginning, it quickly became apparent that our pilots’ group would be the only set of Employees impacted by DHL’s decline that would not be entitled to severance. That isn’t right, so we sent John Starkovich, our VP of HR, to ask DHL for help. There are two broad problems facing our pilots--the first is the lack of a severance plan and the second is an underfunding of their pension program that goes back to when DHL bought Airborne Express. After our discussions, DHL agreed to provide millions of dollars for the benefit of our pilots.

Last fall, months before our first pilot lost his job, we started negotiating with our pilots’ union on how to spend DHL’s funding. The union’s position is the money should be spent predominately on severance. We believe the money is best spent on severance and the pilots’ pension fund. There is good work being done on both sides of the table to reach an agreement--but there is a wide gap between the positions. It is important that we reach agreement on these issues soon because 160 pilots lose their jobs this month in our largest pilot layoff ever.

Industry and DHL News
ABX Air is not alone in these hard times. The International Air Transport Association (IATA) reported Asia–Pacific traffic down 26 percent, and Latin American traffic down 23.7 percent for December. IATA’s figures only cover scheduled international traffic, not charter flying, but they paint a bleak picture.

In a conference call this week, UPS’ CFO, Kurt Kuehn said UPS isn’t looking for any “meaningful recovery until 2010.” UPS is laying off aircraft mechanics, has frozen management salaries, and is suspending its 401(k) match.

During that conference call, Scott Davis, UPS’ Chief Executive Officer, told analysts that it has become “very difficult” to reach an agreement to fly freight for DHL. He cited DHL’s scaled back plans in the US as the reason. Davis told analysts that negotiations are continuing, and he said UPS “gained significant new volume as a result” of DHL’s move.

That quote will spark all kinds of rumors around ABX Air. What you need to know is that DHL has told us nothing definite about what they intend for their business, or for ABX Air going forward. When you hear what someone calls the big news or the true story, take it with a grain of salt. DHL is still sorting out huge issues. When they tell us their intent, we’ll tell you, and we’ll do it as quickly as we can.

All these reductions are hard. I won’t try to tell you anything different. But I will tell you that the changes we’re making in our business are going to keep it alive. We are in the worst economic times of a generation. Thousands of businesses around the world are failing. We are not. We aren’t what we were, and that is hard to accept, but I’d suggest that we can be better than we were, and that’s what we’re working towards right now.

MRO
Late last week we met with the state of Ohio about our MRO business. It was a very good meeting. State representatives showed us much of the aid they are proposing to help our MRO get off the ground. We will wind up these discussions with the state no later than February 23. Once the state commits its aid package to us, we’ll be able to formally announce our MRO plans. Thank you again for your patience.

I have no new rumors this week, and that is all the news I have. We’ll update the Infoline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com


Terry Scherz' Infoline  |  January 29, 2009

Good afternoon, ladies and gentlemen. This is Terry Scherz from Aircraft Maintenance with the ABX Air INFOline for January 29, 2009. I hope everyone is doing as well as can be expected.

Safety
I will start right off with our number one priority--your safety--and some good news. The year-end results for 2008 are in, and most departments saw significant decreases in their personal incident accident rates. The Ground Department in many areas, Air Park, and Aircraft Maintenance made notable progress in 2008 versus 2007 results. The Aircraft Maintenance accident rate decreased by almost 50 percent.

Now before someone thinks or says, "Well, we had less employees in 2008, so our accident rate should be lower," that is not the way it works. The rate is calculated on a formula that takes into consideration injury events per hour worked. Your diligence and efforts are paying off with real results. Keep doing more of what you've been doing, and look out for each other. One injury is one too many.

Transition Center
The Air Park Transition Center in Building 5 will hold an open house next Thursday, February 5 from 9 a.m. to 10 p.m. All Air Park employees and their spouses are welcome to tour the facility and learn about the services offered. I've had the opportunity to talk to a few employees who are using the Transition Center, and the feedback has been very positive. If you have not already, you really should check out what it has to offer you.

MRO
We continue to make progress, admittedly slower than we would like. We have a meeting with the state this Friday, which will hopefully put us into a position very shortly to communicate to you such things as pay, benefits, and the application-interview process. I am sure John Graber will update you further on next week's INFOline.

With that said, our existing Aircraft Maintenance Department remains very busy servicing existing and new customers' aircraft, which will be very important to the new MRO.

Industry News
I hope most of you took the opportunity to watch 60 Minutes this past Sunday. As most of you know, the 60 Minutes crew made several trips to Wilmington during the past couple months in preparing for this story. We may all have our own takes on how the story was told, but I thought they did a fairly good job of telling the story of the economic devastation and challenges that Wilmington, the surrounding area, and most importantly our employees are facing. We know that many employees willingly shared their story, and we appreciate your time, even if they did not make it into the 12-minutes segment that was aired. I understand that 60 Minutes will be returning to town again supposedly to do a follow-up segment. We will keep you advised as we hear more.

Another sign of tough economic times our industry is going through is an interesting article this week regarding one of our long-time competitors, UPS. A Louisville newspaper reports that UPS will be laying off about 60 aircraft mechanics. The company blamed the economy for the decision to lay off the mechanics, in which they said were the first sizeable layoffs of mechanics in the history of the airline. They went on to say that because UPS is flying less, they need less mechanics. A number of former ABX technicians work for UPS, and we wish them the best of luck.

Union Negotiations
Company and Pilots' Union officials are continuing negotiations with our flight crews. They are meeting in Annapolis, Maryland with a federal mediator, and here in Wilmington. The working groups have made substantial progress, and we remain hopeful that we can come to an agreement that works for everyone. A successful outcome is certainly very important to our collective future.

Weather
Our weather at Wilmington has been a real challenge the past couple of days. Last week on the INFOline, John Graber said, and I quote, "We haven't had that much snow this year." What was he thinking when he made that comment? Well, this week we have been slammed with snow, then ice, and more snow. Working conditions were deplorable, and the majority of our employees came to work. For all of you who braved the elements, thank you. When you left home, you knew what you had to look forward to. Miserable weather, terrible working conditions, long hours, and you put in a tireless effort until the job was done. You did it well, and most importantly you did it safely.

A special thanks to the Air Park crew and the deice teams for sticking with it. Excellent job.

Milestones
Someone from the outside might ask, and actually I have been asked this a couple times: Why do our employees work so hard in these uncertain times for them, in conditions as tough as we have seen this week, to provide our customers excellent and dependable service day in and day out? Why do they still do it?

The answer to this came quite easily to me. An ABX employee only knows one way to get the job done. It is the way you have always done it. It is who you are, and you are part of a team that has pride and integrity in how you do your job. Thank you so very much.

A couple more milestones are coming up, one this Friday and another next Friday. Jim Taylor, our Senior Director of Day Operations Ground Department, will be ending his 30-year career with ABX Air this Friday. During our earlier years, I worked with Jim more closely and could always count on him to help Aircraft Maintenance out in a pinch to minimize aircraft mechanical delays. Jim has played a major role in building our airline, and he will be missed. Please wish him well.

Then next Friday Bernie Rosenow, our Director of Base Shops, will be retiring after a career at ABX Air of almost 28 years. He and I have worked closely together for this entire period. Bernie is another that played a major role in building our company. If you get the opportunity, stop by and wish him well.

That is all I have to say for this week. John Graber will be back next week on the INFOline. Until then be safe and look out for each other. Thank you.


John Graber's Infoline  |  January 22, 2009

Good afternoon ladies and gentlemen. This is John Graber with the ABX Air Infoline for January 22, 2009. This I hope this finds everyone well and staying warm.

Safety
Our Air Park Services personnel are working almost 24 hours a day to keep our runways, driveways and walkways clear. We haven’t had that much snow this year, but it is coming with enough frequency to make things dangerous. Please remember that this is our most dangerous season of the year. Every year several People slip and fall. Please, take the extra time to make sure you are Safe.

New Flying
We started our first scheduled trans-Atlantic revenue flight this week. The route is from Kennedy Airport in New York, to Liege, in Belgium, and back. We’re flying for TNT, a major freight forwarder. We’re able to fly the route in part because we have reached agreement on augmenting crews with our pilots union. Thank you to everyone involved in making this new venture a success. And if you’re one of our pilots new to MNPS airspace re-release and North Atlantic procedures, please make sure you square yourself away before your assignment. This is good flying, but you do have to be ready for it.

ABX Air is Going to Change
We’re well into the demanding job of designing the new ABX Air. The new ABX Air will be similar to the one we work for now, but better – and worse. We’ll be better because we’re going to be faster, leaner, and less tied to one Customer. Some will say we’re worse because for some of our jobs, the new business can’t support the same pay and benefits many of us are used to.

In our new ABX Air we’re going to have to increase our productivity while we cut costs. Most of us are going to have to learn how to do more than we do today, and do only those things that add value for our Customers.

The new ABX Air will fly aircraft, and we’ll operate postal centers, and we’ll run operations for DHL as long as they need us to. We’ll sell aviation material in Bill Brown’s business, and Gary Stover’s business will provide a host of services.

I’ve asked our senior leadership team to support those business lines with an organization that is flatter, more responsive, and more supportive of our People and our Customers. That will be very hard to do, and we have no choice but to do it. That’s what our competitors are doing in our marketplace everyday. If we want to survive going forward, we have to meet our competition – but of course we don’t want to just survive – we want to dominate. We want to excel. So meeting our competitors isn’t enough. We have to beat them. And we can.

But that means change, and that is my biggest worry going forward. We’re going to ask everyone to do things differently than they’ve ever done them. We’re going to ask for more initiative, more drive, and more Customer focus. We’re going to ask you to work with a smaller, leaner organization. And we’re going to help you have fun.

Soon after DHL made its announcement May 28th, I started explaining to our folks that we have three stages in the journey in front of us. The first stage was reacting to DHL’s news, and helping our organization and our People cope with that. That stage is well along now, but still has a long way to go. The second stage is one of transitioning from what we were to what we’re going to be. We’re entering that stage now, and have to do that work while we continue supporting the tasks of the first stage of our journey. The third stage is accelerating our growth as we move forward, capitalizing on the groundwork we’re doing now, moving away from today’s hard times. That stage is still in front of us, but today we’re doing the hard work that will form the foundation we need to get there.

I know it is hard to think of a future that is better, when we’re going through such hard times now. But there is a future for ABX Air, and it is a better future, and we are working on it every day.

MRO
We are very close to finalizing our negotiations with the state of Ohio on financial aid for the MRO venture. You’ve heard me say several times that I thought we’d be done by now. We aren’t. We’re waiting on the state, and we can’t move until we get final word from them. As soon as we do, we’ll make sure you know where we are.

Transition Center
We’ve provided transition assistance to hundreds of our People, and almost all the feedback we’ve gotten is that we’re doing a very good job. This past week though, I got feedback from one of our pilots that we have some incorrect information out there about what benefits are available to pilots. That complaint was correct, and we’re working right now to make sure we get the right material to everyone. This is especially important now, because we have so many pilots who are losing their jobs.

If you are a pilot, and you have questions about what is available to you, please call the Chief Pilot’s office. We’ll make sure we put you on the right track. Getting you aid will take some work on your part, but we can make sure you know where to go for the support you deserve.

Performance
Our performance continues to exceed all expectations, but DHL’s new schedule is demanding more of us. Last week DHL implemented its new system network for the United States. They planned a structure that has little truck traffic, many more aircraft through stops than in the past, and a much reduced footprint in the sort and on the ramp.

Those changes helped knock our STAR performance for January down to 88.19%, against a goal of 93%. We’re examining the schedule to understand where we might recommend changes, but in the meantime it is critical to focus on the operation every day.

Since May 28, 2008, we’ve run 98.78% on time for the hub departures. That performance, day after day, is something you can be very proud of. Thank you.

DHL News Business Week magazine reported this week that the DHL UPS deal is late. Of course we’ve all known that for some time. Business Week quotes an analyst as saying he doesn’t think the deal will happen.

You can find speculation about a DHL UPS deal everywhere. But the only ones who know the status for certain are the DHL and UPS leaders who are negotiating. DHL’s US CEO tells me they are still negotiating with UPS. I tell you that simply to tell you something that is not a rumor.

Rumors
There is a rumor this week that DHL asked us to keep flying five DC-9s and I turned them down. That isn’t true. We follow a very formal, written process when DHL parks an airplane or closes a station. We parked our aircraft only in response to DHL’s written instructions. If DHL wanted to--or still wants to--fly DC-9 aircraft, all they’d have to do is tell us, and we would put that in motion as quickly as possible.

And I’ve heard the rumor again this week that our severance and retention programs are being stopped early, or otherwise coming to an end. Our agreements with DHL have not changed. It is important to note however, that as we get further down the road of deal or no deal between DHL and UPS, it gets more likely that DHL will give us a plan for their final transition. That could include their requests for changes to the agreements. And, DHL is paying retention for no more than a year, but they can stop the retention period when they choose. That has always been part of the agreements--it is not a change.

That is all the news I have for this week. We’ll update the Infoline again next Thursday.

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is john.graber@abxair.com.


Mike Gerdes’ Infoline  |  January 15, 2009

This is Mike Gerdes, Sr. VP of Flight Operations, with this week's ABX Air INFOline update for Thursday, January 15, 2009.

Performance for the past five days was 94.91%. Month to date is 95.61% and average since May 28, 2008 is 98.93%. Our goal for January is 93%. Once again you are demonstrating you commitment to quality service in these difficult times.

Safety is always a focal point for all of us. I’d like to share some data with you on how successful you efforts have been related to reducing injuries.

In night ramp operations, recordable injuries went from 167 in 2007 to 60 in 2008, with lost time also reduced from 107 to 41. The focus of managers, supervisors and employees in reducing incidents has made a big difference in injuries for the ramp group. New procedures were implemented that have obviously paid off.

In the Haz Sort, recordable injuries went from 25 in 2007 to 10 in 2008, with lost time reduced from 16 to 7. This is an area that deals with many different types of safety concerns throughout their job functions, and the improvement here is a testament to their continued focus on safety.

In Non-Conveyables, again improvement over 2007 was achieved, with a reduction from 68 recordable injuries to 22 in 2008, with lost time down from 36 to 11. This area made a concerted effort to increase safety and it was a challenge they meet. Again, this is a great indication of everyone working together for a common goal.

These are just a few of the reports we are getting in which every employee here at ABX is proving their commitment to safety and the well being of their fellow employees. Keep up this important effort, as the safety and well being of each person here is everyone’s focus. Everyone should leave work in the same shape they came to work everyday.

A reminder that Fidelity Investments is holding retirement workshops in the Air Park Transition Center on January 16th and 30th. See the employee website for times and additional information.

In Flight Operations, we continue to work with the Pilots Union on many issues as the Company transitions to its’ new business pursuits. We have been meeting with the Union almost continuously to cover many items, and I am pleased to report that progress is being made.

We are also working on new capabilities for our aircraft, including Extended Range Two Engine Operations, or ETOP’s operations. This will allow our B767 aircraft to fly more direct routes over water to provide additional lift for our charter customers. We hope to have that completed and FAA approved this spring.

I had the opportunity to visit the night sort at the end of last week. I wanted to share with all of you how impressed I was with the professionalism of the managers, supervisors and employees I visited with and talked to. It was a very difficult evening with many of your friends and colleagues having their last day of work that night. Through the tears and goodbyes, everyone worked very hard to make the operation go. Everyone worked through the difficulties of that evening and showed their professionalism. You should be very proud of your accomplishments. You should be very proud of your fellow employees as well.

Thank you again for all you do and as always, take care of each other and be safe everyday.


John Graber’s Infoline  |  January 8, 2009

Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for January 8, 2009. This is my first Infoline of the New Year. I hope this finds everyone well and having had a great holiday. 

Safety 
We are well into demanding winter weather operations here in Wilmington. Please make sure you’re focused on Safety now, more than ever. If our history is any guide, the most common accidents we’ll have this winter will be slips and falls. Take the extra time to make sure you are Safe. Our Safety Department has put out an excellent resource for winter Safety on the web. Follow their advice and you’ll be well on your way to a Safe winter season.

Follow the lead of our Air Park Services organization. In the month of December our Air Park professionals turned in a perfect record – they had no recordable accidents or incidents. Great job.

Performance 
Congratulations on beating our STAR service goal in December for the fifth month in a row. The December goal was 93 percent, and we ended the month with 95.33. That is exceptional performance, and I very much appreciate the hard work you have to do every single day to make the goal. Thank you. The STAR incentive payout will be on your January 16th check. Our goal for January is 93%. 

We’ve run 99.14% on time in the 224 operational days since DHL’s May 28th announcement – looking at hub departures and the factors ABX Air controls. That near-perfect performance, day after day, is something you can be very proud of. Thank you. 

DHL News
Senior DHL leaders tell me they are still negotiating with UPS. That means they’ve missed the deadline they set to have a deal by the end of 2008, and you may remember they missed the original deadline for a deal, set last summer. There is a lot of speculation out there about what these delays mean. Everyone seems to have an opinion, and of course there are lots of rumors. What I would tell you is that, whatever you hear, the only concrete piece of information available is that DHL UPS negotiations are continuing, and they’ve taken longer than DHL planned.

We do not know what the delays mean to ABX Air. We do know that we are planning to run our night sort operations and the flights that support them until at least July 1, 2009. 

System Changes
Tammy Voss covered the closing of our regional hub system in last week’s Infoline, but I want to take this opportunity to recognize the hundreds of remarkable ABX Air Employees who did so much for so many years in the service of our company, our Customers, and each other. The People of our regional hubs are second to none. I wish all of you well, and I thank you.

This week marks another milestone for us – the last revenue flight of an ABX Air DC-9. This brings to a close decades of excellence in DC-9 service. I want to thank everyone who helped make those years of performance possible, especially our pilots and maintenance professionals. 

These changes impact hundreds of our Employees. Many of our pilots and mechanics are losing their jobs as we stop flying the nines. Please thank these fine professionals for all they’ve done for us. 

These large reductions in our business are the result of DHL’s withdrawal from the domestic market. In the next few days DHL will draw nearly 400 field locations down to about 130. Many flight lanes will close. Many locations once served by individual aircraft are being paired with through stops. 

The final parts of DHL’s transition are the changes we’re making in the Wilmington hub. You’ll see many schedule and operational changes starting this week. Our Ground Department has been working hard to coordinate the changes with DHL. The implementation of DHL’s new network will be challenging, so please make sure you are aware of the changes as you start your work.

Rumors
There is a rumor this week that our retention benefit ends in January. That is not true. Our retention program has not changed. 

That is all the news I have for this week. We’ll update the Infoline again next Thursday. 

Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is
john.graber @abxair.com.


Tammy Voss’s INFOline  |  Jan. 1, 2009

Hello, this is Tammy Voss with the ABX Air INFOline for January 1, 2009. 

Performance
As we reflect on 2008, we can all be very proud of the excellent performance that we have provided DHL. In the 218 operational days since the May 28th announcement, we have run 99.16% on time. This is outstanding. Our STAR goal for December is 93%. Our performance has been 95.28% so far this month. Keep up the excellent work!

Regional Hub
January 4 will be the last day of operations for the ABX Regional Hub Network. Day after day, the Regional Hub employees have demonstrated their ability to work thru numerous challenges while producing solid results for our customer. In 2008, the Regional Hubs handled over 110,000 truck departures. Less than 1% of the departure delays were attributable to hub loading. This outstanding operational performance was achieved while simultaneously making gains in safety, quality, productivity and cost reductions.

The Regional Hub Team is and always has been a dedicated group of individuals with a tremendous work ethic. Thank you for all that you've done for our company. You will truly be missed.

DHL Update
Previously, we had communicated that DHL planned to stop operating the DC9 fleet sometime in January. DHL has now provided us formal notification that they will cease flying the DC-9 on Jan. 11, 2009. 

After January 11, ABX will continue to provide DHL with Boeing 767 service and night sort operations in Wilmington. DHL has stated that they will require ABX services through at least July 1, 2009. At this time, DHL has not provided ABX the 2009 freight volume forecasts and has not yet made a decision about the status of the airport. We continue to address these issues with DHL and will update you with any changes.

Our ABX Management team continues to work with DHL to explore how we can serve them in their new U.S. Strategy. In addition, we are focusing on expanding our 3rd party business. We are in the process of negotiating additional B767 Charter contracts and the MRO will be launched this spring offering five lines of business. 

As always, our ABX leadership is focused on minimizing the impact and hardships to all ABX employees. As we reduce jobs, we will treat our people respectfully, we will give notice, and we will make sure we take volunteers first whenever we can. Now more than ever, it is important that we focus on Safety. Each day we are challenged by the weather conditions, the flurry of activities and for many of us, new job responsibilities. We cannot allow these challenges to distract us. We must continue to make safety a priority. 

We thank you for your patience, hard work,actwv focus on being safe and keeping the system running well throughout 2008. We wish you and your family all the best in the coming year. 

Thank you for your time and all that you do for our Company. John Graber will be back with an update to the Infoline next Thursday. 

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Wednesday, June 19, 2013 04:57:59 PM