December
31, 2009 - John Graber |
June
18, 2009 - Jan Woolums |
December
24, 2009 - John Graber |
June 11,
2009 - John Graber |
December
10, 2009 - John Graber |
June 4,
2009 - Jennifer Miesse |
November
26, 2009 - John Graber |
May 28,
2009 - John Graber |
November
19, 2009 - John Starkovich |
May 21,
2009 - Tammy Voss |
November
12, 2009 - John Starkovich |
May 14,
2009 - John Graber |
November 3,
2009 - Scott Glasser |
May 7, 2009
- Mike Gerdes |
October 29,
2009 - John Graber |
April 30,
2009 - Todd France |
October 22,
2009 - Bob Gray |
April
23, 2009 - John Starkovich |
October 15,
2009 - John Graber |
April 16,
2009 - John Graber |
October 8,
2009 - Scott Glasser |
April
9, 2009 - Debbie Loveless |
October 1,
2009 - John Graber |
April
2, 2009 text - John Graber |
September
24, 2009 - Jennifer Miesse |
March 26,
2009 text - Gary Stover |
September 17, 2009 -
John Graber |
March 19,
2009 text - John Graber |
September 10, 2009 - Mike Gerdes |
March 12,
2009 text - Brady Templeton |
September
3, 2009 - John Graber |
March 5,
2009 text - John Graber |
August 27,
2009 - Tammy Voss |
Feb. 26,
2009 text - Bob Gray |
August 13
and 20, 2009 - John Starkovich |
Feb. 19,
2009 text - John Graber |
August 6,
2009 - Gary Stover |
Feb. 12,
2009 text - John Graber |
July
30, 2009 - John Graber |
Feb. 5,
2009 text - John Graber |
July 23, 2009 - John Graber |
Jan. 29,
2009 text - Terry Scherz |
July 16, 2009 - Bob Gray |
Jan. 22,
2009 text - John Graber |
July 9, 2009 - John Graber |
Jan. 15,
2009 text - Mike Gerdes |
July 2, 2009 - Terry Scherz |
Jan.
8, 2009
text - John Graber |
June 25,
2009 - John Graber |
Jan.
1, 2009
text - Tammy Voss |
John Graber's
INFOline |
December 31, 2009
Good evening
ladies and gentlemen. This is John Graber with the ABX Air Infoline for
New Year’s Eve, December 31, 2009. I hope this finds everyone doing well
and having a wonderful holiday.
Let me start
this week by remembering the thousands of our servicemen and women
deployed around the world, but especially in Afghanistan and Iraq. We
live the lives we do because of their service. I always think of these
Americans and their families at the holidays. Being apart is tough on a
soldier all the time, but especially now. If you know a service member,
look in on their family this weekend. They will appreciate that very
much.
Safety
I think everyone has heard of the attempted bombing of a Northwest
flight last week. The alleged bomber is from Nigeria. We routinely fly
to and from Lagos, Nigeria for DHL. Though we have no indication anyone
has targeted cargo aircraft in general, or our aircraft in particular,
we are conducting a thorough review of our operations there. It appears
we are doing everything we should be doing to ensure the Safety of our
People on the ground there, and to ensure the Safety of our flight
operations. If we find issues that need attention, we will deal with
them quickly.
Compliance
In compliance this week, let me ask all of you to be careful in your New
Year’s celebrations. New Years Eve is always a tragedy for someone –
don’t let it hurt you. Follow the rules. Don’t drink and drive – and
don’t let your friends and loved ones do it either. Enough said.
Pilot
Severance and our new CBA
We have reached agreement on a new Collective Bargaining Agreement (CBA)
with our pilots union. The new CBA is contingent on our also reaching a
new contract with DHL, but we do have a new pilot contract. In 2008 DHL
agreed to fund a pilot severance and benefit program. With the signing
of the new CBA, DHL has funded the program for our pilots, and we are
paying severance this week to employees who have been out of work for a
long time.
Many People
have worked for a long time to reach a new pilot contract. Bob Gray and
Bob Boja led the effort from the company’s side. Captain Joe Muckle,
First Officer Tim Jewell, Captain Rick Ziebarth, Captain Dave Ross, and
First Officer John Liebenow all played key roles in their work for the
union. These folks and others deserve our thanks for their countless
hours of hard work.
We are
working on a partial implementation of the new CBA. And while I’m
talking about our pilots, I want to recognize the union’s generosity.
The pilots’ union just contributed several thousand dollars to the
Clinton County United Way. They made a large donation, and made it at a
very difficult time for many of our airmen. When you see an ABX Air
pilot, thank them for all they help do around Wilmington.
DHL
Negotiations
Our discussions with DHL continued this week. We have been working with
DHL for some weeks now on an agreement that will replace our current
ACMI agreement when it expires next August. When we conclude
negotiations, we’ll report our results to you.
Rumor
Control
The rumor this week is that DHL has sold the airpark. That is not true.
DHL is still negotiating with state and local officials about the
airpark. They have not sold it.
Another
rumor is that one of our aircraft, N312AA has been sold. That is not
true. We lease 312 – and other aircraft – from ATSG’s CAM subsidiary.
Nothing has changed regarding the ownership of the aircraft, or our
lease of it.
That is all
the news I have for this week. I wish all of you a Safe and peaceful New
Year. If you have any questions or comments, or you need any help at
all, drop me a note. My email address is
john.graber@abxair.com.
John Graber's
INFOline | December 24, 2009
Good evening
ladies and gentlemen. This is John Graber with the ABX Air Infoline for
Christmas Eve, December 24, 2009. I hope this finds everyone doing well
and having a wonderful holiday.
Safety
In Safety this week, I am proud to be able to applaud the efforts of the
leadership teams in our Postal centers. Our Memphis, Dallas and
Indianapolis teams have made great strides forward in Safe operations.
These three facilities are the only sort activities left in our company,
and they have greatly improved their Safety performance in the past few
months. As our 2009 peak operations wind down tonight, it is more than
appropriate to thank everyone in our STC operations for your attention
to Safety – and operational excellence. Thank you all for all you do for
our company and our Customers.
Compliance
This winter marks our first one away from our own hub operations in
Wilmington, and our first without our own organic deice personnel.
Compliance in deicing is simply critical. DHL is using our FAA approved
program in CVG, of course, and using their own personnel, supplemented
by contract deicers from ASIG. Our Manager of Deice Operations, Kent
Stewart, is well known to everyone during deice operations, and Kent is
overseeing our deice operations in CVG. Things are running smoothly, and
I’d ask everyone involved in to maintain your vigilance and keep them
running that way.
DHL
Negotiations
Our discussions with DHL continue. The feedback I get from everyone is
that they want to know more about what is happening in our talks. It
isn’t appropriate to comment beyond telling you that DHL and ABX are
working closely together, and talking often. When we conclude our
negotiations, we’ll report our results to you.
Rumor
Control
The rumor this week was that we are investing heavily in our 767
simulator so we can sell it. That isn’t true. But I can see a couple of
facts that someone could weave into that kind of rumor. We are upgrading
the flight management computers in the simulator to align them with
those used in our freighter fleet. And the CEO of a simulator company in
Miami came to visit recently, wanting to sell us simulator time down
there. We field inquiries about all our simulators from time to time,
but we have no plans to sell our 767.
That is all
the news I have for this week. If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
John Graber's
INFOline |
December 10, 2009
Good morning
ladies and gentlemen. This is John Graber with the ABX Air Infoline for
December 10, 2009. I hope this finds everyone doing well and staying
warm.
Safety
With winter upon us in Ohio, please make sure you are ready to work
Safely in the cold. We’re not running the Wilmington ramp operation, so
we don’t have those risks this year, but everyone has to come to work in
the weather. Make sure you slow down and get here Safely. And for our
flight crews, this will be our first winter operating at the CVG hub.
When the snow falls, things are going to be different. Give yourself the
time you need to adjust to the conditions on the CVG ramp. If you are a
mechanic at one of our northern cities – winter means its time to make
sure you are Safe. If we all pay attention, we can get through the
winter in good shape.
Compliance
In compliance this week, I need your help. Here in Wilmington, we have
an issue with people going into closed buildings. Don’t do that. There
is no reason for anyone to be exploring our closed facilities. We find
lights on and doors open. That wastes money and causes extra work for
our maintenance department - and it is dangerous. If you are alone in a
building and you hurt yourself, it could be a long time before we find
you. Please don’t go poking around in places you don’t belong.
DHL
Negotiations
We are still working with DHL to define what happens after our AMCI
agreement expires next August. As you know, Joe Hete, Quint Turner and I
met with DHL in Bonn, Germany last month. We met again this month in
Miami, and our meetings are continuing. When they conclude, we’ll report
our results to you.
TNT
Flying
You’ve heard me talk for years about the importance of our diversifying
into ACMI charter flying. We have enjoyed some success in the ACMI
marketplace – but today I have a different outcome to report to you. We
have given TNT notice that we will stop flying from New York City across
the Atlantic Ocean for them. We’ve been supporting the TNT network and
other customers on that route through a block space agreement, or BSA.
BSAs lower customers’ costs by allowing several shippers to share a
freighter’s capacity. We started this flying intending to use TNT as the
foundation to grow our business both across the Atlantic, and in Europe.
Our efforts have not worked for us for several reasons. First, the
economy has reduced demand for lift across the Atlantic, pressuring
freight rates, and reducing our revenue. And second, our crew costs have
been much higher than they should have been. This doesn’t mean the end
of our ACMI business, of course. We fly a lot of ACMI business, but we
can’t fly if we aren’t going to make money, and that’s what has happened
here.
Management Surveys
If you’re a member of our leadership team, please complete our
management survey. You’ll have an email in your Inbox asking for your
participation. Hearing what our leadership team thinks is always
important – but especially so now, given all the changes we’ve put our
business through. Take the survey, take the time to make the comments
you think are important, and tell us what we need to know. Thank you.
Tuition
Reimbursement for 2010
We are not going to be able to extend our Tuition Reimbursement Program
in 2010. The economic environment we face requires that we watch what we
spend very carefully, and continuing the program into the New Year is
not prudent. We will honor the commitments we made for your pre-approved
classes completed prior to Dec. 31, 2009.
That is all
the news I have for this week. If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
John Graber's
INFOline | November 26, 2009
Good morning
ladies and gentlemen. This is John Graber with the ABX Air INFOline for
Thanksgiving Day, November 26, 2009. I hope this finds everyone doing
well and having a good holiday.
Safety
In Safety, we’ve now had exposure to the flu in our workplace in
Wilmington, and I want to remind everyone to take the appropriate steps
to protect yourself and those around you. Take the advice of the Centers
for Disease Control and Prevention. Wash your hands with warm water and
soap, and do that often; cover your mouth when you cough, and get a flu
vaccine. We are making hand sanitizer available everywhere in our
system. If you need it, use it. And if you do get the flu, stay home and
take care of yourself.
DHL
Negotiations
Joe Hete, Quint Turner, and I went to Bonn, Germany recently to meet
with senior DHL leaders. We discussed what will happen after our ACMI
agreement expires next August. We met for two full days in Germany, and
DHL sent some of their folks to Wilmington this week, where we’ve
continued talks. I understand there are a lot of rumors swirling about
all this. Part of my job is to dispel rumors, but all I can say today,
is that it isn’t appropriate to say more about where we are, except that
DHL and ABX Air are meeting. We are talking about what follows when our
ACMI agreement ends. As soon as we have something more to report, we’ll
tell you. In the meantime, don’t listen to the rumors. It does no good.
Shoes in
Lagos
ABX Air has done a lot of good in Nigeria. Many of you donated boots and
shoes for the folks who work our flights in Lagos. We delivered those
shoes Monday, November 9th. The Nigerian recipients were very
appreciative and wanted to make sure everyone here heard their thanks.
Our John Chiaffitelli and Fasiel Flash played a big part in getting the
shoes delivered.
Thanksgiving
On this Thanksgiving Day, I want to thank all of you for all you’ve done
for our company and each other this year. For all the problems we’ve had
to face, the fact of the matter is that ABX Air is still here, and
poised to grow. We could not do that without the hard work, dedication
and professionalism of our people. Thank you for all you do, and for the
way you do it. I wish all of you and your families all the best.
Rumor
Control
In rumor control this week is the rumor that DHL has asked us to
dedicate all our freighters to DHL flying. That rumor is not true. DHL
is interested in transitioning to an all freighter fleet – one without
PC aircraft – as soon as possible.
That is all
the news I have for this week. If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
John Starkovich's
INFOline | November 19, 2009
Good
afternoon. This is John Starkovich, Vice President of Human Resources
with the INFOline for November 19, 2009.
ATSG
Third Quarter 2009 Financial Results
Last Friday, ATSG
announced its financial results for the 3rd quarter with revenues of
$174.2 million and pre-tax earnings of $4.6 million from continuing
operations. Consolidated net earnings were $3.7 million for the 3rd
quarter. For the first 9 months of 2009, revenues totaled $573 million
and net earnings from continuing operations were $17.9 million. This
compares to revenue of $684.7 million for the same period in 2008 with
net earnings of $6.3 million.
Pilot
Negotiations
On Tuesday, November 17, 2009, the APA Teamsters Local 1224 advised that
the Tentative Collective Bargaining Agreement reached on November 5th
was ratified by the pilots. The ratification was an essential step in
forging a new commercial agreement with our largest customer DHL. As you
all know, ABX was notified by DHL that it did not intend to renew the
currently effective acmi agreement beyond August 15, 2010.
The new
collective bargaining agreement is contingent upon certain assurances
and commitments from DHL that are required for both the union and ABX
Air prior to being able to sign the agreement even though it has
completed the union required step of ratification by the pilot group.
Open
Enrollment for Health Care Benefits
Many people are
asking about the annual benefits open enrollment. Plans are in the
process of being finalized for the 2010 benefits program. The annual
enrollment period is expected to open soon. Open enrollment materials
will be mailed to your home address as soon as they are available.
Reminders
-
Please
keep out of unoccupied and closed buildings on the airport property.
Express authorization to enter closed buildings must be obtained from
Gary Stover, VP of AEFS and arrangements can then be made for you to
be accompanied by AEFS personnel. There are no exceptions to this
directive and appropriate steps will be taken for any non-compliance.
-
We are
asking everyone to be cooperative and patient when going through the
security check points on base. Security guards are acting upon
instructions. Failure to cooperate and to follow established procedure
may result in local law enforcement being called in. If you are being
asked by Security to do something that you feel to be inappropriate,
please remain courteous and request that a supervisor be called &/or
the ABX Corporate Security Manager. You can also comply and report the
incident and circumstances to your own supervisor for follow up
action. Confrontation and/or ignoring the directives of Security is
simply unacceptable. Safety and security is important and your
compliance is required.
-
The Fall
Charity Drive continues. Your participation and generosity to others
that are less fortunate and in need is greatly appreciated. Thank you.
That is all
for this week. On behalf of all of us on the ABX leadership team, please
accept our best wishes for a safe and Happy Thanksgiving. We are
thankful for each of you and all that you do for one another and for ABX.
Take care.
John Starkovich's
INFOline |
November 12, 2009
Good
afternoon. This is John Starkovich, Vice President of Human Resources,
with the INFOline for November 12, 2009.
Pilot
Negotiations
Last Thursday
night/Friday morning, negotiators for ABX Air and the Teamsters Local
1224 reached a tentative agreement on an amended collective bargaining
agreement and the allocation of severance/furlough funds for flight
crewmembers hit by the DHL restructuring. The terms of the agreement are
currently out for a ratification vote by the pilots and the final
results are expected on Nov. 18, 2009. In addition to the ratification
vote, the agreement is contingent upon certain assurances and
commitments from DHL that are required for both the union and ABX Air
prior to being able to sign the agreement should it be ratified by the
pilots.
An
extraordinary amount of time and effort has been spent the last two
months as the parties worked through some very difficult issues in
arriving at an agreement that will help ABX be more competitive in the
marketplace. Many people have been involved during the course of the
negotiations and we appreciate all that has been done. Special thanks go
to Bob Gray and Bob Boja who, in addition to their other duties, took
the lead in working with the 1224 negotiating team to bring the
discussions to this point.
ILN
Airport
Currently many buildings on the airport are no longer occupied. Many
buildings have been closed. This is a reminder to everyone to stay out
of these buildings. This is for safety and business reasons as well as
just plain common sense. With work no longer being performed in these
buildings, there is no reason for anyone to be in them and under no
circumstances should anything be removed from any of these buildings.
Should you
or anyone in your respective departments feel that there is a legitimate
business reason to go inside any of these buildings, express
authorization must be obtained from Gary Stover, Vice President of AEFS
and arrangements can be made for you to be accompanied by AEFS
personnel. There are no exceptions, and appropriate steps will be taken
for any violations of this directive.
Security
We are asking everyone to be cooperative and patient when going through
the security check points on base. Security guards are acting upon
instructions and directions that they have been given to follow and are
doing their jobs. Being courteous to one another is necessary even when
being requested to do something that we may feel to be burdensome.
Fall
Charity Drive
Just a reminder. There is still time to participate in the Fall Charity
Drive. There is no amount that is too small when given to others in need
during this holiday season and throughout the year. It can be done with
a one-time contribution or by payroll deduction. Thank you to those that
are already contributing or have signed up to do so.
ABX
Workforce Downsizing
Regrettably, earlier this week over 50 ABX employees were notified that
their positions at ABX were being eliminated. As ABX continues to deal
with the restructuring that has occurred at its largest customer, DHL,
and the current economic conditions, it became evident that further
adjustments were needed here at ABX as well. Those notified were given a
December 31 termination date.
Cafeteria
For many years, the ABX employees have enjoyed having AVI provide
on-base facilities for a hot lunch with a variety of menu items beyond
vending machine fare. Please consider using the cafeteria when you
decide to buy lunch. Absent having enough customers, we could lose AVI
and the convenience of a lunch facility on site.
That is all
for this week. Take care.
Scott Glasser's
INFOline | November 3, 2009
Hello. This
is Scott Glasser, Vice President of Business Development, and this is
the INFOline update for Nov. 3, 2009. In this update I will address the
non-DHL business.
Europe
In Europe we continue to operate the North Atlantic flight. Although
loads continue to climb, we are challenged with the increase in fuel
price and handling costs. Yields continue to be below our operating
costs.
In Brussels we have
added Leipzig to the Brussels-Lagos flight. This flight is scheduled to
operate through March of next year. We are working with our customer to
extend it further. We continue to get several charter requests in the EU
and hope to utilize the Liege aircraft in its down days, Sunday
afternoons and Monday mornings.
Americas
In LA we are working on an
extension to our Mexico operating aircraft. The customer has requested
an extension for an additional year. We hope to have this in place
shortly. The West Coast operation is going well.
In Miami we continue
to struggle with the low rates in the market. With fuel prices on the
increase we have begun to raise our rates as the 767 becomes more
attractive, given its fuel efficiency. We have already increased charter
requests and will do the same for long-term contracts as they come up
for renewal.
Crew Scheduling
Crewing for flights and picking up open time continue to be a struggle.
We are working on a few ad hoc charters and completed one this weekend
between CVG and Long Beach, moving aircraft engines for a new customer.
As we enter the fourth quarter, we'll be asking our employees to work
additional ad hoc charters. Please be aware that this is an important
time for our company and our business; it will take the cooperation of
all of us to make it a successful one.
Also be aware that
even though we celebrate certain holidays such as Thanksgiving, these
are not internationally recognized holidays, and many of our flights
will operate on normal schedules during these times.
Postal Operations
On the USPS STC front, we have secured the Dallas annex again this year.
We have been contracted by the US Postal Service to operate this
seasonal facility for the last four years. Memphis and Indy will see the
planned increases in seasonal volumes. I am confident that we will be
successful again this year, given our experienced management and crew at
these facilities.
Thank You
As employees of ABX, thank you for all you do in making our business
both successful and safe.
John Graber's
INFOline | October 29, 2009
Good morning ladies and gentlemen. This is John Graber with the ABX Air
Infoline for October 29, 2009. I hope you are all doing well.
Safety
Fall weather is upon us now, and we’ve had several days of rainy
weather. The good news – and that’s all I have – is that we’ve made it
through the rain without injury or incident. That is a good job, and I
thank you all for the hard work it takes to run our company Safely
during times of inclement weather.
Pilot
Negotiations
Your company and our pilots’ union have been at the negotiating for over
a month, hammering out the final details of a new contract. Everyone
hears the rumors that we are very close to a deal. I think that is true,
and I think the work everyone is doing here at the tail of the process
is important, and difficult. Everyone at the table is working in good
faith to reach a deal, and when they do, we will report that agreement
as quickly as possible.
UPS
Results
UPS reported its third-quarter results last week. I mention that here
because UPS is the largest express operator in the country. Last quarter
their revenues fell 15%. Their operating profit was down 43%. UPS said
their average daily package volumes – air and ground – fell 5%. Analysts
said UPS’ results reflect the ongoing weakness in our economy.
Beth
Huber
Tomorrow is Beth Huber’s last day with ABX Air. Beth’s been here over
two decades, and is leaving from her role as our leader of community
affairs. We have said goodbye to many, many good People over the last 18
months. You all know that. I want to note Beth’s leaving because she has
been a tremendous help to me in my time here. Restructuring our company
has been a very hard job, and a huge part of that job has been getting
the right thing said the right way at the right time. Much of the credit
for our being able to do that goes to Beth. She has been an honest,
unyielding, advocate for our People and our company. She has steered us
in the right direction time and again. And she will be missed. If you
see Beth around town, please wish her well.
That is all
the news I have for this week. If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
Bob Gray 's
INFOline |
October
22, 2009
This is Bob Gray, Vice President of Safety, Compliance, and Government
Affairs for the October 22, 2009 ABX INFOline.
In early
October, ABX Air successfully completed a comprehensive audit conducted
by SH&E to retain its standing on the IOSA, or International Airline
Transport Association Safety Audit Registry. The International Airline
Transport Association (IATA) represents some 230 airlines in over 120
countries from around the globe. Carrying ninety-three percent of the
world’s international scheduled traffic, IATA members include the
world’s leading passenger and cargo airlines. The IATA Operational
Safety Audit (IOSA) has become the benchmark for global safety
management in airlines The IOSA standards incorporate many requirements
from the International Civil Aviation Organization (ICAO), the FAA, and
other regulatory agencies throughout the world, as well as best
practices from the top airline audit programs in existence today. The
audit areas included Organization, Flight, Operational Control and
Dispatch, Aircraft Engineering and Maintenance, Cabin Operations,
Aircraft Ground Handling, Cargo, and Operational Security.
We continue
to work with our Postal Hub management to provide a safe working
environment for those hub employees. Most recently we have worked to
modify the OSHA required Monthly Safety Training to more closely fit the
exposures at the Postal Hubs. In addition, three new Safety Training
Bulletins have been developed on the safety exposures related to the
Postal Containers. Existing employees have been trained with these, and
these will be used with any new employees to make sure they understand
the hazards associated with these containers.
From an
environmental perspective, our Recycling Program is being restarted.
We're starting the collection and recycling of paper and cardboard.
The CVG
Operation continues to improve. It is important that all of you
currently involved in the CVG operation provide your input regarding any
issues that you feel need to be addressed. DHL has been very responsive
at addressing operational concerns that arise.
The Company
and the Pilot’s Union continue to meet his week in order to hopefully
finalize a Collective Bargaining Agreement. The emphasis has shifted
this week from negotiating the terms of the contract, to agreeing on the
actual language that reflects those terms and that will appear in the
CBA. This is an important part of any negotiations so that future
debates and disagreements regarding the intent of language can be
minimized. The discussions have been very positive and constructive.
That’s all
the information I have to share with you this week. Thank you for you
hard work and dedication to make our Company successful.
John Graber's INFOline | October 15,
2009
Good morning ladies and gentlemen. This is John Graber with the ABX Air
INFOline for October 15, 2009. I hope you are all doing well.
Safety
I’m sure you’ve heard all about the H1N1 flu this year. There is a lot
of information – and misinformation – out about the flu, and how to
avoid it. We’re taking precautions at ABX Air. We’re taking the advice
of the Centers for Disease Control and Prevention, and you will find our
recommendations to protect yourself from illness during this flu season
on our
web site. The best things you can do are all common sense – wash
hands with warm water and soap, and do that often; cover your mouth when
you cough, and get a flu vaccine. We are making hand sanitizer available
everywhere in our system. If you need it, use it. And if you do get the
flu, stay home and take care of yourself. Don’t make your co-workers
sick. There is much more information about the H1N1 flu available at the
Centers for Disease Control and Prevention website. It is
www.cdc.gov.
Compliance
In compliance, you’ve heard me talk about how important it is to follow
the rules. Well, we recently got a letter from the Federal Aviation
Administration telling us we did just that. The letter referred to a
maintenance issue the FAA was investigating from several years ago. An
FAA inspector had alleged that we had broken FAA rules in making a
repair, and the FAA investigated the situation. We cooperated with them
fully. In their recent letter, the FAA, told us we had not done anything
wrong. I always welcome outside scrutiny of our operation. I think it is
a good way to see where we’re doing well, and where we can do better. In
this case, the FAA dug deep into our processes, and found we had done
exactly what we were supposed to.
Pilot
Negotiations
We were scheduled to meet in Washington D.C. this week in front of our
federal mediator for another round of pilot negotiations. However, both
sides felt they could make good progress without the mediator’s help. So
we spent time at the table without the mediator, working on the issues
that remain. I want to thank the folks on both sides of the table.
Getting quickly through these negotiations is very important, and I
appreciate the work everyone is doing.
ABX Air
Business Update
On the ABX Air front, our DHL flight operations in Cincinnati are going
well. Our Customer there is working hard to stabilize its US network
after last summer’s move, and indications are their efforts are paying
off. We continue to provide exemplary service to DHL, running at 100% on
time most nights. If you are part of that effort, please keep up the
good work. It is very important.
Air Cargo
Trends
The International Air Transport Association (IATA) has released August
results for international air traffic. IATA said freight traffic was
down 18.0% year-over-year. That lower traffic volume has been
accompanied by lower yields, which means not only are carriers hauling
less freight, but they are getting lower prices for the freight they do
carry. Making matters worse, fuel prices have risen from their lows
earlier in the year. IATA says this combination of factors produces a
grim profit picture, and IATA believes the global airline industry will
incur an $11 billion loss this year, on top of a $16.8 billion loss last
year.
That is the
world we’re flying our charter services in, so you can see how important
it is that we provide the best, most reliable product at the lowest
possible price. That is how you win in the ACMI freight world.
That is all
the news I have for this week. If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
Scott Glasser 's INFOline |
October 8, 2009
Script unavailable.
John Graber's INFOline |
October 1, 2009
Good morning ladies
and gentlemen. This is John Graber with the ABX Air INFOline for October
1, 2009. We had our first frost warning last night in Wilmington. I hope
you are all ready for the cool weather.
Safety
Do remember the hazards associated with cool weather. I talked about
this in my last message, but it is very important. Plan ahead. Make sure
you have the time you need to do your job Safely as the weather changes.
Compliance
In compliance, I want to congratulate our sister company, AMES. I was
touring their Base Shops facility today with a potential business
partner and noticed Base Shops’ "Time Lost Since the Last Injury" sign.
That is a good statistic, and a better one when you consider that their
business changed entirely in May. Compliance with procedure is a key
component of building a solid Safety record. We’re one of AMES’ largest
Customers, so their compliance record is important to me. It was good to
see them doing what they’re supposed to. As you work here at ABX Air,
make sure you’re doing the same thing.
ABX Air
Business Update
For months you’ve heard me tell you that ABX Air has to get its costs in
line with the marketplace if we are going to succeed as an ACMI carrier.
Hundreds of you have played important roles in our work to restructure
our company. You’ve redesigned your workflow, consolidated, cut the
amount of work we do, and felt the impact of more work and less pay.
In the
last sixteen months we’ve reduced our costs almost everywhere. We’ve
lowered the cost of our executive team by eliminating Senior Vice
President roles, cutting the number of executives we have, and lowering
executive pay. We’ve reduced our costs in aircraft maintenance, in
flight operations management, in ground operations, and in our
administrative organizations. We’ve reduced our material and inventory
and our physical footprint.
One of
our most remarkable changes was in our Air Park Services Department.
That organization has transformed itself from an ABX Air department of
over 1,000 People into a profitable new business of less than a hundred.
ABX Equipment and
Facility Services – AEFS as the new business is known – has a
growing Customer base and formidable internet presence. They’re
competing and winning business all across the country.
Our
charter airline operations, our largest business segment, has not
enjoyed the successes of our other endeavors. The worldwide economy is
pressuring every ACMI freight operator, but it is especially impacting
us, because we have the highest cockpit crew costs of any ACMI carrier
in the world. And though we’ve spent the past 16 months completely
changing every other element of ABX Air’s cost structure, we have yet to
change our pilot costs.
Joe
Hete has been at the table for over ten days of meetings with our pilots
union, working directly to reach agreement on a contract that allows us
to compete in the marketplace. We’re working with a real sense of
urgency because DHL is in its window to decide how it is going to fly
its freight after our contract with them expires next August. Recently
Joe, Quint Turner and I met with senior DHL leaders. DHL is concerned
ABX Air won’t be able to give them a competitive price for our services
going forward because of our high pilot costs – and if they can’t afford
to fly with us, they understand they have to find another provider very
soon. These senior DHL leaders say they want to use us, but that they
cannot afford us at our current flight crew costs.
We
hope to reach agreement with our pilots union very soon, and we need to.
The
Forest and the Trees
I attended the Cargo Facts annual conference in Seattle. Over 100
operators, Customers, and manufacturers gathered for several days of
discussions. And this week all of ATSG’s business leaders came together
with ATSG’s board. We spent hours reviewing how ATSG’s companies are
faring in today’s marketplace, and to work on how we can all do better.
These meetings provided me the opportunity to talk with air cargo
experts, and competitors – and thinking about how we’re doing in the
marketplace.
What I
gathered from my meetings and discussions with experts from all over the
world and from within ATSG, is that we’re on the right path at ABX Air.
It is clear we have to compete on price in the marketplace. All our
major competitors offer service of a similar quality – they must be
considered for any job – so we have to compete on price. In spite of the
horrible economic environment, it is also clear that most of our
competitors are surviving. Some have failed, to be sure, but every one
of the others is surviving because they’ve found a way to exploit some
element of the marketplace and run their business at lower costs. And it
is crystal clear to me that competitors are accelerating their ability
to meet the changing demands of the marketplace. Where track charters
were once the rule, our competitors are moving to the ad hoc arena – and
making money there. Lastly, it is easy to see the difference between our
competitors who are focused on their Customers, and our competitors who
are not. Those with a Customer focus are winning business today. The
others are losing business.
All
those things – lower price, the ability to be a fierce competitor, the
ability to change quickly and focus on our Customers –are the things
we’re trying to do here today. They are the attributes that will make us
successful. Conversely, our inability to compete in these key attributes
will define our failure.
Think
about these things, and help us succeed every day.
AMES
Vacancies
AMES has openings for about 100 People. They are looking for skilled
technicians and support staff, so if you know someone who is looking for
a job, tell them to go to the
AMES web site to
see the specific opportunities.
That
is all the news I have for this week. If you have any questions or
comments, or you need any help at all, drop me a note. My email address
is john.graber@abxair.com.
Jennifer Miesse's Infoline | September
24, 2009
Hello, this is Jennifer Miesse from Human Resources with the ABX Air
INFOline for September 24, 2009.
Safety
Let’s begin with Health and Safety. ABX Air is putting together a
response plan in case this season's flu outbreak is more severe than
usual, but there are things you can do right now to help protect
yourself and others.
-
The first
step in prevention is to practice good hygiene. That means cover your
coughs and sneezes; wash your hands frequently using soap and hot
water or hand sanitizer; periodically wipe down your workspace with
Clorox type wipes (especially in shared work spaces); and last but not
least, take care of yourself. Make sure you get plenty of rest,
exercise, and eat healthy foods.
-
The second
step is to recognize the flu symptoms. These include high fever (over
100 degrees Fahrenheit) or chills, AND cough or sore throat. Other
symptoms may include: runny nose, body aches, headache, tiredness,
diarrhea, or vomiting.
-
And
lastly, don’t spread the flu. If you are sick with flu-like illness,
stay home and take care of yourself. We recommend you stay home for 24
hours after your temperature is normal.
We will
provide flu shots soon at the Healthcare Center, or you may contact your
preferred health care provider. Watch the Communication Centers,
MyABX.com, and this INFOline for more information about our efforts to
keep everyone healthy this flu season.
Customer
News
I have several pieces of good news to pass along related to our charter
customers.
First of
all, I'm pleased to announce that ABX received a renewed contract to
continue our participation in the Civil Reserve Air Fleet (CRAF). This
allows us to keep providing international airlift for the U.S. military,
a responsibility we are proud to undertake.
Secondly,
ABX Air recently flew over a thousand live fish from Barbados to
England, in what may be the largest shipment of live fish ever flown
into the United Kingdom. The trip was chartered by Britain's National
Marine Aquarium in Plymouth. This success is another great example of
how ABX Air can excel by matching our expertise with the needs of the
marketplace.
Thank you to
everyone involved in keeping these customers happy.
Pilot
Negotiation Update
Joe Hete met with union officials in DC again this week on Monday and
Tuesday. Both parties are working hard to complete the collective
bargaining agreement. While no agreement was reached, progress was made.
On Monday,
we also held the third Pilot Information Conference Call. During this
call, hosted by John Graber, negotiation and company updates were
presented and pilots were given the opportunity to ask questions. Select
questions sent in by email were also discussed. These calls and the
pilot information web site have been excellent sources of information on
the status of our pilot negotiations. A transcript and recording of all
three conference calls are available at
www.abxpilotinfo.com, along with the latest company proposals to the
Union.
We look
forward to additional calls and web updates in the next few weeks.
That is all
the news that I have for this week. John Graber will be back on next
week’s INFOline. Thanks and take care!
John Graber's Infoline | September 17, 2009
Good morning ladies and gentlemen. This is
John Graber with the ABX Air INFOline for Sept. 17, 2009. I hope
everyone is doing well.
Safety
Starting with Safety this week, I need you all to pay attention to the
coming cold weather. We’re going to have frost before too long, and
we’re already breaking out warm clothes. Think about what you need in
your car to drive Safely – get the ice scraper out now, and use it.
Think about the extra time you’ll need to get where you’re going, and
make sure you have that time. Pay attention to carbon dioxide hazards
around you. Every Fall someone gets hurt because they didn’t think about
how cold weather changes our routines. Don’t let it happen to you.
Compliance
Think about cold weather in
compliance as well. Give yourself extra time to do the job. Get the help
you need. Don’t use cold weather as an excuse to cut corners.
ABX Air and DHL
We have signed agreements with
DHL to run several broad lines of business for them going forward. We
are going to run the Wilmington Air Park for at least the next year for
DHL, we’re providing them nationwide support for their Ground Support
Equipment, and we’re providing DHL with load planner support in CVG for
at least six months.
Much of this work we did for
DHL under our Hub Services agreement. That agreement expired in August,
and with the new contracts we’ve signed, we’ll continue working ground
support for DHL going forward. These aren’t multi-million dollar
agreements with DHL as we’ve had in the past, but they are examples of
how we’re fighting for business and to save as many ABX Air jobs as
possible.
We’ve kept many of you
waiting before we could post the jobs these contracts cover. It wasn’t
prudent to post positions without a signed contract to support them, but
those jobs are out there now, and we’ll fill them as soon as possible.
Thank you again for your patience waiting for us to finish the contract
process with DHL.
Marketplace News
I’m in Seattle as I write this week’s INFOline, at the annual Cargo
Facts conference. People interested in cargo airlines from all over the
world come to this conference every year to hear the latest developments
in our business.
ATSG was well
represented at the conference, with
ABX Air,
CAM,
LGSTX,
ATI,
AMES and
CCIA all here
working to find new markets and new Customers for our separate
businesses.
This year I was part of a
panel discussion that included senior leaders from FedEx, Delta
Airlines, and Atlas Air. I thought you’d be interested in hearing the
general consensus of the panel on several points.
-
When will the economy
recover?
Everyone agreed that in terms of Gross Domestic Product (GDP), the
worldwide recession has bottomed out, but that the recovery will take
a long time – as long as two years. And there is also agreement that
GDP growth will come faster than job growth, making any recovery for
the workforce later than for the economy in general. That is because
most companies will, at the start of the recovery, produce more with
the People they already have on hand, before they hire more People, so
job creation will lag.
-
If 2007 was a peak year
for the air freight business, how long will it take to get back to
that peak?
The panel said a full recovery of air freight won’t happen earlier
than the last part of 2011.
-
Given the large number
of freighters parked during this downturn, will there be a shortage of
lift when the recovery kicks in?
The panel said there might be a shortage, but that any shortage
would be more because of higher fuel prices that make the economics of
older freighters unworkable in the marketplace.
-
And the panel was asked
if we saw a shift from air freight to other modes of transportation
because of high fuel prices.
Everyone agreed that, particularly in the domestic market, there
was a large shift away from air and into trucks as shippers were
better able to deliver time-definite product.
While I was up in the northwest, I
stopped in to visit a potential Customer for our
AEFS division. We
are working on an opportunity to work with larger, non-airline
Customers, and I think we have a good chance of success. We’ll tell you
more about this opportunity as it firms up.
Amerijet Strike
Early this week Amerijet and its pilots settled on a new contract. That
is important to us because our ABX Air pilots refused to fly our normal
Amerijet business, costing our company hundreds of thousands of dollars
in revenue. Pilot sick calls are costing us millions of dollars this
year, and having normalcy back in Miami is very important to our ability
to operate there.
Pilot Negotiations
Joe Hete met with representatives of our
pilots union again this week as both sides work to reach agreement on a
new pilot contract. I got an email from a pilot who had been told
company leaders had refused to meet with the union. That isn’t true.
That is all the news I have for this
week. If you have any questions or comments, or you need any help at
all, drop me a note. My email address is
john.graber@abxair.com.
Mike Gerdes' Infoline | September 10, 2009
This is Mike Gerdes, VP of Flight Operations with the ABX
Air INFOline for Thursday, September 10, 2009.
Safety
It may still be warm here in Wilmington and other parts of the country,
but we are approaching the cold weather season. For flight operations, a
review of our cold weather procedures is appropriate, as we are flying
to northern destinations. For everyone else, now is a good time to plan
ahead for the first cold evening or night.
Compliance
Last week we had an audit organization in from the International Air
Transport Association conducting our second IOSA operations and Safety
audit. The audit was successful with just a few findings and
observations. One exception was our Dispatch organization, which had no
findings or observations. This is a remarkable achievement. I want to
personally thank Mark Wilt, Jim O’Grady, and the entire dispatch team
for a job well done. Also, thank you to everyone that participated in
the audit and evaluation. It was a time consuming and difficult task to
prepare. Your hard work is recognized in the few findings the audit team
had.
Africa Update
Our flights to Lagos, Nigeria continue. When we first announced this
flying, the contract ran though September. It has now been extended
until the spring of next year. Everyone has been doing an excellent job
supporting and operating these flights for our customer. Your hard work
is paying off with the continuation of this flying.
Loads on these flights have been
excellent, to the point that aircraft are leaving Liege (LGG) at maximum
weights, which has caused some airport noise issues in Belgium. We are
working to solve the noise issues with the timing of our flights, or
some possible reroutes or tech stops to reduce the weight from LGG.
Thank you to everyone that donated or
participated in the shoe donation program. That effort made a difference
to many people in need.
Amerijet Strike
As John Graber mentioned in last week’s INFOline,
the Amerijet pilots are still on strike in Miami. This week, however, we
have word there is an agreement on the table that is going out for a
vote. We may know the results of that vote next week. ABX Air’s flying
for Amerijet does not meet any of the tests for “struck work”. We’ve
flown our Amerijet work for four years. But our crewmembers are being
threatened and intimidated to the point they call in sick rather than
legally fly in Miami. Fortunately we have been able to operate a few of
our scheduled flights because of the dedication of one of our management
crews. It is interesting that information we have from American
Airlines, the largest airline in MIA, is that they never stopped
accepting Amerijet freight on their aircraft, following the same
principle that governs our Amerijet flying. As our line pilots continue
to call in sick for our Miami flying, we are letting down our Miami
Customers and threatening the viability of our Miami base. We continue
to monitor the situation and hope that the strike is resolved before the
damage to us in the Miami marketplace becomes permanent.
Pilot Negotiations
Talks continue between the Company and the pilots union. Information is
being exchanged this week to provide data to help close the remaining
open articles for the collective bargaining agreement. We remain
committed to the process and hope to reach resolution soon. We are
scheduled for mediation in Washington DC September 22-24th.
We did conduct another pilot information
call last week. An update to negotiations was presented with a question
and answer session. We appreciate the response we have received from
line pilots regarding these calls.
That is the INFOline update for this
week. Thank you for your continued professionalism and have a safe week.
John Graber's Infoline |
September 3, 2009
Good morning ladies and gentlemen. This is John Graber
with the ABX Air INFOline for September 3, 2009. School is back in
session in southwest Ohio. I hope everyone had a safe summer. Watch out
for our kids on the street.
Safety
We don’t have as much traffic on the ILN ramp as we have in the past. I
see people starting to get lax about drive lane discipline and speed
limits. If you’re driving on the ramp, please remember that our
procedures have not changed. Follow our rules for ramp Safety.
Compliance
This week we have an Audit Organization in from the International Air
Transport Association conducting our second IOSA operations and Safety
audit. We gained IOSA certification two years ago and are looking to
renew that certification now. An IOSA audit team looks to see if we have
clearly defined how we do things; that we’ve written down those things
that need clear definition, and that we actually follow what we’ve
written down. Given all the changes we’ve made to our business this past
year, having external, fresh eyes looking at what we do and how we do it
now is important. When we hear the results of the audit, I’ll let you
know how we’ve done.
Our quality and operational leaders in
flight, maintenance, Safety, and training have been working hard for a
long time to prepare for this week. Thank you to everyone who has helped
us put our best foot forward.
ABX Air and DHL
We have agreed to support DHL’s Ground Service Equipment in CVG for the
next year. This is one of the biggest contracts our new Airborne
Equipment and Facility Services (AEFS) sub has won. Gary Stover’s
organization has hired supervisors and mechanics who will work in CVG on
DHL’s equipment. We are very close to signing a contract with DHL to
support their Ground Support Equipment at their Outbase locations too.
AEFS will run this contract in support of DHL and employ technicians at
almost every DHL station.
We are still working with DHL to reach an
agreement on running the airpark in Wilmington. They agree that they
want us to do that work for them, but it is taking longer than it should
to reach a signed agreement. Gary Stover’s department has had to delay
posting positions for the airpark while we wait. I know that delay
creates a real worry for some of you who want to know what the jobs that
are available going forward. We are posting those positions this week. I
apologize for the delay.
Marketplace News
The Association of European Airlines reported June cargo traffic down
20.7%, year over year, continuing the pattern of steep year-over-year
declines that began in late 2008. Traffic on the two major trade lanes
shows no signs of recovery, with Europe-North America traffic down 21.8%
and Europe-Asia Pacific traffic down almost 25%.
We are trying to fly ACMI charter in the
teeth of the worst global downturn since the great depression, and these
figures show how hard it is to find freight and fly it profitably today.
Amerijet Strike
As many of you know, the pilots of Amerijet in Miami are on strike.
Amerijet is our largest customer in Miami. They operate their own
airline, and use us as an ACMI carrier. We have flown Amerijet freight
on our aircraft for four years.
The Amerijet pilots are Teamsters, as are
ours, and ABX Air’s pilots’ union president has pledged to support the
strike. Our pilots are calling in sick for Amerijet trips.
The Teamsters are calling all Amerijet
freight “struck work” or “struck freight”. It is not. We are asking our
employees to follow the federal labor law that governs us: the Railway
Labor Act.
When an ABX Air pilot fails to fly what
he or she is legally required to fly, it hurts our customer, but it
hurts us more because we have to pay the pilot and we don’t get any
revenue for the trip. Since the law supports our continuing the flying
we’ve done for years, people are misrepresenting facts and using scare
tactics to pressure our pilots into doing something that is illegal,
subjecting them to disciplinary action. If the situation isn’t resolved
we won’t have the business to keep flying in Miami.
The Amerijet strike hits just as we’re
making real progress on the negotiations front – both with your union
and DHL. We’re trying to stay focused on reaching agreement with our
pilots and with DHL so we can cement a strong future for our company and
our people.
That is all the news I have for this
week. If you have any questions or comments, or you need any help at
all, drop me a note. My email address is
john.graber@abxair.com.
Tammy Voss' Infoline |
August 27, 2009
Hello. This is
Tammy Voss with the ABX Air INFOline for August 27, 2009.
Safety and Compliance
We don't have as much traffic on the ILN ramp as we have in the past,
and some of us are starting to get lax about drive lane discipline. If
you are driving on the ramp, please remember that our procedures have
not changed. Follow our rules for ramp Safety.
If you are working in CVG, please make sure you are
following the driving rules there, too. The CVG ramp is congested during
the operations, and it is still a new environment to many of us. Slow
down and be safe in your operations.
Audits
Earlier this year the Department of Defence conducted an audit of our
operations as they do every other year. The Air Force found that ABX Air
is qualified to continue operating DOD and Civil Reserve Airlift
missions. In summary, we passed the audit.
Passing this audit was never in question, but it was an
important test for us, since it was the first outside audit since we
restructured the airline. Our organization has gone through tremendous
changes during the past year, and there is real value in an independent
expert reviewing our operations. The DOD survey is a particularly good
test.
As part of their review, seasoned inspectors were sent to
ILN for a week. During that time they talked to the FAA professionals
who supervise our operations, flew on our flights, and viewed our
maintenance operations. ABX did not control who the inspectors talked to
or what they reviewed. They had complete access to any flight, simulator
session, operational or training function, area, and any employee they
felt would give them a good view into how we work. The Air Force team
found some things they want us to do differently going forward, but by
and large they are very satisfied with how we run our airline today.
In a few weeks, IOSA International Air Transport
Association will conduct its audit. IOSA is an optional operational
Safety and procedural compliance audit carriers go through every two
years. We started the program two years ago as part of our certification
to fly in Japan. When a carrier is IOSA-certified, it means we need the
same set of Safety and operational requirements as international
airlines all around the world. Like our DOD audit, we don't doubt that
we will pass the IOSA process again. This will be another outside look
at the new airline.
If you are part of our IOSA compliance efforts, thank you
for your work in helping us complete our second IOSA inspection. And if
you worked on the DOD audit, thank you for making that the success that
it was.
Operations
Now we'd like to give you a brief update on operations. Our ABX Air
management team continues to work with DHL to explore how we can serve
them in their new U.S. strategy. DHL notified ABX that it would not be
renewing the existing ACMI agreement when it's initial term expires on
August 15, 2010. DHL continues to indicate a commitment to continue
discussions to replace the existing agreement with a new one that is not
on a cost-plus basis.
We are working with our crewmembers and their union to
reach a new, competitive, collective bargaining agreement, so that we
can put our best foot forward in our discussions with DHL to secure its
business beyond August 2010, and to preserve jobs for our employees.
Last week, Joe Muckle (the Teamster Local 1224 president) and Mike
Gerdes (ABX Air Vice President of Flight Operations) sent out a joint
letter to all crewmembers, agreeing to postpone surpluses and furloughs
for 30 days as both sides work diligently to resolve the differences
remaining in reaching a new collective bargaining agreement.
On Tuesday, August 18, ABX conducted a pilot information
conference call, updating our crewmembers on the current status of the
company and the status of negotiations. Members of the ABX Air
management team also fielded questions from crewmembers. The next pilot
information call is scheduled for Monday, August 31.
Thank you for your time and all that you do for our
company. John Graber will be back with an update to the INFOline next
Thursday.
John Starkovich's Infoline |
August 13 and 20, 2009
Good morning, folks. This is John Starkovich, Vice
President of Human Resources with the INFOline for August 20, 2009.
Retention Bonuses
On Thursday August 14 and Friday August 15,
the long awaited retention bonuses were paid as part of the payroll
checks. Based upon the performance that was provided to DHL, it was well
earned. We want to again thank you and express our appreciation for all
of that you have done to meet and maintain the high level of performance
that we have provided to our largest customer.
CVG Update
DHL advises that the CVG operation is
progressing and improving. While some challenges remain, they feel that
each operation is getting smoother and issues are being resolved. Also,
Jan Woolums was selected from a number of excellent candidates to be the
Director of CVG station operations.
Interim Operations for DHL
With the end of the Hub Services Agreement on
August 15, ABX has entered into an interim agreement with DHL about
providing certain services to DHL between now and September 4. The
services being provided include temporary staffing for the sort
operation and Loadmaster expertise; a number of services here at the
airport in ILN; and supplying the Ground services equipment maintenance
at CVG and other outbase locations. The interim services are to be
provided while we work to conclude agreements with DHL that would cover
contracts for these services on a longer term basis. We will keep you
advised as those agreements and contracts are successfully concluded.
ATSG Second Quarter Earnings
ATSG announced that it earned $8.1 million for the quarter ended June
30, 2009. Revenues decreased by $159.8 million, or 40% from the previous
year due in large part to the reduction in services being provided to
DHL and a reduction in reimbursements for fuel expenses. For the first 6
months of 2009, net income increased to $19.2 million from $3.3 million
in 2008.
ACMI Agreement Developments
Along with the earnings announcement, ATSG advised that it received
notification from DHL regarding the current ACMI agreement. The current
ACMI agreement with DHL continues until August 15, 2010. Under the
agreement, either company is required to notify the other if it does not
intend on renewing the agreement. On August 7, 2009, DHL notified ABX
that it would not be renewing the existing acmi agreement when its
initial term expires on August 15, 2010. DHL did indicate a commitment
to continue discussions to replace the existing agreement with a new one
that is not on a cost-plus basis. We are working with the pilots and
their union to reach a new competitive collective bargaining agreement
so that we can put our best foot forward in discussions with DHL to
secure its business beyond August 15, 2010 and to preserve jobs for our
employees.
Pilot Negotiations
Negotiations with the pilots continue under the direction of the
National Mediation Board, a federal government agency that handles such
matter for airlines and railroads under the Railway Labor Act. The next
session is scheduled for September 22, 23 and 24 in Washington D.C. With
the pilot domiciles at CVG and the opening of a New York domicile along
with the Miami domicile, flight ops has changed like so much other
things here at ABX. To improve communications with the pilot group as
the company negotiates with the pilots union, a website has been set up
at
www.ABXpilotinfo.com. Please visit the site if you want more
information about the negotiations. We have also established Twitter and
Facebook sites. On Tuesday, August 18, the first webcast/conference call
was held with the flight crewmembers and included ABX President John
Graber and other ABX executives as another medium to connect with our
pilots at the three domiciles to answer their questions and provide
information. The next conference call/webcast is scheduled for Monday
August 31, 2009.
That is all for this week. Take care.
Gary Stover 's Infoline |
August 6, 2009
Good morning ladies and gentlemen. This is Gary Stover,
Vice President of Air Park Services, with the ABX Air INFOline for
August 6, 2009.
Air Park Services
Over the past 28 years Air Park Services has provided incredible
service to the operation, to the air park, and to all of the customers
who have moved freight through this facility. This group has worked in
all kinds of weather and an ever-changing environment, and has seen the
scope of work change year after year. I know many of you have been here
years longer than I have, but I am proud of the work you have done and
what Air Park Services stands for today.
As many of you know, building on the
skills of the Air Park Services department, we have initiated a division
of ABX Air called ABX Equipment and Facility Services (AEFS). This
division will replace the former Air Park Services department and is
still part of ABX Air. It will provide some of the same services we
provide today to a variety of customers here at the air park as well as
outside of Wilmington.
Concerning the support of the Ground
Support Equipment at CVG, we are very close to finalizing a contract to
perform these services for DHL. There are still some details that we
need to resolve and plan to have the contract finalized very soon. We
will be posting the Equipment Maintenance Mechanic positions for both
CVG and ILN as soon as the contract is finalized.
We also are working toward a new
agreement with DHL to maintain the air park facilities and property
after the expiration of the Hub and Line Haul Agreement on August 15. At
this point we do not know exactly what this might look like, but as we
do, we will share that information with you.
STAR
We exceeded the July STAR goal of 95 percent
by achieving an on-time service of 95.8 percent.
Please thank your employees for all of the work they did in making this
goal! The payout will be included in August 14 paychecks.
Investor Conference Call
Air Transport Services Group, Inc. will host
an investor conference call on Tuesday, August 11, 2009, at 10:00 a.m.
Eastern daylight time, to review its financial results for the second
quarter and six months ended June 30, 2009.
The Company will release its second
quarter and first half 2009 financial results after the close of the
market on Monday, August 10, 2009. For more details please visit
www.atsginc.com.
Transition Center
Be sure to take advantage of the services
available at the Air Park Transition Center, your co-workers are. Since
our last sort operation more than 500 employees have signed up for FREE
job search and computer skills classes available at the Transition
center. When you come to an orientation you will learn about possible
State funding available for retraining, unemployment experts are
available to answer your questions and the transition center staff are
there to assist in any way possible. Call the transition center at
937-366-2665 or stop by for a visit at 3280 SR73 (bldg. 5). You can find
out more information online at
AirParkTransitionCenter.com.
This is all the news I have for this
week. John Graber will update the INFOline next Thursday. Thank you for
your continued efforts and support of our company.
John Graber's Infoline |
July 30,
2009
Good morning ladies and
gentlemen. This is John Graber with the ABX Air Infoline for July 30,
2009.
Safety
We have about 200 People working in CVG every night for awhile. That is
a new environment for us, with new processes and new procedures. Please
make sure you know how things work, and follow DHL’s procedures in
operating there. Be Safe in everything you do. We have ABX Air
leadership on site every night to help you with any issues you’re
having. Work with them and make sure we’re taking care of you in the
new operation.
Compliance
As the new CVG operation starts, there are hundreds of questions about
how things work there. We’re finding communication to be a real
struggle. After decades of being able to go out to the ramp and solve a
problem, flight and maintenance operations are adjusting to running our
DHL hub based network through a telephone connection.
If you find an issue you don’t understand in the new operation,
remember, you do not have to guess at anything. Ask your
supervisor for help and information. Work through the issue until you
are satisfied you have the right answer. We are much better off
taking a delay and knowing we are compliant, than guessing about
something and making a mistake.
Last night we had a crew notice a problem on the paperwork for a Haz
shipment. When we checked into it, we found a problem and bumped the
freight. That was exactly the right call. Nice job.
Wilmington’s Last Operation
A week ago tonight we operated our last Wilmington sort. Toward the end
of the operation about 400 of us gathered at the end of F Building to
watch ABX Air’s last revenue flight – flight 552 – leave
Wilmington. We had sorters, accountants, executives, dispatchers,
pilots, mechanics, Air Park folks – I saw someone from almost every
work group there for the last departure.
There was the full spectrum of emotion in the group. Some cheered, some
stood quietly – there were tears and hugs, and some even applauded.
Like the last 14 months, that last night was a difficult time.
But weeks ago Jan Woolums and her Ground Department, and Gary Stover and
his Air Park Services department, and Jennifer Miesse and her Employee
Relations Department, had decided that at the end of our operations we
had something to celebrate as much as we had something to mourn. So they
put together a huge carry in the week before our last flight. Hundreds
of People came from every department. They had music, they gave away
prizes, and they had fun. Then they organized smaller carry ins during
our last week, so everyone could gather in their own groups to honor the
occasion in their own way. We handed out commemorative t-shirts to mark
the last operation.
I got to attend almost every event, and in those last two weeks I talked
to hundreds of you. Like every ABX Air carry in, we ate, told stories,
took pictures, and laughed. But this time we were sentimental. This time
we watched the Night Moves movie Ground had put together. This time we
made sure we got email addresses and phone numbers, and this time we
made sure we got to tell our friends how much we appreciated all the
years together, and all we’d shared. I don’t have the years here
most of you do, and I very much appreciate your bringing me into the
fold and sharing your stories.
There is so much wrong when an organization like ours with the amazing
people we have goes through what we’ve all gone through. Many of
our friends have serious, life-changing problems to work through as they
face the end of one career and the uncertainty of what comes next,
making it all the more remarkable how ABX Air’s People rallied
together in the last two weeks. We were able to celebrate the things
that have made this such a great place to work. I heard it over and over
from so many of you – that in spite of all the bad things associated
with the end of huge parts of our company, you were celebrating the
friendships you made here, the time you had with your coworkers, and the
wonderful place ABX Air has been for you.
You are truly an impressive group of People, and you have much to be
proud of.
If you have had to leave ABX Air, let me thank you again for all you
have done for our company over the years. Make sure you are getting the
support you need and everything you have coming to you as you transition
away. If you are not, let me know.
If you are one of our People who are still working here, let me thank
you for all you are doing for us every day. You face huge change and
difficult times. We are still worked toward building a durable ABX Air.
We have a lot of work yet to do, but we have not quit, and we will not
quit.
That is all the news I have for this week. If you have any
questions or comments, or you need any help at all, drop me a note.
My email address is john.graber@abxair.com.
John Graber's Infoline | July 23, 2009
Good morning, ladies and gentlemen.
This is John Graber with the ABX Air INFOline for July 23, 2009.
Tonight’s operation is going to be our last sort in Wilmington. I think
everyone knows that now.
Safety
So starting with Safety, be careful tonight. Take care of yourself and
your buddies. Make sure you leave our last night of sort operations the
way you came to it – healthy. And make sure your co-workers do the same.
Compliance
In the past 14 months our compliance performance has been excellent.
Thank you. Keep that up tonight.
CVG Update
DHL indicates they made significant progress week over week in their
testing of the CVG hub. We spent time with senior DHL leaders this week.
It is clear to me they have a good sense of the challenges they face in
CVG, and they have a plan to overcome those challenges. Ken Allen, who
took over the global DHL Express operation after running the US for a
short time, has put a senior team of strong operational leaders in
charge of DHL Express. They know what they need to do to make CVG and
DHL’s US product a success, and they are working hard to make that
happen.
Those DHL leaders have asked for
many of our folks to continue helping with CVG operations through the
end of July, and of course we’re happy to provide that support.
Performance
In the 420 operational days since DHL’s May 28th announcement we’ve run
98.5% on time, counting the delays we can control. That is an amazing
achievement, but not nearly the whole story. We ran 100% on time Tuesday
of this week, and Monday of this week we had 2 mis-sorts out of over
75,000 pieces sorted. Two. Our goal is 48, a goal we have beaten eight
days in a row. Those numbers are not unusual – since May of last year,
we’ve run 122 days at 99% or better, and 130 days at 100% on time.
DHL Manager, Mark Miller sent us
another measure of your service excellence. He said, "I want to
congratulate the Reload Teams for maintaining focus on performance
through what has been and continues to be a difficult work environment.
Your teams never dropped the ball regarding scanning since these audits
went into effect." Mark pointed to our Reload areas 1, 2, 3 and 13 that
all finished recent audits at 100%.
I cannot overstate the importance
of that kind of performance. When you look back on this time in our
company’s history, you have much to be proud of. Many have worried our
company would go out of business in the past 14 months; you proved them
wrong and delivered excellent Customer service through the most
difficult of times. Experts said no company could withstand the dramatic
restructuring we faced. You not only withstood it, you took it as an
opportunity to redefine almost everything we do, creating a leaner, more
responsive ABX Air.
Wilmington’s Last Operation
Our flight 552 to JFK tonight is the last operational ABX Air system
flight out of Wilmington. Many of you want to see it depart, so we’ve
set aside a gathering place outside the Customs area of Building F,
where A and F buildings meet. If you want to see our last freighter
depart ILN, be there about 5am Friday morning. It will be the end of an
era.
With the closure of our sort
operations, we’ve told many friends and coworkers their jobs at ABX Air
are ending. We sent WARN notices to over 1,000 of our People last week.
If you are losing your job, make sure you know what is coming to you,
and how to get it. We have provided a lot of separation and pay
information in ICOM messages, FYI sheets and material on our website.
Read the information. If you have questions, your supervisor is a good
place to start, as is the Transition Center.
Direct Deposit
I want to urge everyone to sign up for direct deposit. If you sign up by
August 6th, your retention funds will be available to you on payday. If
you don’t have direct deposit, it is possible you will have to wait a
week before a bank lets you access your money.
That is all the news I have for
this week. If you have any questions or comments, or you need any help
at all, drop me a note. My email address is
john.graber@abxair.com.
Bob Gray's Infoline |
July 16, 2009
Hello, this is Vice President of
Regulatory Compliance and Government Affairs, Bob Gray for the July
16th, 2009 ABX Air INFOline.
Sunday July 12th was the first operation
for DHL back at the CVG hub. Many ABX employees were there in Cincinnati
to train, assist, and to provide oversight in effort to support DHL’s
decision to leave Wilmington, and return to CVG. DHL regarded this first
day as an overall success, although there are still some bugs that need
to be worked out of their systems. While it is difficult to be a part of
the closing of ILN, it is very important for the future of ABX to see
that DHL is successful going forward. Because of that, we appreciate
your hard work and support. ABX personnel will continue to support DHL’s
start up during the upcoming weeks. For those of you that are involved
in that, please pay particular attention to your safety and that of
others around you. You are operating in a different environment, on a
ramp with many new employees that may not be familiar with all of the
safety procedures that you practice as second nature. Take that extra
second to look twice, and think carefully about what you are doing
before you act. Nothing should change the safe manner in which you
perform your job. Your safety remains our top priority.
Payroll is preparing to issue severance
checks for those of you that will be leaving us over the next couple of
months. Almost 1/2 of our employees do not have direct deposit.
Employees who receive live checks may not be able to access their money
immediately. Many banks will put a "hold" on these checks until they
clear, and sometimes this could take up to 7 business days. In the case
of some severance checks, you will find it very difficult to cash your
checks if you do not have an established bank account. Places like
Kroger's and Wal-Mart will only cash checks written up to a certain
dollar amount. We strongly encourage all employees to set up direct
deposit into a savings or checking account, which will allow them to
have immediate access to their money. For those employees who do have
live checks issued, remember to be aware of your surroundings when
cashing a large check.
Direct Deposit forms should be submitted
to Payroll by July 29. August 6 is the final deadline. Forms are
available in the form bin in Payroll or online at MyABX.com.
The mediation process for the pilot
union’s collective bargaining agreement continued last week in
Washington D.C., with representatives from the Company, the Union, and
the International Brotherhood of Teamsters meeting with the Federal
Mediator in hopes of coming closer to an agreement. I participate in
these talks because I have been involved in the negotiations process for
the past 24 years, over four separate Collective Bargaining Agreements.
The Company’s goal is to provide ABX with the ability to not only
compete in our new ACMI environment, but to also be competitive in
maintaining, and possibly even obtaining additional flying for DHL in
the future. Unfortunately, we made little progress during this round of
negotiations.
The union negotiating committee continues
to hold open the contract for items such as changes to the grievance
procedure, and protection for pilots who take excessive sick days while
on reserve. The two major disagreements appear to relate to pay, and the
distribution of the $75 million dollars committed by DHL, to be
allocated for severance and other pilot related issues.
Regarding the $75 million issue, the
company believes that the pilots should get a severance, similar to the
benefit our other employees get, even though severance is not part of
the benefit package the Union has negotiated for during collective
bargaining, in any of their past contracts. Regardless, President John
Graber approached DHL over a year ago about negotiating for money to
address the needs of the pilots that would be losing their jobs during
the DHL restructuring. Human Resources Vice President John Starkovich
negotiated a $75 million dollar package, part of which would go towards
severance, and part of which would go towards funding the Pilot’s
Pension fund, with the only stipulation being that the parties must
agree on the conditions under which the money is released. Since the
negotiations with the union for the distribution of that money began, we
have seen numerous shifts in positions on the part of the Union
negotiating committee. At one time the Union proposed $60,000 severance
to each crewmember severed, and $45 Million going towards the pilot’s
pension fund. A later union proposal would have called for an average of
over $110,000, or 45 weeks of pay be provided to any pilot who was
severed, retired, or had already left voluntarily to take another job.
The company has offered the Union a
market competitive collective bargaining agreement, along with the same
severance package that has been provided to all of the other employees
of ABX, with the rest of the $75 million going immediately into the
Pilot’s pension fund. This offer has been rejected. We remain in
negotiations over this issue, and are hopeful that an agreement can be
reached.
The second major issue is pilot pay.
Currently, ABX pilots are one of the top three or four highly paid
pilots groups in the world. This fact, in addition to the low level of
scheduling productivity our current agreement creates, often eliminates
ABX as a serious competitor in the ACMI market. Looking forward, our
high crew costs will also make us undesirable to DHL in comparison to
the other airlines that might operate for them in the future. The Union
did agree to certain productivity enhancements which the company asked
for, however, they are unwilling to agree to any pay reduction. Current
base pay, before any overtime pay, for a 767 Captain is about $187,000;
the company is proposing an adjustment to $160,000. While no one at ABX
likes cuts, it is necessary to reduce costs so that we can successfully
compete in the ACMI market. Today ABX costs remain too high to compete
without a reduction in pilot salaries.
The parties meet again with the mediator
in September in Washington.
One of the many changes that is taking
place at ABX is in Air Park Services. They will continue to maintain the
Air Park after the August 15th expiration of the Hub Services Agreement
with DHL, although the scope of work will be at a much smaller scale.
Building on the expertise of the individuals in that department, we have
initiated a division of ABX which will be known as ABX Equipment and
Facility Services, or AEFS. Unlike the MRO, this division will still be
part of ABX Air, and not a separate company. As such, employees who
continue jobs through AEFS will keep their current ABX Air benefits,
such as existing vacation and accrual rates, sick time balances, and
Company Seniority. Severance and Retention will be treated consistent
with all other employees that remain at ABX. Those who remain employees
of ABX do not receive Severance, since they are not separating from the
Company. Retention Pay will be paid out regardless if you elect to stay
or separate from ABX, as explained in prior communications.
Right now, the last scheduled ILN
departure for an ABX aircraft will be Friday, July 24th. For many of
you, this will represent an ending to a career. While ABX and DHL have
worked to ease the financial impact through the retention and severance
packages that have been offered, it is still an emotional time for all
of you. You have played a large part in the building of one of the
finest airlines in the world, and nothing I can say in this recording
can really come close to thanking you for your time, effort, and long
hours in making that happen.
For those that are left, you face the
tasks involved in continuing on. Sometimes it is easy to look at our
current situation and feel discouraged, or worry that it might be
impossible to succeed, given all the work that has to be done, and with
fewer people to do it. For those of you, I suggest you look at our
history.
On April 30th, 1985 our scheduled fleet
consisted of 14 DC-9s, and 10 YS-11s. Twenty-four total aircraft. Those
of you that were around then remember well the feeling of "all the work
that has to be done, and not enough people to do it." Yet, somehow, we
did. Luckily, many of us that were involved in getting it done in 1985
are still here today… albeit with a little, or in some cases, a lot less
hair, and a lot more wrinkles. If you ever wonder if ABX can thrive and
grow given the current situation, history has told us that it can. It’s
up to all of you to see that it does.
We thank you for your continued efforts
during the upcoming weeks, and remember to keep yourselves safe.
John Graber's Infoline | July 9, 2009
Good morning ladies and gentlemen. This
is John Graber with the ABX Air INFOline for July 9, 2009. I hope
everyone had a safe 4th of July. I delayed this Infoline by one day so
our leadership staff could talk to their People about DHL’s plans going
forward. I’ll talk about that in a minute.
Safety & Compliance
I’m going to combine my Safety and Compliance notes this week and ask
everyone to pay special attention to our ramp operations. This week we
damaged an aircraft with a K loader, and could have easily hurt someone.
There were lots of People around when we gouged a guardrail into the
side of a jet, but it didn’t matter – we still made the mistake.
This year we’ve made great strides in
ramp Safety – but incidents like this one set us back. Keep your head in
the game; take care of yourself and your buddies on the ramp. The rules
are easy – follow the rules. They’ll keep you Safe.
DHL News
Today I am able to confirm for you DHL’s plans for the end of operations
in Wilmington. I’ll cover the information with you at a fairly high
level today. Tomorrow we’ll follow this up with more in-depth material
and formal handouts you can take home and share with your family.
On Tuesday DHL confirmed their plans for
us. They plan for July 23rd to be the last day of sort and flight
operations in Wilmington. Aircraft will fly into Wilmington that
Thursday night. After more than 28 years, we’ll run our last sort
operation, and dispatch the last network flights out of Wilmington.
As you know, DHL is testing their CVG
systems on Sunday July 12th, and Sunday, July 19th. If things look good
on the 19th, DHL will make the call to move to CVG on the 24th. If
things don’t go smoothly, DHL could slide the move a week. If that
happens, we’ll continue Wilmington operations until July 30th.
If you work in Ground or Airpark, here is
what you need to know: If you have not volunteered for the August
retention program, July 23rd is the last day we would ask you to work if
DHL’s plans work out. If you are part of the August program, the last
day we would have you work is August 28th.
I’ve thrown a lot of dates at you, so let
me recap the high points: DHL plans July 23rd to be their last
Wilmington operation. If they slide the schedule, they’ll do it a week
at a time. The last day we might require a sorter or Airpark technician
to work is July 30th or August 28th, depending on whether you signed up
for the August retention program.
We will have written guidance about all
this out very quickly, and we’ll follow that up with meetings in the
next two weeks. We’ll cover pay dates, severance, retention, and
transition programs – everything you need to know if you are losing your
job.
Hundreds of our people have told me about
the exceptional job we’ve done in taking care of the thousands of our
friends and coworkers who have had to leave us this past year. We’ll
make sure we take the same care of you.
It is worth noting that nothing I’ve just
told you is new – we’ve all known this was coming – we just weren’t sure
when. Now we know. Now you can plan.
And, I’d suggest, you can reflect for a
minute. The end of our operation is truly the end of an era. For over 29
years Midwest, Airborne and ABX Air moved freight out of Wilmington. For
over 29 years we’ve built a family here. We’ve built lots of them. We’ve
come to know and rely on each other, creating a most remarkable
corporate culture. That culture allowed us to build one of the best
reliability and customer service records in the world. We have much to
be proud of in what we’ve done here.
We’re not through.
In Ground Department Town Hall meetings
this week, several people asked me what ABX Air would look like after
the sort was gone. We’re going to look very different, obviously, but we
are going to be here. ABX Air still has a business. There have been
times this past year when many doubted that. There is little doubt
anymore.
Remember last year, when we built a new
flight plan for our company? Well in spite of all turbulence we’ve
faced, we’re executing on that plan. We’ve had to adjust, had to make
changes, but we are still tracking to the same destination – we’re still
on course to a strong, viable airline. ABX Air is leaner today, but more
capable. We move faster than we used to; with a sharper focus. We fly a
great platform for charter freight. And once we have competitive costs –
especially competitive pilot costs – we will be a formidable presence in
the air cargo marketplace.
ETOPS
Last week the FAA approved our ETOPS application. ETOPS is
Extended-range Twin-engine Operational Performance Standards. It allows
us to fly our 767s farther from land, on shorter routes across an ocean.
Without ETOPS on today’s New York to Liege flight, we’d be in the air
eight hours. With ETOPS, the flight is six hours and thirty-two minutes.
ETOPS is a huge accomplishment, one that makes us more competitive
across the north Atlantic. Thanks to all of you who worked so hard to
make this new capability a reality.
Rumors
The rumor I heard this week is that DHL might bring their domestic sort
operations back to Wilmington in the future. They aren’t going to do
that. Most rumors have a kernel of truth in them somewhere – this one
breaks that rule. DHL won’t come back here once they move to CVG.
The FedEx rumor is back. There is no
warehouse full of purple paint on base, and FedEx has not been here
looking around our facility. FedEx has spent millions on their
Indianapolis hub, just minutes away from Wilmington by air. There is no
reason for them to operate from here.
That is all the news I have for this
week. Please make sure you talk to your leaders about DHL schedule
information in the next couple of days. Make sure you know what is
happening, and how it impacts you.
If you have any questions or comments, or
you need any help at all, drop me a note. My email address is
john.graber@abxair.com.
Terry
Scherz' Infoline |
July 2, 2009
Good morning, ladies and gentlemen. This is Terry Scherz
from Aircraft Maintenance with the ABX INFOline for July 2, 2009.
Safety
I am pleased to announce that recently our own Bob Gray, Vice
President of Regulatory Compliance and Governmental Affairs, and the
rest of the Commercial Aviation Safety Team--which is made up of a
select group of industry experts--were nationally recognized with the
prestigious Collier Trophy. This is a very distinguished honor, which
recognizes achievement in America regarding improvements in safety and
efficiency of commercial airline operations.
Bob will be the first to tell you that safety is a team
effort and needs to be our number one priority at ABX Air all the time.
Watch out for each other and yourself, and always follow safe workplace
practices.
Awards
While I am on awards, ABX Air recently received an Award of Excellence
in the Air Carrier category from the readers of Air Cargo World
magazine.
We were evaluated on factors such as customer service,
performance, value, and information technology. This would not have been
possible without the skill and dedication of all of you on the ABX Air
team.
ETOPS
Just this week, we received FAA approval of our ETOPS program.
During the past several months or more, many of you may have heard
someone discussing ETOPS but were not exactly sure what it meant. The
acronym ETOPS stands for extended range operations with two-engine
airplanes.
Back in the early 1950's, twin-engine aircraft were not
nearly as reliable as the modern airlines flown today, and the FAA
imposed restrictions on twin-engine airplanes, limiting them to routes
within one hour of an adequate airport. As aircraft (especially engines)
became more reliable, the FAA rules were revised to allow for specially
equipped aircraft flown by operators with enhanced procedures to fly a
farther distance from a suitable airport.
This became much more important to ABX Air when we
started flying from the U.S. to Europe. Without an approved ETOPS
program, we would have to take a much longer route. The significance to
being approved by the FAA to fly ETOPS is that ABX Air will be more
efficient and competitive flying across the Atlantic Ocean without
compromising safety.
During the grueling several-month certification effort
we were required to write new, enhanced procedures both in Flight and
Aircraft Maintenance that met FAA ETOPS requirements. Flight crews
received enhanced training. And then we needed to demonstrate to the FAA
that ABX Air had the professionalism and discipline to safely operate
the aircraft under ETOPS rules.
A special thanks to all of you directly involved in this
important effort. A job well done.
Flight Operations
We continue to meet with our flight crews to successfully negotiate
a new contract. Tuesday of next week we are scheduled to be back at the
table in Washington, D.C.
DHL Transition
Plans continue for DHL's transition of the hub sorting operation at CVG.
The projected completion date remains August 1.
Air Park Transition Center
The Transition Center remains available to all eligible employees. This
is an extremely valuable and useful resource that will be of benefit to
you. Please, if you have not already, check it out.
Retention
Eligible ABX Air full-time and part-time employees will receive their
retention checks on August 14. Your retention payment will be included
in your regular paycheck. This check will include your wages for the two
weeks from July 24 through August 9. Your retention payment will be
included as an additional amount.
For every full month that you were employed in an
eligible full-time or part-time position from July 2008 to July 2009,
you will receive two weeks of pay. If you have been in an eligible
position the whole time, that means 26 weeks of pay. That is a big
amount, and there are things you need to know about how the payment is
being handled so you know what to expect. Ask your supervisor for
information we've prepared about your retention.
ABX is not qualified to provide advice about investments
or tax consequences, but we do want to provide you with basic
information you need. Look for the information we published covering
these basics. [Edit: This information is contained in
issue 20 and
issue 21 of For Your Information.]
This is all the news I have for this week. I hope the
ETOPS explanation didn't bore you. John Graber will update the INFOline
next Thursday. Thank you for your continued efforts and support of our
company. Have a safe and enjoyable Fourth of July weekend.
John Graber's Infoline | June 25, 2009
Good morning ladies and gentlemen. This
is John Graber with the ABX Air INFOline for June 25, 2009. I hope you
are all enjoying our summer weather and staying cool.
Safety
In Safety this week I want to remind everyone to stay hydrated in the
hot weather. Some of us will succumb to a heat injury this summer – an
ABX Air employee went to the hospital this week in distress. She is all
right, but she had an uncomfortable night. You can keep that from
happening to you. Take care of yourself by using smart techniques to
work in the heat.
Compliance
Most of you know the stickler I am about compliance. I think it is easy
to follow the rules, and I know following the rules keeps us Safe, and
is the best way to an efficient, consistent product. I watch compliance
indicators every day.
One of those indicators to me is the
training we’ve been doing on our ramp. Since the 15th, we’ve had DHL
folks up from CVG, training them in ramp operations. And we’ve been
doing a heck of a job. We’ve provided excellent support, taking good
care of those People and our business. I want to echo something Jan
Woolums said in last week’s Infoline – it is not only what you do, but
how you do it. Our ramp personnel are doing it just right, and I thank
you for that.
Excellence
I’m proud to share with you that Air Cargo World magazine awarded ABX
Air the Award of Excellence as an Air Carrier. Air Cargo World asked its
readers to evaluate airlines and airports on four measures – Customer
service, performance, value and information technology. Our airline was
given very high marks by our peers, our Customers, and industry experts.
Working day in and day out, it is easy to
lose sight of the excellent product we provide the marketplace. It is
gratifying to see our hard work recognized by our peers. This award is a
direct result of the dedication and hard work of every ABX Air employee,
and would be noteworthy in normal times. Winning the award now – with
all the changes we’re making in our business – is truly exceptional.
Thank you all for the part you played in
this achievement.
ETOPS
As I write this INFOline, we are in the midst of
proving runs for ETOPS operations over the north Atlantic. ETOPS stands
for Extended-range Twin-engine Operational Performance Standards, and is
a special authorization from the FAA that allows two engined airplanes
to fly over water more than 60 minutes from an airport.
We’re flying over the north Atlantic
almost every day now, and without ETOPS authority, our 767s have to fly
longer routes, farther north, to stay within 60 minutes of diversionary
airports in Iceland and Greenland. That creates extra flight time, and
added expense. Once we can fly under ETOPS, we’ll start flying 120
minutes from those airports, and when we prove we can safely do that,
we’ll join most airlines and fly 180 minutes out.
Flying ETOPS means we’ve had to build
special flight and maintenance procedures, extra training, and put
special equipment on some of our jets. The FAA tells us our application
for ETOPS was one of the best they’d ever seen. Thank you to everyone in
our Flight and Maintenance departments who worked so hard over the past
few months to make this new capability a reality.
AMES
AMES has its first 727 in the barn for a heavy check now, a CCIA
aircraft. And the new MRO has contracted for its first 737 – both less
than two months into AMES’ life. The 727 and 737 are new fleet types for
the business, and are great examples of AMES’ ability to diversify its
product base in the extremely competitive MRO marketplace.
Rumors
I heard a rumor from a pilot this week that our flying into Lagos,
Nigeria may end in the fall. That is true. Our contract with DHL to fly
from Belgium to Lagos only runs into September. While it is possible the
flying can be extended, we don’t have a contract past September, but
that is not a change, it was the business arrangement from the start.
Contracting for only several months of
flying is a common practice in the ACMI cargo marketplace. We will see
more flying like this as our ACMI line of flying expands.
That is all the news I have for this
week. Drop me a note with any questions or comments you have. My email
address is john.graber@abxair.com.
Jan Woolum's Infoline | June 18, 2009
Good morning everyone,
this is Jan Woolums with the ABX Air Infoline for June 18, 2009. I hope
everyone is doing well and ready for the summer.
Safety
Now more than ever it is
important to make sure you’re working safely. With summer comes
additional activities; with our children out of school, graduation
parties, or planning a family vacation, in addition we will be faced
with several challenges and changes in the upcoming weeks. ABX Air
leaders are confident in our ability to maintain the outstanding results
recorded in the last few months on safety and compliance. I would like
to take this opportunity to recognize Mike Vilvens and the Haz sort team
for remaining injury and accident free for one year. This type of
accomplishment can only be achieved by paying attention to the detail
and truly has to be a team effort.
Compliance
Congratulations to
everyone in the ILN operation for their continued dedication to quality.
Since 2008 Quality Audit scores have improved from 94.7% to a score of
97.4% at the end of first quarter 2009. These are remarkable
improvements at a time of many distractions and uncertainties for the
future of our company and employees.
One of the areas that have
shown excellent results for three consecutive years is Bruce Cunningham
and the Hotline team. They have been 100% compliant in both quality and
safety. Excellent Job!
Retention
Let me take a moment to
answer some of your questions regarding retention payment. The retention
payout for eligible employees is planned for the first pay period in
August. The pay will be calculated using the employee’s rate of pay
effective on February 23, 2009. It will be two weeks of pay for every
month employed since July 2008, up to maximum of 26 weeks pay.
The retention payout will
be added to the bi-weekly pay and will be taxed according to the
exemptions you have on file. You may want to contact your tax consultant
about possible changes to your withholdings or other tax planning issues
related to this additional income. If you need to change your tax
withholdings or sign up for direct deposit, the forms are on myabx.com
and will need to be into payroll by August 6th, 2009. The
retention payout is not eligible for 401(k) deductions.
DHL Updates
We have equipment moving
to CVG weekly. This is excess equipment and doesn’t impact our ability
to run a safe and productive operation here in ILN. The first test
operation in CVG is still on track for Sunday, July 12th,
with the second test on Sunday July 19th. If all goes as
plan, the transition to CVG will occur on Friday, July 24th.
DHL has asked ABX to
assist with their transition to CVG by providing ramp and sort employees
to support the start up of the CVG operation. Last week we asked for
volunteers from the ABX Air ground employees to assist, and have
received an overwhelming response. Again thank you for your support.
On Monday night, June 15th
ramp crews from DHL started On-The-Job training here in ILN with our ABX
Air ramp crews. We also have DHL employees training on forklifts in our
Non Con area. This proved to be very successful thanks to Scott Cloud,
Chuck Sexton, Steve Green, and our dedicated ramp crews on their well
executed plan.
Air Park Transition Center
I would like to remind you
to check out the Air Park Transition Center, located in Building 5. To
date we have had over 3,300 impacted employees who have taken advantage
of the programs offered. Stop in and talk to one of our representatives
or give them a call at 937-366-2665.
In Closing
It’s not only what you
do but also how you do it. Please, stay
focused, stay safe and take care of
each other.
That is all the news I
have this week, John Graber will be back next Thursday.
John Graber's
Infoline | June 11, 2009
Good morning ladies and gentlemen. This
is John Graber with the ABX Air INFOline for June 11, 2009. I hope you
are all enjoying our summer weather.
Safety
In Safety this week, I get to congratulate several areas for excellent
performance – in May our Letters, Reloads, Primary and Secondary areas
in our Ground Department posted no OSHA recordable accidents for the
second month in a row. That is simply a great job, and it shows what is
possible when we pay attention to Safety and procedure every day. Thank
you to everyone who worked so hard to turn in those results. Please keep
up the good work.
I want to thank everyone for your
compliance in cross-walk Safety. When we closed the Employee Welcome
Center several weeks ago, everyone had to start walking across taxiway
C. We tightened up our Safety procedures then, and you have all done a
nice job of helping us follow the new rules. I very much appreciate it.
Compliance
This week we have auditors from the Air Force visiting us. Lieutenant
Colonel Gerry Hinderberger and Master Sergeant Scott Padgett are with us
all week. If you see them around the base, please make them feel
welcome.
They are here as part of our
participation in the Civil Reserve Air Fleet, or CRAF. CRAF is a
long-standing program in which the US Department of Defense uses civil
carriers to augment military airlift all over the world. To be in CRAF,
a carrier has to pass audits every two years. The auditors are looking
at our Safety and Compliance practices. They will look at how we plan,
control and conduct airline flight and maintenance operations, and
report back to Air Force leadership at Scott Air Force base in Illinois.
This is our third visit from Air Force
auditors as part of our participation in CRAF.
DHL’s Move
We are working very closely with DHL’s operational leaders to ensure a
smooth transition between Wilmington and Cincinnati. The identifier for
the Cincinnati airport is CVG. There is much to do between now and the
move, planned for sometime in July or August. Jan Woolums and Jim
O’Grady are working with key DHL leaders to make sure ABX Air meets its
goals in supporting the move.
All large airlines run large hubs miles
away from their headquarters, but we haven’t done it on this scale yet.
To support CVG, we’re creating an ABX Air CVG Operations leadership
team. Our Director of CVG Operations, a new role for us, will run the
ABX Air show in Cincinnati. Supporting the director, we’ll have flight
operations, maintenance operations, Safety and audit functions, as well
as administrative support.
As part of the CVG move, we are obviously
making changes in our flight and maintenance operations. We will move
all our domestic DHL flight operations to CVG this summer, opening a
flight crew domicile there. And we’re transitioning maintenance line
operations from ABX Air in Wilmington to AMES in CVG. These kinds of
changes create many issues for the People involved. We’re working hard
with DHL to smooth out as many of the issues as we can.
New Crew Base
We are also opening a new flight crew domicile at the Kennedy Airport in
New York City. The base will primarily support our international charter
flying. Flight Operations announced the new JFK base and our new CVG
base in a letter to crewmembers yesterday. With the eventual closure of
Wilmington, we would have three crew bases – MIA, JFK and CVG.
DHL Jobs
Some of our folks have applied for jobs with DHL. If DHL hires you to
work for them, we will do everything we can to support a smooth
transition between ABX Air and DHL. Some of you received letters from
DHL recently, and you have questions about how a transition would work.
Please talk to your supervisors or our HR organization, and we’ll work
through the issues with you one on one.
ATSG Stock Regains Compliance with
NASDAQ Rules
Last week the NASDAQ stock exchange informed ATSG, our parent company,
that ATSG’s stock again complies with a stock exchange rule to be above
a dollar a share.
You may remember last September, when the
price of a share of ATSG stock fell below a dollar. When it stayed below
a dollar for thirty days, the stock failed to comply with a stock
exchange rule, and after a period of time, might have been de-listed.
Many big investors, like financial institutions, will not buy stock in
companies for less than a dollar a share.
In the last two months ATSG stock has
increased in value. Yesterday the stock closed at over two-dollars a
share.
AMES
On June 4th, AMES, the new ATSG MRO, had been open for a month. AMES is
doing a great job of working for ABX Air, and I want to take this
opportunity to thank our AMES partners for all they are doing for our
airline. In its first month, AMES kicked out its first heavy check – the
first 757 heavy check ever performed in Wilmington.
There are bumps in the road as we grow
and mature with our new maintenance provider, but if the first month is
any indication of what AMES will do, there is much to be proud of in the
new company.
That is all the news I have for this
week. Thank you all for all you are doing for our Company. Please help
us continue the good work we’re doing in Safety and Compliance.
Drop me a note with any questions or
comments you have. My email address is
john.graber@abxair.com.
Jennifer Miesse's
Infoline | June 4, 2009
Hello, this is Jennifer Miesse from Human
Resources with the ABX Air INFOline for June 4, 2009.
Safety
Temperatures are rising throughout the US as summer quickly approaches.
Please be sure to keep hydrated and watch out for heat exhaustion.
I have been asked to remind everyone who
must cross taxiway C in ILN to continue to be alert and cautious while
crossing the taxiway. Remember to stay in the walkways and follow the
lighted “walk” and “don’t walk” signs. We cannot afford to become
complacent to these safety precautions.
Compliance
Moving on to Compliance, I want to congratulate Scott Grooms and his
ramp team from the Ground department for another 100% score on their 2nd
quarter quality audit. We have had several 100% scores, but very few
back to back, repeated 100% scores. Congratulations and excellent job!
People
We have several great “People” stories to report this week. Last Friday,
we recognized several ABX Air employees for their extraordinary efforts
in establishing the Airpark Transition Center. It was amazing to see how
employees from several different departments pulled together to get the
Transition Center up and running successfully. Congratulations to all
who received a letter of recognition and to Debbie Loveless, Mary Ellen
Diersing, and Eric Salyers for receiving the silver Wings of Excellence
for their excellent leadership of the Transition Center team.
I would also like to congratulate Phil
Flowers, Diane Hibbett, Jeff Smart and Jim Hobart on receiving their
Bachelor’s degrees from Embry Riddle Aeronautical University. All four
took classes while continuing to work full-time at ABX. And all four
graduated summa cum laude with a GPA greater than 3.9. That is quite an
accomplishment and something they should all be very proud of!
As John discussed in last week’s infoline,
it has been one incredibly difficult year for ABX and our People. Our
EAP counselors are reporting that many of our employees are struggling
with clinical depression. Lingering stress and sadness can affect every
aspect of life including the way we eat, sleep, work, and interact with
others. Depression is not a sign of weakness and it is no one’s fault.
Some of the common signs of depression
are:
-
Constant feelings of sadness,
hopelessness, or emptiness
-
Loss of interest in activities once
enjoyed
-
Feelings of worthlessness or guilt
-
Trouble remembering, concentrating or
making decisions
-
Fatigue or loss of energy
-
Weight gain or loss that is not on
purpose
-
Worry, apprehension, restlessness, or
agitation
-
Irritability, impatience, or
frustration
-
Thoughts of death or suicide
There is effective treatment for
depression. Please help us make sure everyone gets the help they need.
Talk to your coworkers if you think they are in trouble, remind them
they can arrange a private, confidential consultation with a
professional counselor at the ABX Air Healthcare Center or they can call
1-800-888-2998 for a referral to a local counselor.
DHL Transition Update
Lastly, I would like to give a quick update on DHL’s transition to CVG.
As previously communicated, DHL plans to run their first test operation
in CVG on Sunday, July 12th, and their second test operation on Sunday,
July 19th. If everything goes well, DHL plans to start their full
operation in CVG on Friday, July 24th.
DHL has asked for sort and ramp
assistance in CVG during their test operations and possibly through
August. Additional information will be provided to all sort and ramp
Ground employees starting Friday night.
That is all the news that I have for this
week. John Graber will be back on next week’s Infoline. Thanks and take
care of yourself and those around you!
John Graber's
Infoline | May 28, 2009
Good morning ladies and gentlemen. This
is John Graber with the ABX Air INFOline for May 28, 2009.
As I record our INFOline today, I am of
course struck by the date--one year ago today DHL announced its plans to
move away from us. Twelve months ago.
You all know the myriad issues we’ve
worked our way through this past year. Frankly, it is hard for me to
fathom all that we have done. This has been a sobering time of wrenching
change, but the fact is the People of ABX Air have much to be proud of.
Looking back at the year behind us, it would be easy to dwell on what we
used to be. I think it is better to look at what we’ve done. When I look
back, it is with a great deal of pride in how our ABX Air team has
played the hand we were dealt.
Two things come to mind when I think
about what our team has done in the last year; first is that we have
been successful, and second that we have taken good care of our People,
our Customers and our business. Have we made mistakes? Sure. Are there
things I wish we could take back? You bet.
But in the past year we’ve done amazing
things. Important to me is that we’ve improved the Safety of our
operation. We’ve reduced the frequency of our OSHA reportable incidents
33 percent--a third-–in the last year. If you go back four years for
this measure, we are a full 52 percent better than we used to be-–that
means we’ve cut our OSHA reportable events more than half. And in lost
time injuries, we’re 42 percent better than we were a year ago.
We’ve run 99 percent on time for 363
operational days since May 28 of last year. That 99 percent number is
for DHL service, and the factors we can control. But if we look at all
delays and all P1 arrivals-–we’re running 95 percent on time. In our
quality efforts, we’ve had over 12 perfect 100 percent scores on monthly
or quarterly quality audits since last May.
The significance of these performance
figures is that we put them on the board while we were closing huge
chunks of our business, parking an entire fleet, and making dramatic
changes in our operational and support structures. The significance of
this performance is that, in the face of bad news and enormous change,
we have taken care of our business and we have taken care of each other.
In the last year we’ve faced
unprecedented challenges to our business. We are meeting the challenges
we face. We’ve accelerated our business cycle and our decision cycle.
We’re learning to move with an efficiency, speed, and agility we did not
have 12 months ago. We are smaller, but we are faster. We continue to
adjust to the new reality around us. We’ve redesigned our businesses; we
are advancing the plan we built last June. We are diversifying and
growing AEFS. We have spun off AMES, and our service delights our
Customers.
I’m not trying to minimize the challenges
in front of us. We are flying freight through the worst economic
downturn in a generation. We face the same margin pressure our
competitors do. We have a pilot cost structure that doesn’t work, and
neither side in our pilot negotiations is satisfied with our progress.
And we have eliminated thousands of jobs, putting friends and neighbors
on the street, and damaging our corporate climate and community.
In the grind of day-to-day work, it is
often hard to know what things look like in the big picture. What I can
tell you today, 12 months after many wrote us off for dead, is that not
only is ABX Air alive and well, we are growing our business again. We
are getting stronger, and we have a future.
Thank you all for all you
are doing for our Company. Drop me a note with any questions or comments
you have. My email address is
john.graber@abxair.com.
Tammy Voss'
Infoline | May 21, 2009
Hello, this is Tammy Voss
with the ABX Air INFOline for May 21, 2009.
Safety
Now more than ever it is
important that we focus on Safety. Each day we are challenged by the
flurry of activity and, for many of us, new job responsibilities. We
cannot allow these challenges to distract us. We must continue to make
Safety a priority.
Compliance
For the past six months, Greg
Gear's ramp group has achieved 100 percent on their quality audits.
These are fantastic results, and we appreciate the attention to detail
and the hard work it took to achieve them. Congratulations!
Please Note
On Tuesday, May 26, the
Wilmington Police Department will be on site at the air park for a
training exercise from 11:30 a.m. to 1 p.m. The training exercise will
occur inside D Building around the D17 area. Employees should remain
away from the area until the exercise is completed. The exercise will
include the use of authentic-looking weapons that fire non-lethal
pellets, so do not be alarmed if you see them in the area.
Air Park Transition
Center
Fidelity Investments workshops
will be held on Friday, May 29 at 9 a.m. and 11 a.m. in Building 2 in
Wilmington. Please contact the Air Park Transition Center at (937)
366-2004 to sign up. The workshop, Deciding What to Do With Your
Retirement Plan Assets, is provided at no charge as part of the Air Park
Transition Center. Spouses are welcome and encouraged to attend. Please
let us know if there will be two people attending when you sign up.
DHL Update
We'd like to update you on the status of the DHL operations. Our ABX
management team continues to work with DHL to explore how we can serve
them in their new US strategy. On Sunday, May 18, we began operating the
DHL 767 Brussels, Belgium to Lagos, Nigeria flight. Terry Wilkin (ABX
Loss Prevention), John Vestal (System Chief Pilot), and Steve 'Bubba'
Page (Line Pilot), conducted an on-site security review in Nigeria in
preparation for the new operation. We would like to thank everyone who
have worked so hard to make this operation a success.
As previously discussed,
DHL plans to begin operations at CVG on July 24. In preparation, DHL
began training its new employees at Wilmington on May 18. ABX is
currently operating two buses from CVG to ILN each night. ABX and DHL
have relocated approximately 349 pieces of ground support equipment to
CVG.
DHL continues to focus on
filling over 800 positions. Interviews will be conducted at CVG through
June 23. Positions being filled are international service agents,
part-time package handlers, and full-time ramp positions. Benefits
include medical, vision, dental, life insurance, 401(k), pension, short-
and long-term disability, paid time off, tuition assistance and employee
discounts.
As always, our ABX
leadership is focused on minimizing the impact and hardships to all ABX
employees. We thank you for your time and all that you do for our
company.
John Graber will be back
with an update to the INFOline next Thursday.
John Graber's
Infoline | May 14, 2009
Good morning, ladies and
gentlemen. This is John Graber with the ABX Air INFOline for May 14,
2009.
Safety
Starting with Safety this morning, I am proud to congratulate several
areas for excellent performance. Our Primary, Secondary, Letters,
Reloads and Transportation areas all reported no lost time incidents in
April. Thank you to everyone who worked so hard to turn in that kind of
performance, and take such good care of each other.
It is important to
remember that when we talk about lost time, we’re talking about hurting
our People-–and when we go a month without someone getting hurt at work,
that really is something to be proud of. Let’s make it two months.
We are pushing everyone to
abide by the crosswalks on our taxiway. For years now many of you have
walked across our ramps wherever you wanted. I need you to change your
ways and stay in the crosswalks. We have new airlines operating here
now–-and with new airlines come new crewmembers. That raises the chance
that a pilot won’t see someone on the ground. Keeping to the crosswalks
will keep you Safe.
Compliance
I am happy to report that A and F reloads, and our Autosort Primary and
Secondary areas turned in perfect 100 percent scores on their second
quarter Quality Audits. What great work that is. Thank you.
As I talk about
compliance, I do have to tell you that I am still not satisfied with our
performance on our ILN ramp. I still see people driving too fast, and
moving out of drive lanes when they don’t have to. Slow down, and drive
your vehicles in the lanes. Our procedures are there for a
reason--compliance is not optional. When you drive one of our vehicles
on our ramp, you follow our procedures.
DHL Update
DHL is moving its hub operation from Wilmington to Cincinnati. We’ve
known that for a few weeks now, and received official notification from
DHL this week.
Today we briefed the ABX
Air leadership team on the transition schedule as we understand it. Your
managers will cover everything with you in the next day or so, but I’ll
hit some of the high points here.
Keep in mind that we’re
over 60 days away from the move, so things can change a lot. We’ll tell
you those changes as we know them.
To start with,
DHL is interviewing in Cincinnati until June 23. Ask your manager
for the specific schedule. DHL has recruited in Wilmington twice. If you
missed one of those events, your best bet now is to interview in
Cincinnati.
DHL has hired some number
of new employees in CVG, and is going to start training them here in
Wilmington starting Monday, May 18. When you see these new people, treat
them well. Remember, none of these new people have anything to do with
DHL leaving us. They’re just trying to work for a living. You need to
treat them the way you would want to be treated if you were in their
shoes. The fact of the matter is that we want DHL to succeed in its
business, and for DHL to succeed, these new people have to succeed. Help
them do that.
At some point in July, DHL
will move its Sunday operations to CVG as a way to practice and test the
new sort. They’ll need some of our People to work down there on a couple
of Sundays. We’ll ask for volunteers, and pay them for the bus ride down
and the time they work. This schedule means we won’t work on some
Sundays in Wilmington. That has an impact on lots of things in our
operation. Look to your leaders for more information.
We’ve asked People to commit to being available to work in August.
DHL will pay our People who commit to being here in August four weeks
retention, whether they work or not. If you want that retention, sign up
before the 15th, and be available to work in August. We are still
working through lots of details about how this will work and we’ll get
specific information to you as soon as we know it.
Appel Meeting
Joe Hete and I met with Deutsche Post DHL’s CEO, Frank Appel, and DHL’s
CEO, Ken Allen, this week. We had a wide-ranging discussion. We spent
time making sure Frank understood how much good work ABX Air has done
for DHL, and that ABX Air stands ready to work with DHL today and in the
future. DHL has yet to share its long-term plans with us. Obviously we
want to be a part of those plans if we can.
AMES Progress
Our sister company,
Airborne Maintenance and Engineering Services, opened May 4 on
schedule. ABX Air transferred our FAR § 145 certificate to AMES. Hitting
a start date on the money is a huge accomplishment. When you see someone
who was involved in standing up AMES, thank them for their hard work.
Less than two weeks in
business, and AMES is on pace to deliver its first heavy check aircraft
next week--ahead of schedule. A company’s first delivery is always
significant, and this one especially so because AMES’ first aircraft is
a 757--the first 75 heavy check ever in Wilmington. That will make it a
lot easier for AMES to get a second one.
Rumors
I don’t have any rumors to talk about this week, and that is all the
news I have today. Tammy Voss will update the INFOline next Thursday.
Thank you all for all you
are doing for our Company. Drop me a note with any questions or comments
you have. My email address is
john.graber@abxair.com.
Mike Gerdes'
Infoline | May 7, 2009
This is Mike Gerdes, Vice
President of Flight Operations, with the ABX Air INFOline for May 7,
2009.
Safety
Congratulations for some outstanding results from Scott Cloud's ramp
folks. They have been at a score 100 percent since the start of the
year. That’s all of the first quarter and the second quarter to date.
Thanks to all of you for your efforts and well done.
This week, the Safety
Department ran a drill of our Emergency Response Program. In this drill,
a mock accident was developed and, without any advanced notice, the
emergency response plan was activated. This is done to test our system
to ensure the required personnel are notified and our response plan is
put in place quickly and efficiently. This plan generally is used for an
aircraft incident or accident. The reports from the drill were very
good. There are always a few areas for improvement, so we are all
working on revising our procedures as required.
Flight Operations had a
meeting with the Pilots Union Safety Committee two weeks ago. It was an
informative meeting, and we all learned something. One item really hit
home with me that applies to everyone. If you see a safety problem,
please report it. Use any means available, but don’t assume it will be
taken care of or that someone else will report it. Take the time and
report the situation or issue. If it is not fixed, report it again. We
take all issues seriously, but we need your help to identify the
problems and to make sure the solutions put in place are working. I’d
like to thank the Union Committee for meeting with us, and their
commitment to meet with us on a regular basis to make sure all safety
related items are addressed in a timely manner.
DHL
As announced a few weeks ago, DHL intends to move their operation from
ILN to CVG in July or August 2009. ABX Air will remain responsible for
continuing our operation until their transition is complete. To ensure
adequate staffing throughout their transition, DHL has agreed to an
August Retention Plan for ABX Air employees. The August retention will
be available to all ABX Air employees who are eligible for the current
retention program provided you commit to work and be available to work
through the month of August. If you commit now to work (and work if
needed) for the month of August, you will receive an additional four (4)
weeks of retention pay. To participate, complete an August Retention
Commitment Form and give it to your manager by Friday, May 15, 2009.
Managers will be distributing these forms this week.
We have been meeting with
DHL management to establish a Cincinnati transition plan. These plans
include the transition flight schedule, facilities ABX Air requires, and
services to be provided. No firm dates have been established at this
point, except that DHL intends to make the transition in July or August
as previously announced.
DHL has conducted two
sessions of walk-in interviews for ABX employees who were interested in
working at their CVG hub. We had 71 employees show interest in the
positions as sort/ramp employees. We will work one-on-one with the
employees that are offered the position on a release date. Interviews
continue for ground/ramp employees in Cincinnati on Tuesdays.
The Employee Welcome
Center (EWC) closed permanently on May 5. All employees who previously
utilized the EWC to access the base now have been assigned to one of
three security gates near the Administration building. Access to the
base through gates not assigned to an individual is not permitted. The
points of access for employees are the 1005 gate, Administration Gate 2
and 3. Parking is available near those locations.
Once on base, many
employees must cross taxiway C. Use extreme caution and follow the
lighted walk and don’t walk signs located by the approved walkways.
Never cross when the “don’t walk” sign is illuminated. Cross only when
the “walk” sign is illuminated. Be alert and cautious as aircraft do not
have good visibility directly in front of the aircraft and the pilots
will not see pedestrians crossing in front of them. Always look both
ways and take personal responsibility for your safety. Additional
information is available on the employee web site.
On Monday, May 18th, DHL
employees from Cincinnati will begin ramp and ground training here at
the Wilmington Gateway. This training will help ensure a smooth
transition for our customer. If you have any questions on this program,
please contact your supervisor.
Flight Operations
In Flight Operations news, members of the Union and Company negotiating
teams meet in the National Mediation Board offices this week in
Washington, DC. We are scheduled to meet again next week as well. We
continue to discuss articles in the Collective Bargaining Agreement as
well as Severance/Retirement issues and are hoping to make progress
during these talks in Washington.
On May 16, we begin a new
charter route for DHL from Brussels, Belgium to Lagos, Nigeria. This
flight operates round trips, covering six days per week. We are excited
about this new opportunity, and we intend to demonstrate to DHL our
ability to operate for them in the worldwide environment. We are working
with local security companies to provide secure transportation and
lodging for our crews in Lagos, and we appreciate the insights and
suggestions our crewmembers and the Union have provided. We will ensure
our employees are safe, both in terms of the flight operations and while
on the ground.
Finally, to all the moms
out there, Happy Mother’s Day. For everyone else, don’t forget to
recognize your mom on her special day.
That is all for this week.
Be safe, take care of each other, and thanks for calling.
Todd France's
Infoline |
April 30, 2009
Good morning ladies and
gentlemen. This is Todd France, Senior Director of Ground Operations
with the ABX Air INFOline for April 30, 2009.
Safety
This past week many areas celebrated perfect first quarter results with
no safety incidents within their work areas. I’d like to again say
congratulations to those areas for their commitment to a safe work
environment. Great job!
Recently, a concern was
voiced on the wrong type of stairs being placed for the flight crews to
utilize at our freighter aircraft. Mike Gerdes, Vice President of Flight
Operations, wanted to thank the Ground Department for responding in a
timely manner to these concerns brought by the Flight Department. Mike
also indicated that aircraft stairs are also being looked at other
locations, not just here in ILN.
As you’re aware, we
continue to increase the number of employees that are utilizing the
Admin 2 and 1005 entry gates to gain access to the base. As a result, we
have more employees walking across the ramp to get to their assigned
work areas. I’d like to take a moment to ensure everyone is aware of
some of the policies and regulations when crossing the ramp:
-
Employees cannot cross
the blue AOA lines onto the ramp without an AOA badge and reflective
gear (when applicable). Employees must walk across the C taxiline
within the cross walk, which is in between the blue AOA lines.
-
Also please pay close
attention to the WALK/DO NOT WALK sign at the beginning of the ramp.
When the DO NOT WALK sign lights up, employees or vehicles cannot move
across the C taxi lane, until replaced with the WALK indicator. If the
DO NOT WALK sign comes on while walking across the taxi way, the
employee should NOT panic, but simply increase the speed to move
safely across the taxiway or toward the closest safe point. As with
walking across the street, be sure to check traffic flow from both
directions prior to moving across the C taxi lane.
-
Last but not least, when
exiting buildings on the base, employees should following the length
of the building, keeping inside the blue AOA line, and not cut
diagonally across the B ramp to reach the cross walk.
Compliance
I’d like to congratulate the reload sort areas within the Ground
Department who scored a perfect 100 percent on their second quarter
quality audit. Great job. Keep up the good work. As I told Regina,
you’re truly making a difference!
People
DHL will hold recruiting sessions here in Wilmington for ABX Air
employees who would like to work for DHL once they move their operation
to CVG, which is targeted for the end of the summer. Interviews will be
held the evenings of Thursday, April 30 and Monday, May 4 at the Air
Park Transition Center in Building 5. The events begin at 6 p.m. and
last two hours. Each session is limited to the first 80 applicants.
Based on turnout at these two sessions, we will work with DHL to hold
more recruiting sessions here in Wilmington if required.
Third shift positions
being filled are International Service Agents, part-time package
handlers and full-time ramp positions. Benefits include medical, vision,
dental, Life Insurance, 401k, pension, short and long term disability,
paid time off, tuition assistance, and employee discounts.
ABX Air Reorganization
As you’re aware, the new MRO, AMES, is on track and opening up this
Monday, May 4. Unfortunately, there are a large number of ABX employees
who will have their last days of service with ABX over the next couple
of days. To those employees that are leaving us we thank you for all
your years of service and wish you the best of luck in your future
endeavors.
DHL’s Plans for the
Future
We continue to work with DHL leaders to understand their plans for the
CVG transition. Look forward to updates and answers to your questions
regarding the transition coming in the near future.
That is all the news I
have for this week. We’ll update the INFOnfoline again next Thursday.
Thank you all for all you
are doing for our Company. Feel free to drop John a note with any
questions or comments you have. His email address is
John.Graber@abxair.com.
Be safe and take care.
John Starkovich's Infoline |
April 23, 2009
Good afternoon folks. This
is John Starkovich, Vice President of Human Resources with the ABX Air
INFOline for April 23, 2009.
Safety
Would like to start off
with safety because it is important and because some recognition is in
order for certain groups.
First, congratulations to
the Haz employees working in the Ground Department. We want to
congratulate you for no recordables for 3 months. Thank you for the
great effort.
Similar congratulations to
the folks in Base Shops. They hit 270 accident-free days. That’s 3
quarters with no accidents, which is simply fantastic. Many thanks for a
great effort.
The last item of Safety is
to remind folks to drive carefully and safely on the ramp. With
everything that is going on here at ABX, understandably we often find
ourselves pre-occupied and not paying as much attention as we should
when it comes to practicing good driving etiquette and safety on the
airport so we must make the effort to do so.
Safety is serious. We want
everyone to go home every day without an injury and we need you to make
that happen by looking out for yourself and your fellow employees.
New Business
Good news about some
new flying that ABX will be doing for DHL across the Atlantic. We
are going to be flying from Brussels, Belgium to Lagos, Nigeria. It
is scheduled to start up on May 15 and is a four month arrangement.
There are many details yet to be worked out. We are happy to have
the business and the opportunity to preserve jobs for our pilots. In past
INFOlines we have talked about the closing of the Employee Welcome
Center. Toward that end, the motor pool has been relocated to the area
between buildings C & D. There is currently an issue with having the
badge security system operable at one of the gate locations which is
being worked by DHL. May 4 is the goal. AMES, the new MRO, is
in full hiring mode. They have filled approximately 214 positions so
far. We also want to take the opportunity to welcome Daniel Boggs
who is the Director of Heavy Maintenance and comes to AMES from AAR. DHL’s CVG Facility
We have been advised by
DHL that they are putting out ads and starting the hiring process for
the positions in CVG. The current sessions are scheduled for every
Tuesday beginning April 21 through June 23, 2009, with no session on May
26. There are two time periods on each day with one from noon to 3 p.m.
and a second from 5:30 to 8:30 p.m. Each session is limited to the first
100 participants. Interviews and drug screens will be done. You will
need a driver's license or other state picture ID as well as to provide
10 years of work and home address history. If you do not bring these
items with you, then you will not be allowed to participate. The
sessions are at the Cincinnati Airport Marriott, 2395 Progress Drive,
Hebron, KY 41048. We will request DHL to do an interview session here at ILN and will keep you advised.
That is all for today’s
info line. Many thanks for the great job that you continue to do for
ABX.
Take care.
John Graber's
Infoline | April 16, 2009
Good morning ladies and
gentlemen. This is John Graber with the ABX Air INFOline for April 16th,
2009.
Safety
In the last 30 days we have had two accidents on our Wilmington ramp. In
the first, a tug and an aircraft fuel truck collided. In the second, a
van hit an aircraft fuel truck. In both cases vehicles moved in front of
the fuel trucks, causing the accidents. No one was hurt in either event,
but that was just dumb luck.
I’ve asked our Safety
organization to review the accidents and define the root causes, and
make sure we tell everyone what happened and why, but in the meantime,
I’ll tell you how to prevent ramp accidents – follow our procedures. Be
careful. Respect the ramp environment when you’re out there.
There is a very real
difference between doing things quickly and rushing. When you work with
a deliberate purpose, when you operate as quickly as conditions allow
you to work Safely, you’re doing your job. When you’re rushing, not
paying attention, and violating our procedures, you let everyone down.
All of us need to pay attention on the ramp.
I’ve asked our Safety and
Security organizations to help me reinforce Safe and standard ramp
driving practices. If someone stops you on the ramp, they’re doing what
I’ve told them to do. Listen to what they have to say. They’re trying to
keep you Safe.
In better Safety news,
Safety Coordinator John Kindrick reports that our Haz Sort organization
did not have an OSHA recordable accident for the entire first quarter.
That is simply outstanding. Great work. This is our fourth organization
to end the quarter with this kind of performance. Thank you to everyone
in Haz Sort for your hard work and professionalism. Safety isn’t easy,
and I very much appreciate your dedication to the cause.
Operations
I have more perfect operational performance to report this week. Our
Transportation organization under Dean Beckett and our Ramp organization
under Greg Gear both scored a perfect 100% in their first quarter
quality audits. Thank those folks and their organizations for their hard
work and dedication. What a great job.
ABX Air Reorganization
By the end of this week we will have finished communicating ABX Air’s
restructuring plans. Most of those plans take affect May 4. You may
remember, these are the organizational changes we announced during our
Hangar Talks in March. We said then that we needed to lower our costs
and increase the efficiency of our airline-related business. That’s what
we’re implementing now.
If you work in Flight
Operations, Maintenance and Engineering, Purchasing, IT, Safety, Finance
or Accounting, you should know what your part of our business looks like
going forward. If you don’t, talk to your department head and they’ll
give you the information you need. We want you to have all the
information we can give you about your future here, and we want you to
have it as soon as possible.
All of these changes
create stress in everyone, and we all handle that stress in different
ways. If you need help, we want to provide it. Our Employee Assistance
Counselor is available twenty-four hours a day at (800) 888-2998, and
Dr. Richard Mague, a counselor, is here today and tomorrow. You can get
in touch with him in the large break room in building 1005, from eight
to four both days.
Help us take care of you
and our coworkers.
Wilmington Changes
We are still working on how to reduce our Wilmington footprint. We’ve
moved the motor pool, and are in the process of moving out of the
Employee Welcome Center. That transition will be complete this month.
For our office workers, we
are still evaluating where we will consolidate our offices. The
administration building and building two are the main candidates. We
will start moving sometime in May.
Global Freight Reports
You know that we have stopped flying in Asia, and closed our Osaka,
Japan base. Japan Airlines recently reported its February international
cargo volume – they reported it down 39% year over year. That kind of
decline highlights why our Customer, All Nippon, stopped flying us in
Asia.
Retention Money
Deferrals
One of our folks asked me if we can defer part of his retention payment
until next year so he won’t have to pay income taxes on the entire
amount this year. I checked with our tax expert, and we cannot do that.
The IRS has a rule that says income becomes taxable on the earliest date
the employee has a right to it. I very much appreciate the idea, and
welcome yours, but we can’t make this one work.
Rumors
I need you to pay special attention to this rumor this week.
The rumor is that ABX
Air’s profit sharing plan is out of money. This comes from one of our
folks who is looking for places to roll over his 401k plan. He said a
local financial person told him that ABX has borrowed all the money in
our profit sharing plan and has no way to pay it back.
That is not true – and it
is not true on every level. First, the ABX Air profit sharing plan is
sound. Second, ABX Air has not, and cannot, borrow those funds. The Bank
of New York/Mellon maintains ABX Air’s profit sharing funds in a trust.
Your profit sharing funds are intact.
I am very worried that
some unscrupulous person is trying to take advantage of you by spreading
this kind of inaccurate information, trying to make you move your money
somewhere you should not. Please be very careful. Work with people you
know, and people you trust.
That is all the news I
have today. We’ll update the INFOline again next Thursday.
Thank you all for all you
are doing for our Company. Drop me a note with any questions or comments
you have. My email address is
john.graber@abxair.com.
Debbie
Loveless'
Infoline | April 9, 2009
Good afternoon,
ladies and gentlemen. This is Debbie Loveless with the ABX Air INFOline
for April 9, 2009.
Safety
First let me talk about Safety. The varying weather
conditions remind us all that spring is here and with that comes the
potential for severe weather. As you move from one work area to another,
please take a few minutes to familiarize yourself with your surroundings
and the nearest tornado or lightning safe location. This will allow you
to move quickly to a safe location should a warning or evacuation be
directed.
With warmer weather, more people are out and about in
your neighborhoods. Please be alert to pedestrians enjoying the
outside and keep an eye out for children playing.
For those of you who use US Route 68 traveling south of
Wilmington, please be aware that it will be closed at the State Route
350 Bridge beginning on April 24. A detour will be in place for
approximately 120 days.
ABX Air Reorganization
Last week, department leadership met with their folks
and provided more clarity about what the ongoing organization structures
will look like. This week we are working hard to make sure everyone
knows how those structural changes affect them directly. If you don’t
have that information or have questions about the information you do
have, please see your department leadership. While we expect to
implement the bulk of our organizational changes early in May, we know
it will not be a perfect science and some changes may take more
transition time than others. Please work closely with your management
regarding your particular position.
For those who will be leaving ABX, please be sure to
visit AirparkTransitionCenter.com
to learn about the support available to you as you explore other career
options. The Transition Center site has a job board with many job
opportunities worth considering. There is also information about the
Military and Civil Service Career Fair being held in Dayton on April 15.
Additionally, the positions available at Airborne Maintenance and
Engineering Services are listed at Airbornemx.com.
Please check these sites out and visit the Transition Center to learn
about other opportunities.
For employees hired before January 1999, be on the look
out for your profit sharing statements, which will be mailed next week.
As a reminder, profit sharing is a part of the overall ABX retirement
program.
Finally, I ask that you please consider supporting the
American Red Cross Heroes Campaign. ABX Air and DHL have teamed up to
help the Red Cross continue its valuable mission by holding a benefit
raffle and by sponsoring casual dress days. Tickets for the drawing or
for the next casual day on April 30 can be purchased from various
volunteers across the base. Please see
myabx.com or the nearest
Communication Center for the list of volunteers with tickets in your
area.
That is all the news I have today. We’ll update the
Info line again next Thursday. Have a safe Easter weekend and take care
of each other in the meantime. Thank you for all that you are doing for
our Company.
John
Graber's Infoline |
April 2, 2009
Good morning ladies and gentlemen. This is John Graber
with the ABX Air Infoline for April 2, 2009.
Safety
In Safety, I am very proud to compliment our Reload and
Autosort folks for their outstanding first quarter performance. They
worked the entire quarter without an accident, turning in a perfect
record. Manager Regina Vandervort wanted to make sure we congratulated
her folks, and it is my pleasure to do that.
I have worried about our Ground Operations statistics,
but our incidents are down by a third, year -over-year,
and performance like this really helps.
Safe operations are a challenge in our work. It takes
attention to detail and care, day in and day out. And we are making
significant gains in our Safety performance. Reggie thanked her People
and her leaders for taking care of their People. That is exactly the
right sentiment. I could not have said it better.
Operational Performance
We missed our STAR goal for March – 95% - by less than
a half a percentage point. We face a challenging schedule with all the
multiple stops in our system as we cover the nation with fewer assets,
but it is a schedule we can hit. Help us do it every day.
ABX Air Reorganization
We are well down the path towards defining what ABX Air
will look like going forward. By the end of this week most of our
Departments will have completed their departmental meetings to tell
their folks what to expect those organizations to look like. As I said
in our Hangar Talks in early March, we are lowering our airline costs
and our airline structure to make us more competitive in the ACMI
marketplace.
Our reorganization will affect every department
differently, depending on the needs of our business. Our Flight and
Maintenance & Engineering departments will see the largest cuts in
pay. Our support departments will have fewer pay cuts and they are being
asked do more with less staff. We expect to implement the bulk of our
organizational changes early in May, and we are working hard to make
sure everyone impacted knows the changes in their areas by the end of
next week. If you have any questions about what this all means to you,
ask your departmental leaders. We want to answer your questions as
quickly as possible.
DHL’s Plans for the Future
We met on March 13th with senior DHL Express
leaders for the first time to discuss their plans for the future. In a
two hour meeting, Joe Hete, Joe Payne and I met with Ken Allen, Ian
Clough and two other senior DHL US leaders. We had wide-ranging
discussions covering a host of issues.
DHL indicated they don’t yet know what they are going
to look like going forward. We have agreed to work closely with them to
lower their costs in Wilmington, but don’t as yet know what their
plans are for staying here or moving their operations to Cincinnati. Our
next meeting is scheduled for late this month. As we know more, I’ll
pass it on.
Wilmington Changes
As we get smaller at ABX Air, we’re making changes on
base. You’ll see several things happen over the next few weeks. First,
we’re going to close the Employee Welcome Center. If you park there
now and ride the buses to work, look for us to move you down to the
parking lots near the Admin building and our hangars. You’ll soon be
able to walk directly to the sort, entering the ramp from a couple of
gates. We’ll have complete information out soon.
We are also going to consolidate our physical footprint
on base. We are evaluating several alternatives, but our goal is to
close all the buildings we can, and move our airline operations –
flight and maintenance – into one building. I’ve asked Gary Stover,
our Vice President of Air
Park,
Tammy Voss, our ABX Air Controller, and Grant Richardson, who runs our
IT systems, to lead our efforts. Look for us to start moving sometime in
May.
Rumors
I have a couple of rumors this week.
First is the rumor that DHL has decided not to stay in
Wilmington because it costs fifty to sixty million dollars a year to run
the air park. I can’t speak to what DHL has or has not decided, but I
can tell you it doesn’t cost anywhere near that much to run our base.
We are working with DHL right now to understand what capabilities they
need going forward. It is clear to me we will present them a model that
shows they can save money by staying in Wilmington.
Another rumor says DHL has told ASTAR to stop flying
their 727 and Airbus fleets, and to fly their DC-8s through the end of
the year. DHL has indicated to us that they don’t intend to operate
ASTAR’s 727s going forward. We don’t know about the other parts of
the DHL plan.
That is all the news I have. We’ll update the Infoline
again next Thursday.
Thank you all for all you are doing for our Company.
Drop me a note with any questions or comments you have. My email address
is john.graber@abxair.com.
Gary Stover's Infoline |
March 26, 2009
Good
morning ladies and gentlemen. This is Gary Stover with the ABX Air
Infoline for March 26.
Safety
Let’s begin with safety again this week. Recently the employees in Base
Shop found that they were getting carbon monoxide readings in their
respirator breathing air. Property maintenance analyzed the
compressor and breathing air system. They identified that the
heater in the compressor room had a small crack in the heat exchanger
allowing some carbon monoxide to get sucked into the breathing air
compressor. Both groups worked well identifying a safety hazard
and in determining the solution. Our thanks go out to Jack Sharp, Rudy
Burden, Eugene Engle, Steve Smith, Sam Spargur, Phil Baker, Steve
Wright, Pat Hinton, and Steve DeWeese.
Through
Feb 2009 our OSHA Case Frequency rate is 24% below last year's total.
Our Lost Time Frequency is 37% below our 2008 year end value. The
Ground Dept, which has typically had a high OSHA Case Freq, has reduced
their rate by almost 33%. This is good performance, and we very much
appreciate the part everyone plays in making reductions like these
happen every day. Thank you.
Operational
Performance
Our STAR Goal for March is 95%. As of March 23rd we are at 95.01%. Let’s
all stay focused on the job at hand for the rest of the month and ensure
we meet this goal.
ATSG announces annual & 4th Quarter earnings
ATSG said its 2008 revenues increased 37 percent to $1.61 billion from
$1.17 billion in 2007. Fourth-quarter 2008 revenues increased 35 percent
to $430.7 million from $319.2 million. For more information please visit
www.atsginc.com.
DHL update
Joe Hete and John Graber met last week with Ken Allen, newly appointed
CEO of DHL Express about the future of the two key agreements – the ACMI
and our Hub Services Agreement – that define our business with DHL. It
was our first discussion with DHL about their plans for the future. We
hope this meeting will be the first in a series of discussions. DHL is
very happy with the service we provide but is looking for lower
costs. We have no indication of how they will operate past September
yet, but we expect to cover that ground in subsequent meetings.
AMES update
Several weeks ago it was announced that Airborne Maintenance &
Engineering Services (AMES) was hiring. We are still hiring and continue
to identify candidates that will help us build a world-class
organization. We are very pleased with the amount of interest in AMES.
We have identified some of the key leadership positions across different
operational and support departments. The positions and individuals
selected to-date are as follows:
POSITION |
INDIVIDUAL |
Director of Component Repair & Overhaul |
Jim
Newell |
Director of Engineering & Manufacturing Services |
Brad
Heath |
Director of Human Resources |
Debbie Loveless |
Director of Line Maintenance |
Mike
Ebert |
Director of Material & Stores |
Bill
Brown |
Director of Quality Assurance & Training |
Jeff
Becker |
Executive Assistant |
Mary
Jo DeMent |
With these selections, the key leaders can now move quickly to begin
another series of interviews that will assist in identifying
additional leadership and technical positions within their respective
departments. We would like to thank all of those that have participated
in the selection process and to congratulate those that have joined
AMES.
By the end of this week, all positions will be posted on
www.airbornemx.com.
Remember, the MRO openings are not posted on ABX Air bulletin boards.
The only place you will find AMES opportunities is the www.airbornemx.com
web site.
Transition Center update
The Air Park Transition Center has opened up Résumé Support,
Interviewing Skills, and numerous computer classes to non-noticed
employees. Classes will be scheduled with noticed employees first and
then non-noticed employees will be contacted when seats are available in
classes. These classes must be taken during non-work hours.
Please go
to the Transition Center web site at
airparktransitioncenter.com for a full calendar of events and call
937-366-2665 to schedule a class.
The Air
Park Transition Center web site has a very useful Job Bank for job
seekers. The Job Bank has over 270 open jobs posted by numerous
employers and they are broken down into categories that are easy to
identify. Go to
airparktransitioncenter.com to see what jobs are listed.
Retirement plan
A
letter was sent to all Retirement Plan participants on March 20, 2009
from Joe Hete. We had previously notified you that the Company elected
to freeze the accruals in the Retirement Income Plan effective April 14,
2009. We understand that a company-sponsored retirement program is an
important part of your total compensation. Joe indicated that the
Company was reviewing alternatives for a "go forward" retirement
program.
The
Company has elected to enroll all eligible employees into the 5%
contribution program under the Capital Accumulation Plan / 401(k). This
is the same program that has been provided to employees hired after
September 1, 2005, who were not eligible to participate in the retirement
income plan.
All eligible employees will receive a contribution equal to 5% of
eligible earnings to their 401(k) account. The contribution will be made
after the close of each year. For 2009, since you earned credit under
the Retirement Income Plan for the first 3 months of 2009, the 5%
contribution will be prorated starting April 1, 2009.
Some
other important details:
-
You
must be employed by ABX Air on December 31 of each year to receive a
contribution for that year.
-
The
contribution will be invested in the age appropriate Fidelity Freedom
Fund. After the contribution is made, you may elect to transfer the
funds into any of the other investment options in the 401(k) plan.
-
You
must be a full-time or part-time employee (not covered by a collective
bargaining agreement) and have a least one year of service with the
Company and work 1,000 hours during the year to receive a
contribution.
-
You do
not have to be contributing to the 401(k) plan to receive the 5%
contribution.
-
You
become 100% vested in the program after completing 3 years of service
with the Company. Your service under the Retirement Income Plan will
count towards vesting.
-
Severance and retention payments are not eligible earnings for
calculating the 5% contribution.
Additional information about the 5% contribution can be found in the
Benefits Handbook (Summary Plan Description) in the Retirement Plans
section. This document is also available online at
www.myabx.com/benefits.
If you
have any questions about your retirement benefits please contact Kathy
Eversman on ext. 62463 or Dawna Kennedy on ext. 62150.
Giving back
ABX Air and DHL are teaming up to support the Red Cross by hosting a
series of $5 Casual Days. Just in Clinton County alone, over 5,250
people received a service from the American Red Cross in 2008. The next $5
Casual Days are Thursday, April 9, and Thursday, April 30.
Our People
Maintenance & Engineering honored six employees with Letters of
Recognition: Bruce Boyers, Steve DeWeese, Chad Hadley, Jay Iseman, Glen
Okumura, and Mitchell Worthington. Congratulations.
That’s
all the news I have for this week. John Graber will update the Infoline
next Thursday.
Thank you
for all of your efforts.
John Graber's Infoline |
March 19, 2009
Good
morning ladies and gentlemen. This is John Graber with the ABX Air
Infoline for March 19, 2009.
Safety
In Safety this week, I want to thank Tom Shaw for pointing out a Safety
issue. Tom saw we’d left a hoist set up in a way that might violate OSHA
regulations. He reported the problem, and we dismantled the hoist and
took it out of service. Tom, thank you for helping us correct our error.
Like all
complex organizations, we make mistakes. Keeping our error rate small is
important, but just as important is how we solve the mistakes we do
make. When an error creates unsafe or non-compliant conditions, help us.
When you see something you don’t think is right, make sure you point it
out and we’ll tend to the issue quickly.
Our Ramp
and Transportation departments reported no recordable injuries for
February. Exceptional performance. Thank you to everyone who put those
numbers together in a very challenging month. Keep that streak going.
Ramp and
Transportation’s February numbers are helping us with our overall Safety
and injury performance. Our annual goal for OSHA-recordable events in
2009 is 6.2 events. Our current performance is 3.6 – a very good score.
Any injury is one too many, so I’ll never be satisfied with any event in
this area, but our performance is much better than it has ever been, and
it is important to recognize that improvement. Thank you all for your
hard work and attention to detail. Keeping each other Safe in our
demanding environment is the most important things we all do.
Operational Performance
In our first quarter quality audits, Autosort, Primary A, Primary F,
Sections 10 and 11, all scored a perfect 100 percent. Thanks to all of
you who put those numbers together.
Audits
are one measure – a snapshot – of how we’re doing for our Customer and
for each other on a given day. The challenge is to ensure we hit the
high marks whether an auditor is watching or not.
Our
Recent Deal with DHL
Yesterday we announced that ABX Air and DHL have agreed to two things,
both important to our company. First, we agreed to amend our $92 million
note with DHL. DHL has agreed to extinguish $46 million of the note, and
ATSG, our parent company, will pay DHL $15 million to further reduce the
remaining principal we owe DHL. DHL will also withdraw its claim for us
to repay the note early. DHL had made that argument last year after ATSG
bought CHI. The impact of all this is that we’ve reduced a $92 million
debt to $31 million – and only spent $15 million to do it. If you aren’t
familiar with the note, it is an obligation that came out of DHL’s
purchase of Airborne. It has been on ABX Air’s books from our first day
as a new business. Second, DHL and ABX Air signed a memorandum of
understanding – an MOU – to give DHL the option to dry lease four Boeing
767 freighters. We’ll lease them the aircraft at favorable rates, from
August 15, 2010, through 2015. In return for those leases, DHL will
assume financial responsibility for five leased 767 PCs. This agreement
gives DHL access to aircraft it needs, if it needs them, and reduces our
debt by almost $53 million. This agreement does not extend our ACMI
contract with DHL.
Senior
leaders from ABX, ATSG and DHL have been working these issues for over
six months. When we sign final documentation and close the agreements,
we will have reduced ATSG’s long-term obligations by almost 20% -
helping us make our company significantly stronger. I want to thank
everyone on the ATSG, ABX and DHL teams who helped put these deals
together.
We have
not yet started talking to DHL yet about the future of the two key
agreements – the ACMI and our Hub Services Agreement – that define our
business with DHL. We expect to start those discussions soon.
Rumors
There is a rumor that we’ve changed the way the retention program or
retention payments will be made. The rumor is that a person can leave
the company whenever they want, and receive retention. That is
incorrect. One of the basic qualifiers for retention and severance is
that you have to work for us as long as you are needed. That basic
component of both programs has not changed.
That is
all the news I have. We’ll update the Infoline again next Thursday.
Thank you
all for all you are doing for our Company. Drop me a note with any
questions or comments you have. My email address is
john.graber@abxair.com.
Brady Templeton's Infoline |
March 12, 2009
Good
morning ladies and gentleman. This is Brady Templeton with the ABX Air
Infoline for March 12th.
Safety
First of all, Safety continues to be one of our highest priorities. You
continue to demonstrate this as a priority by the marked improvements
that have been achieved. Continue your focus on Safety through daily
communications at all levels within the organization and with thorough
follow-ups on any accident that involves an injury or damage event.
Operations
Congratulations on beating our STAR service goal for February. The goal
was 94 percent, and we ended the month with 94.17 percent on-time
arrivals. Only three more late arrivals would have dropped us below the
goal. As you can see by this narrow success, every on-time arrival is
important! You will see your STAR payout on your check on March 27th.
Transition Center
We continue to receive very positive feedback on experiences at the
transition center. We appreciate the professionalism and effectiveness
that is being demonstrated by all involved.
The State
of North Dakota will hold a job fair at the Air Park Transition Center
next Thursday, March 19th from 10am to 3pm. Bring your resume and 'Dress
for Success'. North Dakota has thousands of jobs available. This could
be a life changing opportunity for you.
Last week
the Transition Center hosted a job fair for Mane Fragrance located in
Lebanon, Ohio. Over 80 Air Park employees had personal interviews and
the initial feedback from company representatives was excellent. They
were impressed with the caliber of people that came to the job fair and
everyone was well prepared.
Currently, most services offered at the transition center are available
to noticed employees only. However, if you need assistance with a resume
or other support, you can speak to the State Representative that is
available at the transition center in bldg. 5 from 9a-3p Monday through
Friday. Ellen Burchett will be happy to help you. Just call 366-2665 and
ask for Ellen.
Don't
forget to check the Transition Center website at
www.airparktransitioncenter.com for other helpful information.
Thanks
to all the staff supporting the Transition Center. They are doing an
outstanding job in serving our displaced employees.
Airborne Maintenance & Engineering Services
We are excited with the high degree of interest in this new venture,
witnessed by the sheer volume of on-line applications received. To date
there have been more than 200 applications received for only 10
positions.
As we
stated in our hangar talks last week, additional opportunities for
management and staff positions will be posted this week. We are on track
to post them by close of business Friday, March 13. Additional positions
are expected early next week with all technical positions being posted
the week of March 23.
We are
finalizing an organizational structure that will provide a better
understanding of the layout that’s been envisioned for this new company.
In addition, we’ll provide a summary of other details necessary to make
educated decisions on which job opportunity provides the greatest
interest to you. These details will be posted on bulletin boards
sometime next week.
We’re
still on track to transition in May. Stay tuned for additional updates
as they become available.
That’s
all the news I have for this week. John Graber will update the Infoline
next Thursday.
Thank you
for all of your efforts.
John Graber's Infoline |
March 5, 2009
Good
morning ladies and gentlemen. This is John Graber with the ABX Air
INFOline for March 5, 2009. I hope everyone is doing well.
Safety
In Safety this week, I want to pass on the comments of Nicholle
Stratton, one of our Safety Coordinators. Nicholle wrote our Ground
Department to find out who was driving tug 1842 the other night. Alex
Hesler was the driver, and Nicholle reported that Alex "took the time to
pick up freight that was in the main drive lane." She said, "Several
vehicles passed by it, and the drive lanes were quite busy. Not only was
he promoting Safety but also Customer service. Please tell him it was
noticed and very appreciated."
Nicholle’s note gives me the chance to thank two of our folks – Alex for
the care and professionalism he showed on the job, and Nicholle for
taking the time to find out who he was and send me the story.
Thanks to
both of you.
Operational Excellence
Jeremy Heard wrote to tell me about the remarkable job our line
maintenance pros did in Memphis recently. We use a trailer there, and
for some reason the power went out in the trailer for the better part of
a week.
Undeterred, our Line Reps David Huff and Nick McTague, and Field
Supervisor Wes Ballard improvised. They have to terminate a 767 at the
station, and that required power. To make things go, David, Nick and Wes
moved a DHL light cart off the ramp, put it next to their trailer, and
used the generator on the light cart to power their computer and
printer.
And the
best part is our Memphis team turned their aircraft on-time all week
long.
Thank
you, gentlemen. Thank you very much.
Hangar
Talks
We held our Spring Hangar Talks yesterday. Thanks to all of you who
attended. If you missed the meetings, you can find a recording of the
morning session on
ABXnet.
We
covered a lot at the meetings. I’ll hit the high points here.
We
reviewed our Safety and Compliance performance. It has been excellent
since May 28. Thank you for your work in turning in that strong
performance day after day, month after month. We talked about how much
our company has changed in the last nine months, and about the
operational performance we’ve turned in – 98 percent on time. That
performance is making a difference for DHL and can help us keep their
business for a long time going forward.
We talked
about the Deutsche Post investors’ call last week. In that call Deutsche
Post’s CEO, Frank Appel, indicated the DHL/UPS deal was in doubt. But he
said their performance in the United States drawdown had been excellent.
That comment was a direct reference to the work of ABX Air. Appel
announced that Ken Allen, who has been CEO of DHL US since May, has been
promoted to CEO of the entire DHL Express operation. We have spent a
considerable amount of time with Ken. He is someone we can work with.
I talked
about the plans for our business we projected last June – trying to keep
DHL for the long term, building our ACMI charter business beyond DHL,
ATSG’s dry leasing aircraft, and expanding our services businesses.
Today, ABX Air and ATSG are doing exactly what we said we’d do last
June, and all those efforts are paying off.
We spent
a lot of time going over ATSG’s new MRO business – Airborne Maintenance
and Engineering Services (AMES). That business is starting to advertise
for People. Go to their website,
www.airbornemx.com,
for more information. Longtime ABX Air leader Brady Templeton is the
General Manager of that new business.
At ABX
Air, we intend to hire the new MRO to perform all of our aircraft touch
labor in the hangar and on the line. Terry Scherz, our VP of Maintenance
and Engineering, is working with Brady Templeton on how we’ll transition
work from ABX to AMES. I expect that we will transition our first work
from ABX to AMES in early May.
We talked
about the economy’s impact on the worldwide ACMI marketplace, and how we
have to lower our costs to be more competitive. I told everyone that we
are going to reduce pay in many of our airline positions to better align
the compensation in those jobs with the environment we find ourselves in
today.
We are
going to do that for two reasons – to attract more ACMI business, and to
show DHL that we can lower our costs and give them a cost structure that
allows them to stay in Wilmington, using ABX Air to fly for them, for a
long time to come.
I told
you all months ago that Joe Hete and I would take the first pay cuts in
our business. Joe and I cut our pay with our first paychecks of 2009. We
will cut our pay again when we implement the cuts for everyone else in
early May.
Rumors
A rumor coming out of the Hangar Talks was that we have a warehouse full
of purple paint to use when FedEx moves into the base. I checked with
our facilities and materials folks. No purple paint. They say every
rumor has a kernel of truth to it; I don’t know the kernel in that one.
That is
all the news I have. It was good seeing so many of you yesterday. We’ll
update the INFOline again next Thursday.
Thank you
all for all you are doing for our Company. Drop me a note with any
questions or comments you have. My email address is
john.graber@abxair.com.
Bob Gray's Infoline |
February 26, 2009
This is
Bob Gray, Vice President of Regulatory Compliance and Government Affairs
for the ABX Air INFOline for Thursday, Feb. 26, 2009.
Many of
you have expressed your interests in the status of the ongoing
negotiations with our pilot group. For the past three months the company
has been working hard with the Pilot Union representatives in a
concentrated attempt to reach a collective bargaining agreement that
will allow the ABX to compete in the ACMI market. During that time, most
of our efforts were spent developing new scheduling rules that were
designed to eliminate the unproductive aspects of the existing
agreement. We are pleased with the overall outcome achieved by these new
work rules and are proceeding to work our way through the rest of the
contract. While progress continues to be made, we are somewhat
disappointed at the rate of that progress. The sooner we can nail down
our new cost structure, the better assurance we have of being an
effective competitor as we work to expand our presence in the ACMI
marketplace.
To be
competitive in that market, it will require lower overall costs across
all parts of the Company, including not only the pilot group, but all
the rest of the employees. We will all be working harder and taking on
greater levels of responsibility, and we will be reviewing all cost
areas. Our spending needs to be in line with our revenue. ABX Air must
respond to these weak economic times so it can position itself for a
strong recovery when the economy rebounds. Uncertainties with DHL
business and the increased competition in the ACMI market are driving
changes to our business model right now. Quality service at competitive
rates is essential, and cost controls are the most effective way to
accomplish this quickly.
We also
have received several questions from our employees about the recently
announced discontinuation of the excellent attendance program. To
clarify, this discontinuation impacts the yearly attendance program, NOT
the monthly productivity bonus. This productivity bonus is being done in
conjunction with DHL, and is subject to their on-going approval. If you
have any questions, please check with your supervisor.
For those
of you that may not be aware, DHL has announced that effective February
26, John Mullen has stepped down as a member of the DHL Management
Board, due to health-related issues. Mr. Mullen has been replaced by Ken
Allen. Mr. Allen has most recently worked as CEO of DHL Express.
We want
to continue to remind all of you that it is especially important during
these turbulent times to keep your mind on the task at hand. Whether you
are working on the ramp or in the cockpit, allowing your attention to be
distracted from the safe performance of your job can result in an unsafe
environment and place you in danger of serious injury.
Thanks to
all of you for your continued hard work and dedication to make ABX Air a
continued success.
John Graber's Infoline |
February 19, 2009
Good
morning ladies and gentlemen. This is John Graber with the ABX Air
Infoline for February 19, 2009. I hope everyone is doing well.
Safety
Starting with Safety this week, I got an email from the head of our
pilots' union's Air Safety Committee. He expressed concern about ABX
Air's Safety culture. I'll use his concern as a good time to reinforce
the message I gave our entire ABX Air leadership team Wednesday. There
is nothing more important to us than Safety.
Let me be
perfectly clear about this: we must operate safely. With all the
economic stress and strain on our People and our organization, we are
more likely, not less, to create an unsafe condition. If we do that, we
have made an error. If you see one of those errors, you have the
responsibility and the authority to correct it. Don't try to use that
authority to play with our business, but if you see something in our
business that you don't think is safe, stop what you're doing and help
us make it safe.
The most
common Safety errors we make are when we rush to do something, when we
don't follow procedure, or intentionally violate procedure. You never
have to do any of that to do your job. Do what you need to, to operate
safely, and take our pilot's Air Safety Chair's worries seriously.
Operating safely take constant vigilance and attention. Please help us
provide it.
DHL
In DHL news, Deutsche Post World Net, DHL's parent, has their 2008
earnings call on February 26, and they are expected to comment on the
UPS deal then. We don't know what they'll say, but both DHL and UPS have
said publicly that it will be hard for them to reach a deal.
ATSG
News
We have an announcement about
Amerijet. This week, ATSG, our parent, announced that
CAM (Cargo
Aircraft Management), another ATSG company, has agreed to lease
Miami-operator Amerijet two 767 freighters, with options to lease them
three more.
These
leases are part of the ATSG business plan Joe Hete and I first talked
about in Hangar Talks last summer, part of a plan to diversify our
portfolio of products to the marketplace. You may remember we talked
about operating aircraft on the ABX Air certificate, growing our other
businesses as we grow non-DHL revenue, and dry-leasing some of our
airplanes.
These dry
leases create a new revenue stream for ATSG, and can secure many jobs
both here in Wilmington and elsewhere. Though our flight crews will not
be operating these aircraft, ATSG will provide virtually every service
from maintenance to spare parts to pilot training.
Cost
Control Efforts
I'll move to our pay plan for 2009. This week we announced that we are
instituting a
pay
freeze at ABX Air. The freeze will go into effect on February 23 and
run for 52 weeks. Every ATSG company is freezing pay. There are many
details surrounding how we will implement the freeze, and we will work
hard to make sure we get them all right, but this is a complex process.
If you see us making a mistake, point it out and help us fix it.
We've
taken this action because it's clear to us that the economy is getting
dramatically worse, and there will be an impact on our business. We have
to manage costs and adjust, so that when things turn around, we're best
positioned to take advantage of the opportunities that will be there.
Freezing
pay is the first of several actions we'll take going forward. I've asked
our senior leadership team to restructure ABX Air and create a
lower-cost model that is a strong competitor in the ACMI marketplace. We
will change processes, we'll shed work, and we'll create new
efficiencies in our business. They will look at how we do everything and
what we have to do to be competitive. My expectation is that we will
complete this restructuring by the first week of May.
Hangar
Talks
I told you last week that we'd have Hangar Talks this week. I need to
delay those until March 1, because I think its best to have our meetings
after we hear the Deutsche Post World Net earnings call on February 26.
March 4 is the first Wednesday after that call, when most People are
here, so we'll have our meetings then. Please look for the schedule and
come hear Joe Hete and I talk about our plans for the year ahead.
Rumors
I heard the rumor that we are talking with DHL about operating 767s for
them internationally. I don't usually comment on business opportunities,
but in this case I can tell you we have had no such discussions with
DHL. They've been bound by an exclusivity agreement with UPS for quite
some time and have not talked to us about future business at all.
That's
all the news I have. We'll update the INFOline again next Thursday.
Thank you all for all you're doing for us and our company. Please drop
me a note with any questions or comments. My email address is
john.graber@abxair.com. Take
care.
John Graber's Infoline |
February 12, 2009
Good
morning ladies and gentlemen. This is John Graber with the ABX Air
Infoline for February 12, 2009. I hope everyone is doing well.
Safety
Its north of fifty degrees in Wilmington this week, but as I sit here
writing this the wind is blowing at fifty knots. Much of the safety in
our operations starts with planning. Tuesday morning, when Jim O’Grady
started tracking these winds, all of you went to work. You mobilized,
securing our equipment, our aircraft, and our ramps. That preparation
helped us make it through Wednesday night’s winds unscathed. It was a
good job by everyone concerned. Thank you for your attention to detail.
Retention
There have been many questions regarding retention payments. Today, I
have some good news. DHL’s senior US leaders have told us they intend to
continue the retention program until the end of June. That would make
the program run for a full year. We had worried that they would stop the
program early, because their deal with UPS appears in doubt. I spoke
with DHL’s leaders myself this week, and they assured me they will pay
retention for the full year. Payment will be made in July or early
August.
Many of
you have asked me if you have to leave now to ensure yourself you will
get the retention payments. You do not.
DHL
and UPS
As of Wednesday, February 11, DHL is still negotiating with UPS.
Tough
Year
It is clear to me that 2009 is going to be a tough year for ABX Air. Not
that 2008 was any cake walk, but we have a lot of hard work to do this
year, and we have to do it in really tough conditions. In addition to
all of DHL’s issues, our other businesses are impacted by the poor
global economy.
Charter
cargo is off in Miami. Asian flying is down. The good news for ABX Air
is that our 767s are fewer in number and in stronger demand than 747s,
for instance. But the poor economy’s impact on oil, and the resulting
lower fuel prices, makes it easier to keep larger, more fuel inefficient
aircraft flying.
We are
going to have to respond to the changes we face. I’ve tasked our senior
team with building a restructuring plan for our company – one that will
position us to survive the downturn, and be ready for the new cycle when
it comes.
Hangar
Talks
We’re scheduling a series of hangar talks for next week. Look for the
schedule. In those talks Joe Hete and I will talk about our plans for
the year ahead. We’ll cover current events with ABX Air and DHL, the new
MRO, and we’ll answer your questions. We’ll hold the meetings several
times during the day and night to cover all shifts. Please plan to
attend.
Joe
Muckle’s Editorial
Joe Muckle, the president of our pilots’ union, wrote an editorial in
the Wilmington News Journal this week. A lot of you tell me you’re
scratching your heads after reading it. Joe took ABX Air’s leadership to
task in a carefully-written piece that puts out a lot of heat, but not
much light.
Now you
will never hear me shoot at our union or the pilots it represents. If
we’re careful, and we can reach a competitive and prudent agreement, our
company and our pilots union have years in front of us to work together.
I want those years to be good ones, constructive ones, beneficial ones.
When we disagree with our pilots and their union, it isn’t because
they’ve done something wrong or because they are bad People. We disagree
because we have a different point of view. Joe has chosen to
characterize our disagreements as something attributable to management
greed or dishonesty. That just isn’t true.
He may
have taken that tack because hundreds of our pilots are losing their
jobs – over 150 next week alone. They don’t deserve that anymore than
anyone else at ABX Air. Our contract paid our pilots an average of
$192,000 apiece last year. 233 of our pilots made over $200,000, and a
few made over $400,000 in 2008. But for all that pay, our contract has
never had a severance program.
When we
saw DHL getting into trouble last summer, our management team went to
DHL and asked for money to help our pilots. DHL agreed to provide
funding. The company and the union have to negotiate a new part of the
agreement for severance before DHL will pay us. The company and the
union agree that all the DHL money will be directed toward our pilots,
but we don’t agree on how to split it between severance and the pilots’
pension program. We’ve been negotiating for over six months.
So now,
while we’re at the table working on how to move forward together, Joe
writes his editorial. You’ll have to ask him why. Reading the article, I
can’t tell. It doesn’t seem designed to bring the two sides together.
I have no
new rumors this week, and that is all the news I have. We’ll update the
Infoline again next Thursday. Make sure you come to a hangar talk next
week if you can.
Thank you
all for all you are doing for our Company. Drop me a note with any
questions or comments you have. My email address is
john.graber@abxair.com.
John Graber's Infoline |
February 5, 2009
Good
morning ladies and gentlemen. This is John Graber with the ABX Air
Infoline for February 5, 2009. I hope everyone is doing well.
Safety
Winter came in earnest last week, hammering us with 2009’s first major
snow event. Snow, freezing rain, sleet, ice, and more snow pelted us for
more than three days. In the midst of the storm we ran over 20 hours of
continuous deicing operations. We dispensed more than 100,000 gallons of
deice fluid. We moved thousands of tons of snow. Under Kent Stewart’s
leadership, we met our deice goals. Gary Stover and our Air Park
professionals kept our airport open. Don Cook and Jan Woolums and their
teams did remarkably well moving freight. Contingency, Crew Scheduling,
Flight, and Maintenance Operations--everyone pulled together to make a
real difference for our Customer.
I’m
talking about the weather now, in my Safety section, because one of the
most remarkable things about the three days is that we only had one
injury. One. We worked thousands of hours, hundreds of hours of
overtime. In all of that, we had one person slip and fall. One injury.
I was out
in the operation for much of the worst weather. I saw you working hard,
working smart, and working Safely. I cannot thank you enough for your
dedication and attention to detail. That kind of Safety performance is
hard to achieve. I’d prefer no one get hurt, and that has to be our
goal, but your performance was great. Thank you.
Performance
Since May 28, 2008, we’ve run 98.74 percent on time for hub departures,
counting the factors we control. We’ve built that record over 252
operational days. Thank you for that great job.
Milestones
The end of January marked the end of our domestic product--the product
that for decades was the backbone of our business. Many thousands of you
have dedicated your time, talent, and sweat to Airborne Express and ABX
Air. You built one of the most innovative, efficient, and reliable
delivery products in history. You should take a minute and reflect on
all you’ve done over the years.
We’ve
obviously reduced the size of our company as the domestic product came
to an end. In the last half of 2008 we have lost nearly half the 10,000
People we used to employ. We’ve parked 55 DC-9 aircraft, and on any
given day we have DHL’s 767s sometimes sitting idle. Those aircraft
reductions cost many of our pilots their jobs. Many more pilots face
huge cuts in pay as they are forced to downgrade from captain to first
officer.
Severance
is not part of our pilots’ contract as it stands now. When we saw DHL’s
trouble beginning, it quickly became apparent that our pilots’ group
would be the only set of Employees impacted by DHL’s decline that would
not be entitled to severance. That isn’t right, so we sent John
Starkovich, our VP of HR, to ask DHL for help. There are two broad
problems facing our pilots--the first is the lack of a severance plan
and the second is an underfunding of their pension program that goes
back to when DHL bought Airborne Express. After our discussions, DHL
agreed to provide millions of dollars for the benefit of our pilots.
Last
fall, months before our first pilot lost his job, we started negotiating
with our pilots’ union on how to spend DHL’s funding. The union’s
position is the money should be spent predominately on severance. We
believe the money is best spent on severance and the pilots’ pension
fund. There is good work being done on both sides of the table to reach
an agreement--but there is a wide gap between the positions. It is
important that we reach agreement on these issues soon because 160
pilots lose their jobs this month in our largest pilot layoff ever.
Industry and DHL News
ABX Air is not alone in these hard times. The International Air
Transport Association (IATA) reported Asia–Pacific traffic down 26
percent, and Latin American traffic down 23.7 percent for December.
IATA’s figures only cover scheduled international traffic, not charter
flying, but they paint a bleak picture.
In a
conference call this week, UPS’ CFO, Kurt Kuehn said UPS isn’t looking
for any “meaningful recovery until 2010.” UPS is laying off aircraft
mechanics, has frozen management salaries, and is suspending its 401(k)
match.
During
that conference call, Scott Davis, UPS’ Chief Executive Officer, told
analysts that it has become “very difficult” to reach an agreement to
fly freight for DHL. He cited DHL’s scaled back plans in the US as the
reason. Davis told analysts that negotiations are continuing, and he
said UPS “gained significant new volume as a result” of DHL’s move.
That
quote will spark all kinds of rumors around ABX Air. What you need to
know is that DHL has told us nothing definite about what they intend for
their business, or for ABX Air going forward. When you hear what someone
calls the big news or the true story, take it with a grain of salt. DHL
is still sorting out huge issues. When they tell us their intent, we’ll
tell you, and we’ll do it as quickly as we can.
All these
reductions are hard. I won’t try to tell you anything different. But I
will tell you that the changes we’re making in our business are going to
keep it alive. We are in the worst economic times of a generation.
Thousands of businesses around the world are failing. We are not. We
aren’t what we were, and that is hard to accept, but I’d suggest that we
can be better than we were, and that’s what we’re working towards right
now.
MRO
Late last week we met with the state of Ohio about our MRO business. It
was a very good meeting. State representatives showed us much of the aid
they are proposing to help our MRO get off the ground. We will wind up
these discussions with the state no later than February 23. Once the
state commits its aid package to us, we’ll be able to formally announce
our MRO plans. Thank you again for your patience.
I have no
new rumors this week, and that is all the news I have. We’ll update the
Infoline again next Thursday.
Thank you
all for all you are doing for our Company. Drop me a note with any
questions or comments you have. My email address is
john.graber@abxair.com.
Terry Scherz' Infoline |
January 29, 2009
Good
afternoon, ladies and gentlemen. This is Terry Scherz from Aircraft
Maintenance with the ABX Air INFOline for January 29, 2009. I hope
everyone is doing as well as can be expected.
Safety
I will start right off with our number one priority--your safety--and
some good news. The year-end results for 2008 are in, and most
departments saw significant decreases in their personal incident
accident rates. The Ground Department in many areas, Air Park, and
Aircraft Maintenance made notable progress in 2008 versus 2007 results.
The Aircraft Maintenance accident rate decreased by almost 50 percent.
Now
before someone thinks or says, "Well, we had less employees in 2008, so
our accident rate should be lower," that is not the way it works. The
rate is calculated on a formula that takes into consideration injury
events per hour worked. Your diligence and efforts are paying off with
real results. Keep doing more of what you've been doing, and look out
for each other. One injury is one too many.
Transition Center
The Air Park Transition Center in Building 5 will hold an open house
next Thursday, February 5 from 9 a.m. to 10 p.m. All Air Park employees
and their spouses are welcome to tour the facility and learn about the
services offered. I've had the opportunity to talk to a few employees
who are using the Transition Center, and the feedback has been very
positive. If you have not already, you really should check out what it
has to offer you.
MRO
We
continue to make progress, admittedly slower than we would like. We have
a meeting with the state this Friday, which will hopefully put us into a
position very shortly to communicate to you such things as pay,
benefits, and the application-interview process. I am sure John Graber
will update you further on next week's INFOline.
With that
said, our existing Aircraft Maintenance Department remains very busy
servicing existing and new customers' aircraft, which will be very
important to the new MRO.
Industry News
I hope most of you took the opportunity to watch 60 Minutes this past
Sunday. As most of you know, the 60 Minutes crew made several trips to
Wilmington during the past couple months in preparing for this story. We
may all have our own takes on how the story was told, but I thought they
did a fairly good job of telling the story of the economic devastation
and challenges that Wilmington, the surrounding area, and most
importantly our employees are facing. We know that many employees
willingly shared their story, and we appreciate your time, even if they
did not make it into the 12-minutes segment that was aired. I understand
that 60 Minutes will be returning to town again supposedly to do a
follow-up segment. We will keep you advised as we hear more.
Another
sign of tough economic times our industry is going through is an
interesting article this week regarding one of our long-time
competitors, UPS. A Louisville newspaper reports that UPS will be laying
off about 60 aircraft mechanics. The company blamed the economy for the
decision to lay off the mechanics, in which they said were the first
sizeable layoffs of mechanics in the history of the airline. They went
on to say that because UPS is flying less, they need less mechanics. A
number of former ABX technicians work for UPS, and we wish them the best
of luck.
Union
Negotiations
Company and Pilots' Union officials are continuing negotiations with our
flight crews. They are meeting in Annapolis, Maryland with a federal
mediator, and here in Wilmington. The working groups have made
substantial progress, and we remain hopeful that we can come to an
agreement that works for everyone. A successful outcome is certainly
very important to our collective future.
Weather
Our weather at Wilmington has been a real challenge the past couple of
days. Last week on the INFOline, John Graber said, and I quote, "We
haven't had that much snow this year." What was he thinking when he made
that comment? Well, this week we have been slammed with snow, then ice,
and more snow. Working conditions were deplorable, and the majority of
our employees came to work. For all of you who braved the elements,
thank you. When you left home, you knew what you had to look forward to.
Miserable weather, terrible working conditions, long hours, and you put
in a tireless effort until the job was done. You did it well, and most
importantly you did it safely.
A special
thanks to the Air Park crew and the deice teams for sticking with it.
Excellent job.
Milestones
Someone from the outside might ask, and actually I have been asked this
a couple times: Why do our employees work so hard in these uncertain
times for them, in conditions as tough as we have seen this week, to
provide our customers excellent and dependable service day in and day
out? Why do they still do it?
The
answer to this came quite easily to me. An ABX employee only knows one
way to get the job done. It is the way you have always done it. It is
who you are, and you are part of a team that has pride and integrity in
how you do your job. Thank you so very much.
A couple
more milestones are coming up, one this Friday and another next Friday.
Jim Taylor, our Senior Director of Day Operations Ground Department,
will be ending his 30-year career with ABX Air this Friday. During our
earlier years, I worked with Jim more closely and could always count on
him to help Aircraft Maintenance out in a pinch to minimize aircraft
mechanical delays. Jim has played a major role in building our airline,
and he will be missed. Please wish him well.
Then next
Friday Bernie Rosenow, our Director of Base Shops, will be retiring
after a career at ABX Air of almost 28 years. He and I have worked
closely together for this entire period. Bernie is another that played a
major role in building our company. If you get the opportunity, stop by
and wish him well.
That is
all I have to say for this week. John Graber will be back next week on
the INFOline. Until then be safe and look out for each other. Thank you.
John Graber's Infoline |
January 22, 2009
Good
afternoon ladies and gentlemen. This is John Graber with the ABX Air
Infoline for January 22, 2009. This I hope this finds everyone well and
staying warm.
Safety
Our Air Park Services personnel are working almost 24 hours a day to
keep our runways, driveways and walkways clear. We haven’t had that much
snow this year, but it is coming with enough frequency to make things
dangerous. Please remember that this is our most dangerous season of the
year. Every year several People slip and fall. Please, take the extra
time to make sure you are Safe.
New
Flying
We started our first scheduled trans-Atlantic revenue flight this week.
The route is from Kennedy Airport in New York, to Liege, in Belgium, and
back. We’re flying for TNT, a major freight forwarder. We’re able to fly
the route in part because we have reached agreement on augmenting crews
with our pilots union. Thank you to everyone involved in making this new
venture a success. And if you’re one of our pilots new to MNPS airspace
re-release and North Atlantic procedures, please make sure you square
yourself away before your assignment. This is good flying, but you do
have to be ready for it.
ABX
Air is Going to Change
We’re well into the demanding job of designing the new ABX Air. The new
ABX Air will be similar to the one we work for now, but better – and
worse. We’ll be better because we’re going to be faster, leaner, and
less tied to one Customer. Some will say we’re worse because for some of
our jobs, the new business can’t support the same pay and benefits many
of us are used to.
In our
new ABX Air we’re going to have to increase our productivity while we
cut costs. Most of us are going to have to learn how to do more than we
do today, and do only those things that add value for our Customers.
The new
ABX Air will fly aircraft, and we’ll operate postal centers, and we’ll
run operations for DHL as long as they need us to. We’ll sell aviation
material in Bill Brown’s business, and Gary Stover’s business will
provide a host of services.
I’ve
asked our senior leadership team to support those business lines with an
organization that is flatter, more responsive, and more supportive of
our People and our Customers. That will be very hard to do, and we have
no choice but to do it. That’s what our competitors are doing in our
marketplace everyday. If we want to survive going forward, we have to
meet our competition – but of course we don’t want to just survive – we
want to dominate. We want to excel. So meeting our competitors isn’t
enough. We have to beat them. And we can.
But that
means change, and that is my biggest worry going forward. We’re going to
ask everyone to do things differently than they’ve ever done them. We’re
going to ask for more initiative, more drive, and more Customer focus.
We’re going to ask you to work with a smaller, leaner organization. And
we’re going to help you have fun.
Soon
after DHL made its announcement May 28th, I started explaining to our
folks that we have three stages in the journey in front of us. The first
stage was reacting to DHL’s news, and helping our organization and our
People cope with that. That stage is well along now, but still has a
long way to go. The second stage is one of transitioning from what we
were to what we’re going to be. We’re entering that stage now, and have
to do that work while we continue supporting the tasks of the first
stage of our journey. The third stage is accelerating our growth as we
move forward, capitalizing on the groundwork we’re doing now, moving
away from today’s hard times. That stage is still in front of us, but
today we’re doing the hard work that will form the foundation we need to
get there.
I know it
is hard to think of a future that is better, when we’re going through
such hard times now. But there is a future for ABX Air, and it is a
better future, and we are working on it every day.
MRO
We are very close to finalizing our negotiations with the state of Ohio
on financial aid for the MRO venture. You’ve heard me say several times
that I thought we’d be done by now. We aren’t. We’re waiting on the
state, and we can’t move until we get final word from them. As soon as
we do, we’ll make sure you know where we are.
Transition Center
We’ve provided transition assistance to hundreds of our People, and
almost all the feedback we’ve gotten is that we’re doing a very good
job. This past week though, I got feedback from one of our pilots that
we have some incorrect information out there about what benefits are
available to pilots. That complaint was correct, and we’re working right
now to make sure we get the right material to everyone. This is
especially important now, because we have so many pilots who are losing
their jobs.
If you
are a pilot, and you have questions about what is available to you,
please call the Chief Pilot’s office. We’ll make sure we put you on the
right track. Getting you aid will take some work on your part, but we
can make sure you know where to go for the support you deserve.
Performance
Our performance continues to exceed all expectations, but DHL’s new
schedule is demanding more of us. Last week DHL implemented its new
system network for the United States. They planned a structure that has
little truck traffic, many more aircraft through stops than in the past,
and a much reduced footprint in the sort and on the ramp.
Those
changes helped knock our STAR performance for January down to 88.19%,
against a goal of 93%. We’re examining the schedule to understand where
we might recommend changes, but in the meantime it is critical to focus
on the operation every day.
Since May
28, 2008, we’ve run 98.78% on time for the hub departures. That
performance, day after day, is something you can be very proud of. Thank
you.
DHL News
Business Week magazine reported this week that the DHL UPS deal is late.
Of course we’ve all known that for some time. Business Week quotes an
analyst as saying he doesn’t think the deal will happen.
You can
find speculation about a DHL UPS deal everywhere. But the only ones who
know the status for certain are the DHL and UPS leaders who are
negotiating. DHL’s US CEO tells me they are still negotiating with UPS.
I tell you that simply to tell you something that is not a rumor.
Rumors
There is a rumor this week that DHL asked us to keep flying five DC-9s
and I turned them down. That isn’t true. We follow a very formal,
written process when DHL parks an airplane or closes a station. We
parked our aircraft only in response to DHL’s written instructions. If
DHL wanted to--or still wants to--fly DC-9 aircraft, all they’d have to
do is tell us, and we would put that in motion as quickly as possible.
And I’ve
heard the rumor again this week that our severance and retention
programs are being stopped early, or otherwise coming to an end. Our
agreements with DHL have not changed. It is important to note however,
that as we get further down the road of deal or no deal between DHL and
UPS, it gets more likely that DHL will give us a plan for their final
transition. That could include their requests for changes to the
agreements. And, DHL is paying retention for no more than a year, but
they can stop the retention period when they choose. That has always
been part of the agreements--it is not a change.
That is
all the news I have for this week. We’ll update the Infoline again next
Thursday.
Thank you
all for all you are doing for our Company. Drop me a note with any
questions or comments you have. My email address is
john.graber@abxair.com.
Mike Gerdes’ Infoline |
January 15, 2009
This is
Mike Gerdes, Sr. VP of Flight Operations, with this week's ABX Air
INFOline update for Thursday, January 15, 2009.
Performance for the past five days was 94.91%. Month to date is 95.61%
and average since May 28, 2008 is 98.93%. Our goal for January is 93%.
Once again you are demonstrating you commitment to quality service in
these difficult times.
Safety is
always a focal point for all of us. I’d like to share some data with you
on how successful you efforts have been related to reducing injuries.
In night
ramp operations, recordable injuries went from 167 in 2007 to 60 in
2008, with lost time also reduced from 107 to 41. The focus of managers,
supervisors and employees in reducing incidents has made a big
difference in injuries for the ramp group. New procedures were
implemented that have obviously paid off.
In the
Haz Sort, recordable injuries went from 25 in 2007 to 10 in 2008, with
lost time reduced from 16 to 7. This is an area that deals with many
different types of safety concerns throughout their job functions, and
the improvement here is a testament to their continued focus on safety.
In Non-Conveyables,
again improvement over 2007 was achieved, with a reduction from 68
recordable injuries to 22 in 2008, with lost time down from 36 to 11.
This area made a concerted effort to increase safety and it was a
challenge they meet. Again, this is a great indication of everyone
working together for a common goal.
These are
just a few of the reports we are getting in which every employee here at
ABX is proving their commitment to safety and the well being of their
fellow employees. Keep up this important effort, as the safety and well
being of each person here is everyone’s focus. Everyone should leave
work in the same shape they came to work everyday.
A
reminder that Fidelity Investments is holding retirement workshops in
the Air Park Transition Center on January 16th and 30th. See the
employee website for times and additional information.
In Flight
Operations, we continue to work with the Pilots Union on many issues as
the Company transitions to its’ new business pursuits. We have been
meeting with the Union almost continuously to cover many items, and I am
pleased to report that progress is being made.
We are
also working on new capabilities for our aircraft, including Extended
Range Two Engine Operations, or ETOP’s operations. This will allow our
B767 aircraft to fly more direct routes over water to provide additional
lift for our charter customers. We hope to have that completed and FAA
approved this spring.
I had the
opportunity to visit the night sort at the end of last week. I wanted to
share with all of you how impressed I was with the professionalism of
the managers, supervisors and employees I visited with and talked to. It
was a very difficult evening with many of your friends and colleagues
having their last day of work that night. Through the tears and
goodbyes, everyone worked very hard to make the operation go. Everyone
worked through the difficulties of that evening and showed their
professionalism. You should be very proud of your accomplishments. You
should be very proud of your fellow employees as well.
Thank you
again for all you do and as always, take care of each other and be safe
everyday.
John Graber’s
Infoline | January 8, 2009
Good morning ladies and gentlemen. This is John Graber with the ABX Air Infoline for January 8, 2009. This is my first Infoline of the New Year. I hope this finds everyone well and having had a great holiday.
Safety
We are well into demanding winter weather operations here in Wilmington. Please make sure you’re focused on Safety now, more than ever. If our history is any guide, the most common accidents we’ll have this winter will be slips and falls. Take the extra time to make sure you are Safe. Our Safety Department has put out an excellent resource for winter Safety on the web. Follow their advice and you’ll be well on your way to a Safe winter season.
Follow the lead of our Air Park Services organization. In the month of December our Air Park professionals turned in a perfect record – they had no recordable accidents or incidents. Great job.
Performance
Congratulations on beating our STAR service goal in December for the fifth month in a row. The December goal was 93 percent, and we ended the month with 95.33. That is exceptional performance, and I very much appreciate the hard work you have to do every single day to make the goal. Thank you. The STAR incentive payout will be on your January 16th check. Our goal for January is 93%.
We’ve run 99.14% on time in the 224 operational days since DHL’s May 28th announcement – looking at hub departures and the factors ABX Air controls. That near-perfect performance, day after day, is something you can be very proud of. Thank you.
DHL News
Senior DHL leaders tell me they are still negotiating with UPS. That means they’ve missed the deadline they set to have a deal by the end of 2008, and you may remember they missed the original deadline for a deal, set last summer. There is a lot of speculation out there about what these delays mean. Everyone seems to have an opinion, and of course there are lots of rumors. What I would tell you is that, whatever you hear, the only concrete piece of information available is that DHL UPS negotiations are continuing, and they’ve taken longer than DHL planned.
We do not know what the delays mean to ABX Air. We do know that we are planning to run our night sort operations and the flights that support them until at least July 1, 2009.
System Changes
Tammy Voss covered the closing of our regional hub system in last week’s Infoline, but I want to take this opportunity to recognize the hundreds of remarkable ABX Air Employees who did so much for so many years in the service of our company, our Customers, and each other. The People of our regional hubs are second to none. I wish all of you well, and I thank you.
This week marks another milestone for us – the last revenue flight of an ABX Air DC-9. This brings to a close decades of excellence in DC-9 service. I want to thank everyone who helped make those years of performance possible, especially our pilots and maintenance professionals.
These changes impact hundreds of our Employees. Many of our pilots and mechanics are losing their jobs as we stop flying the nines. Please thank these fine professionals for all they’ve done for us.
These large reductions in our business are the result of DHL’s withdrawal from the domestic market. In the next few days DHL will draw nearly 400 field locations down to about 130. Many flight lanes will close. Many locations once served by individual aircraft are being paired with through stops.
The final parts of DHL’s transition are the changes we’re making in the Wilmington hub. You’ll see many schedule and operational changes starting this week. Our Ground Department has been working hard to coordinate the changes with DHL. The implementation of DHL’s new network will be challenging, so please make sure you are aware of the changes as you start your work.
Rumors
There is a rumor this week that our retention benefit ends in January. That is not true. Our retention program has not changed.
That is all the news I have for this week. We’ll update the Infoline again next Thursday.
Thank you all for all you are doing for our Company. Drop me a note with any questions or comments you have. My email address is
john.graber
@abxair.com.
Tammy Voss’s INFOline | Jan. 1, 2009
Hello, this is Tammy Voss with the ABX Air INFOline for January 1, 2009.
Performance
As we reflect on 2008, we can all be very proud of the excellent performance that we have provided DHL. In the 218 operational days since the May 28th announcement, we have run 99.16% on time. This is outstanding. Our STAR goal for December is 93%. Our performance has been 95.28% so far this month. Keep up the excellent work!
Regional Hub
January 4 will be the last day of operations for the ABX Regional Hub Network. Day after day, the Regional Hub employees have demonstrated their ability to work thru numerous challenges while producing solid results for our customer. In 2008, the Regional Hubs handled over 110,000 truck departures. Less than 1% of the departure delays were attributable to hub loading. This outstanding operational performance was achieved while simultaneously making gains in safety, quality, productivity and cost reductions.
The Regional Hub Team is and always has been a dedicated group of individuals with a tremendous work ethic. Thank you for all that you've done for our company. You will truly be missed.
DHL Update
Previously, we had communicated that DHL planned to stop operating the DC9 fleet sometime in January. DHL has now provided us formal notification that they will cease flying the DC-9 on Jan. 11, 2009.
After January 11, ABX will continue to provide DHL with Boeing 767 service and night sort operations in Wilmington. DHL has stated that they will require ABX services through at least July 1, 2009. At this time, DHL has not provided ABX the 2009 freight volume forecasts and has not yet made a decision about the status of the airport. We continue to address these issues with DHL and will update you with any changes.
Our ABX Management team continues to work with DHL to explore how we can serve them in their new U.S. Strategy. In addition, we are focusing on expanding our 3rd party business. We are in the process of negotiating additional B767 Charter contracts and the MRO will be launched this spring offering five lines of business.
As always, our ABX leadership is focused on minimizing the impact and hardships to all ABX employees. As we reduce jobs, we will treat our people respectfully, we will give notice, and we will make sure we take volunteers first whenever we can. Now more than ever, it is important that we focus on Safety. Each day we are challenged by the weather conditions, the flurry of activities and for many of us, new job responsibilities. We cannot allow these challenges to distract us. We must continue to make safety a priority.
We thank you for your patience, hard work,actwv focus on being safe and keeping the system running well throughout 2008. We wish you and your family all the best in the coming year.
Thank you for your time and all that you do for our Company. John Graber will be back with an update to the Infoline next Thursday.
Wednesday, June 19, 2013 04:58:00 PM
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