2009 INFOline
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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
Compliance Pilot
Severance and our new CBA 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 Rumor
Control 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
Compliance DHL
Negotiations Rumor
Control 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
Compliance DHL
Negotiations TNT
Flying
Management Surveys Tuition
Reimbursement for 2010 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
DHL
Negotiations Shoes in
Lagos
Thanksgiving Rumor
Control 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 Pilot
Negotiations 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 Reminders
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 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 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 Fall
Charity Drive ABX
Workforce Downsizing Cafeteria 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 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 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 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 Thank You
John Graber's
INFOline | October 29, 2009 Safety
Pilot
Negotiations UPS
Results Beth
Huber 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, 2009This 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
Compliance Pilot
Negotiations ABX Air
Business Update Air Cargo
Trends 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, 2009Script unavailable. John Graber's INFOline | October 1, 2009Good 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
Compliance ABX Air
Business Update 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 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 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
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 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 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 Safety
Compliance ABX Air and DHL 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 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.
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
Pilot Negotiations 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 Safety Compliance Africa Update 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 Pilot Negotiations 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 Safety Compliance 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 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 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 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
Safety and Compliance 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 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 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 Retention Bonuses CVG Update Interim Operations for DHL ATSG Second Quarter Earnings ACMI Agreement Developments Pilot Negotiations That is all for this week. Take care. Gary Stover 's Infoline | August 6, 2009Good 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 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 Investor Conference Call 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 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 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 Compliance CVG Update 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 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 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 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 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 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 Rumors 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 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 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 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 DHL Transition Air Park Transition Center Retention 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 Compliance 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 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 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 Rumors 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 Compliance 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 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 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 In Closing 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 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 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 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 DHL Jobs ATSG Stock Regains Compliance with
NASDAQ Rules 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 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 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 People 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:
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 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 Compliance Please Note Air Park Transition
Center DHL Update 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 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 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 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 AMES Progress 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 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 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 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 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 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:
Compliance People 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 DHL’s Plans for the
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 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 ABX Air Reorganization
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
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
Retention Money
Deferrals Rumors 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 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 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, 2009Good morning ladies and gentlemen. This is Gary Stover with the ABX Air Infoline for March 26.
Safety 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
ATSG announces annual & 4th Quarter earnings
DHL update
AMES update
Transition Center update 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 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:
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
Our People 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, 2009Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for March 19, 2009.
Safety
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 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 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
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, 2009Good morning ladies and gentleman. This is Brady Templeton with the ABX Air Infoline for March 12th.
Safety
Operations
Transition Center 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 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, 2009Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for March 5, 2009. I hope everyone is doing well.
Safety
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 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 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 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, 2009This 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, 2009Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 19, 2009. I hope everyone is doing well.
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
ATSG
News 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 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
Rumors
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, 2009Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 12, 2009. I hope everyone is doing well.
Safety
Retention 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
Tough
Year 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
Joe
Muckle’s Editorial 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, 2009Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for February 5, 2009. I hope everyone is doing well.
Safety
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
Milestones 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 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 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, 2009Good 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 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
MRO 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 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
Weather A special thanks to the Air Park crew and the deice teams for sticking with it. Excellent job.
Milestones 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, 2009Good 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
New
Flying
ABX
Air is Going to Change 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
Transition Center 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 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
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.
Tammy Voss’s INFOline | Jan. 1, 2009
Wednesday, June 19, 2013 04:57:59 PM |
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