Terry Scherz' INFOline  |  December 30, 2010
Good morning, everyone. This is Terry Scherz with the ABX Air INFOline for December 30, 2010.

Safety
John Graber reported last week that our safety performance for 2010 was very good. Significant was the reduction in personal injuries. This did not happen by chance. It was a result of sound policies and procedures being followed, and more importantly your commitment to our safety program, your personal safety, and that of your fellow employees. My sincere congratulations and thank you.

One other mention, even though it might seem a bit biased (well, I guess it is) I would be remiss if I didn’t mention that Aircraft Maintenance, still one of the largest departments within ABX Air with approximately fifty Aircraft Technicians working our aircraft each day, reported zero injuries for the entire year! Great job out there!

Operations
On the operational front, we now have two months of flying for our customers, DHL and JAL under our belt. Six days a week we fly between Japan and China. Although we got off to a bit of a rocky start, the operation has stabilized nicely and our performance has been exceptional over the past six weeks. A special thanks to John Chiaffitelli, our Manager of International Line Maintenance, who worked tirelessly from sunrise (and the sun rises very early in Japan) to well after sunset every day for a couple months.

We recently hired or maybe I should say rehired Shig Takahashi to manage the day-to-day activities of our Asian Operation. Shig reports directly to John Chiaffitelli. Shig is based at the Narita airport.

Some of you may remember Shig, as he held a similar position with us a couple years ago when we last operated in Asia. Some of you may not know, but Shig at one time worked for Airborne Freight Corporation. Welcome back, Shig!

We are also in the process of filling a couple full-time ABX International Line Maintenance Rep positions to further bolster our Asian Operation.

Moving on to Europe, about the middle of next month our 767-300, which presently flys for DHL between East Midlands, Great Britain and Cincinnati, will be making a stop in Paris, France on a regular basis.

Who would have thought just three short years ago that we would have such an international presence, flying on almost every continent in the world!

We’ve had the U.S. covered for a long time. We fly to Canada and Mexico, along with too many cities to mention in Central and South America.

We have been to Asia twice, this time flying between Japan and China. The last time we were there, a few years ago, we flew on a regular basis from Japan to several cities in China along with Hong Kong and Thailand.

In Europe, we fly to Belgium, Great Britain and now as I just mentioned, soon we will be flying in France.

And by the way, we have a fellow ABX employee stationed in Tel Aviv, Israel where our aircraft continue to be converted to freighters.

Yes, we are truly an international company!

When you operate in the international arena, it becomes much more challenging. Whether you are a Flight Crew Member, Loadmaster, work in the Flight Department, System or Flight Control, Charter Department, Aircraft Maintenance, even I.T., Accounting and Human Resources, you have to deal with new and ever-changing challenges.

• time zone changes, worldwide, it is truly a 24/7 operation

• language barriers

• different laws and regulations

• sometimes very different cultures and customs

ABX Air is fortunate that we have very talented employees, experienced, and who adapt quickly to changes, dedicated to our success and who look at these challenges as opportunities.

Again, thank you for making it happen day in and day out around the world.

Our People
Lastly, I would like to recognize three recent silver wing recipients from the Aircraft Maintenance Department: Ross Stewart, our Quality Control Specialist; along with Vince Elliott and Scott Pennington, our AOG and Material Specialists.

These three gentlemen have worked tirelessly over the past several months and they do their jobs extremely well. They were crucial to our success in the preparation of again operating in Japan and putting our first B767-300 into service.

That is all I have for this week. John Graber will be back with the Info Line next week to start off the New Year. Have a safe and happy New Year!

John Graber's INFOline  |  December 23, 2010
Good morning ladies and gentlemen, this is John Graber with the ABX Air INFOline for December 23, 2010. I hope everyone is well and ready for the holidays. This will be my last INFOline for 2010. Next week Terry Scherz will have our message.

Safety
I want to look back at 2010, and I’ll start with Safety this week as I do every week.

Though there is always more we can do, in 2010 ABX Air exceeded our Safety goals. We built on our already-healthy Safety system by adding flight data monitoring, we drove down our lost time incidents, and we continued our strong record of compliance. Your attention to detail, preparation and adherence to procedure helped us do all that. Do not stop. We can improve in 2011, and we should.

2010
2010 was a really good year for ABX Air and our people. Looking back, what we have done is truly remarkable.

• We started the year as a company working through the last throes of restructuring. We ended the year having put important notches in our belt.

• We started the year deep in negotiations with DHL, working to define a new long term agreement. In April we announced the new deal, and this fall we said DHL is expanding the flying we’re doing for them.

• ATSG reorganized this year, and ABX played a key role, spinning off our AEFS department into a free-standing company, and providing some key leaders to the new AGS organization. Only months into the new structure, we are seeing a better marketing product for our services.

• In Miami we showed we could adjust to our Customers’ demands, operating many extra sections on demand, and increasing utilization on our aircraft. As we are able to better match costs in that hyper-competitive marketplace, we can grow that business.

• We moved into new quarters this summer, putting all of ABX under one roof again for the first time in over 20 years.

• We saw DHL donate the Wilmington Air Park, and the start of operations under the Clinton County Port Authority.

• DHL hit its first anniversary operating back in CVG, and they are making good progress, hitting their goals for service in the United States.

• We spent the year solidifying relationships with our Customers; and saw those relationships grow, evolve, and provide real opportunity for ABX and those we serve.

• We recalled pilots and mechanics as we added flying.

• We put ATSG’s first 767-300 on our certificate.

• We started flight operations in Asia again, this time for JAL and DHL.

• And we sponsored 50 children from 25 Clinton County families with the Ho Ho House, providing them a brighter Christmas as unemployment in the county hovered north of 15%.

Where a year ago many wondered about our future, today there is no doubt – ABX Air is moving forward as a strong competitor in the international cargo marketplace. Given all that you have accomplished in 2010, it is hard to see how we could do better in 2011 – and we need to do just that.

In the coming year we need to lower our costs. We need to make ABX Air a better place to work for our people. And we need to absolutely delight our Customers. None of that will be easily done – but I’d suggest to you that we’ve done harder things this past year. We’ll figure out how to excel next year.

Thank you all for all you have done for our business, our Customers, and each other. I wish you all a wonderful Christmas, and New Year.

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

Eric Plas' INFOline  |  December 16, 2010
Good morning ladies and gentlemen, this is Eric Plas with the ABX Air INFOline for December 16, 2010. I hope everyone is well.

Industry News
Chile-based LAN AIRLINES says it will significantly increase its freighter fleet. LAN has signed an agreement to lease three 767-300Fs and exercised an option for an additional 777F. The 767-300Fs are from JAL, available because JAL exited the main-deck freight business this year. Once all the aircraft are delivered, LAN will have 12 767-300Fs and four 777Fs, operated by the carrier’s cargo arm LAN CARGO, as well as by various subsidiaries and associated carriers. LAN plans to grow its cargo business 20%.

Changes in the Fleet
We are getting questions about certain aircraft changes as we adapt to the demands of the marketplace and our business.

Here are some things that are happening. We are returning an aircraft to CAM which we had swapped to gain our first 767-300. The 300 is flying for DHL today. There is another 767-200 that CAM is dry leasing to Amerijet. That lease is the third aircraft of the five-aircraft deal we first told you about over a year ago and was formally announced by ATSG on November 3.

In DHL’s CVG operation, we have added 2 additional aircraft to the DHL system this year, and will add 2 more in coming months, increasing by 30% the number of aircraft we’re operating for DHL. Remember, in April of this year we had 13 airplanes flying for DHL, and by the end of February we’ll have 17. We will work hard to secure more DHL business wherever it arises.

We’ve also returned to flying in Japan. No one else has managed to do that once and ABX has done it twice. Thanks to you and your hard work.

Make no mistake, change – constant change – is here and will be a part of our business from now on. We are working under the same ACMI business model as all our competitors, and it includes business flowing into and out of ABX as demand and opportunities ebb and flow.

I’ve worked for ABX over 36 years. I’m responsible for charter sales for our business. Like everyone, I’ve worked hard, and sacrificed much to stabilize our business. It seems to me that we have turned a corner in that we have a good base to work from, but that is only a small piece of the potential of ABX. We will continue to pursue profitable opportunities and work everyday grow the business.

Christmas Cheer
This holiday season, the employees of ABX Air and AEFS adopted 50 children of displaced ABX Air workers thru the Clinton County Ho Ho Shop. To help make their Christmas season brighter, our employees raised over $1,400 to help purchase gifts, and many employees donated additional gifts in kind.

Today we delivered 25 Santa bags for the 50 children to the Ho Ho Shop. In total, our employees donated over 350 toys, items of clothing, and other gifts for the kids of displaced employees.

In addition, employees donated clothing, food, and sundry items for the Wilmington Homeless Shelter and these items were also delivered today.

We would like to thank every employee that helped with this worthwhile project. Your generous contributions will help make a difference this Holiday season and represent the best spirit of taking care of Our People.

Special thanks to Jean Radcliffe in Purchasing and Beth Allen in Human Resources for organizing this event. Job well done.

Charter update/Operations support
As they say Tiz the season! The charter business has been as brisk and changing as the weather! Our customers needs have been very demanding with extra trips, reroutes and changing schedules around the globe. It takes a special team effort to keep up and deliver for them and we have a special team. Thanks to all in the operation center from crew schedulers, maintenance, flight, and system control. All of these folks are working long and hard hours to make it happen and it is much appreciated.

In particular I would like to point out our folks in the MIA base which stays at a full boil this time of year. Here our flight crews and professional loadmasters are accustomed to change but the Christmas season has it's special challenges. At least the weather is nice!

That’s all I have for this week. Stay safe, stay warm and give from the heart!

John Graber's INFOline  |  December 9, 2010
Good morning ladies and gentlemen, this is John Graber with the ABX Air Infoline for December 9, 2010. I hope everyone is well.

Safety
Starting with Safety, winter has solidly arrived in the Midwest, around the nation, and around the world. Cold temperatures hammer our CVG hub while snow blankets much of the rest of the nation, and Europe. We prepare continuously to operate Safely in conditions like these, but doing so requires your attention to detail. Give yourself the time you need to Safely negotiate winter hazards in parking lots, on the ramp, and in our aircraft. Seldom does the exotic issue hurt someone. It is the slip and fall that will lay you out. Don’t let that happen to you or your buddy this winter.

DHL Update
Joe Hete, Quint Turner and I spent part of this week with DHL’s senior leaders as their guests at a DHL planning meeting in Miami. We had the chance to spend time with DHL Express’ CEO, Ken Allen, and their COO, Charlie Dobbie. Both these gentlemen are “Red and White” DHL guys – they’ve been with DHL from its earliest days. They know good service, and both went out of their way to compliment ABX Air on the service we provide DHL. I gave them every opportunity to complain about something – I always ask what we can do better for our Customer. They didn’t have a single complaint. Rather, they paid us what I think is a high compliment – they called ABX “their airline partner.” And they meant it.

Operations Support
We faced a real challenge Wednesday morning during peak hub operations. Something went wrong in the computer room about 3:30 in the morning and we lost our ability to generate flight plans and aircraft releases. As you know, without that critical paperwork, nothing moves.

Flight Control, CVG Operations, and IT all jumped into the problem, working several parallel tracks to keep the issue from impacting operations and delaying service. In Flight Control, Ken Tomaric, Ron Spanbauer, Tom Koole and David Kircher bypassed the failed system, creating flight releases using an alternate method. Kerry Barker coordinated new paperwork packages with Alex Kosch and Tim Pinkerton in CVG. Alex and Tim took the releases to our crews, who were in the aircraft, waiting and ready to go.

All the while IT’s Darren Reed and Mark Spicer were working furiously behind the scenes to solve the base system problem – which they did in less than an hour.

This is a real success story. Faced with the outage of a key system at the peak of operations, teams from across the company came together and worked out a way to preserve service. Our pilots, flight control, IT and CVG operations professionals really made a difference for our Customer, and you did it Safely.

Thank you all very much for your responsiveness and hard work. Nice job.

Nice Recovery
Today we had a broken 767 in San Juan, Puerto Rico. There was a hydraulic leak way up in the aircraft’s rudder. Getting to the part was our first challenge, and our second was finding a replacement to make the repair. San Juan is not the best place to find spare 767 material, but we didn’t have to look there because ATI, a sister ATSG airline, had a plane headed that way. Our Maintenance Control professionals got our part on the ATI plane, shaving hours off the next-best recovery alternative. My thanks to our experts in Maintenance Control, and to ATI.

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

Steve Janasov's INFOline  |  December 2, 2010
Good afternoon, this is Steve Janasov with the INFOline for December 2, 2010.

Safety
As we enter into the full swing of the holiday season it’s prudent to keep safety as our foremost consideration on the job and on the commute. Winter is suddenly upon us, and supervisors have been reminded to review the ABX Air Emergency Operations Policy with their employees. Wilmington (ILN) employees can contact the ABX Air Weather Hotline at (937) 382-5591, press # and then dial 66397 (6NEWS) for additional information on delays or operational closures. Outbased employees will follow their local airport of operation procedures. The bottom line is; we will maintain normal operations whenever possible, so please check the forecast and allow for extra time to report to work when needed. Make your best effort to plan ahead, but never operate at an unsafe speed to be on time. Dress appropriately for the weather when reporting to work, and wear winter appropriate shoes for your commute even if you work in an office environment.

Employee Recognition
Congratulations are in order to two ABX Air Maintenance employees, Fasiel Flash and Jack Kondratick, who were recent recipients of the ABX Air Silver Wings of Excellence Award for outstanding customer service. The awards were presented earlier this week by Terry Scherz, Vice President of Maintenance. This is ABX Air’s most prestigious award and recognizes those employees who perform at the exemplary level. Congratulations to these outstanding employees from all at ABX Air for a job well done!

In addition, the following employees are celebrating significant anniversary dates this month. With 15 years of service are Brian Cantele, James Mullis, Murray Jones and Vic Maningham. At 20 years of service we have Terry Hubbard, and celebrating the silver 25 year anniversary is Daniel Weiser. Congratulations to these employees for their service and for achieving these milestones.

Air Park News
The Wilmington Air Park has begun the process of replacing Air Park Access Badges and Aircraft Operations Area (AOA) Access Badges for employees based at ILN. The badges are issued by the Clinton Country Port Authority. All ILN employees should have completed and turned in a Badge Application Form at this time. If you have not done so, please see your supervisor as soon as possible. Depending on your level of access, additional online computer based training must be completed for your badge to be issued. If your paperwork and training requirements are complete, your new badge should be available within the next 7 to 10 days. If you have questions, please contact your supervisor or one of our Human Resources representatives.

Industry News
This past summer the FAA Administrator and the President of the NATCA (National Air Traffic Controller Association) created the ‘Partnership for Safety’ with the goal of identifying air traffic safety issues before an aircraft accident or incident occurs. Four major pilot/controller communications problems were identified and include Hearback/Readback Issues, Standard Phraseology, Similar Sounding Call Signs, and the Timely Sharing of Critical Information. The Air Traffic Organization is currently conducing an Airline Outreach for all Part 121 operators, similar to the Call to Action conducted a few years ago that successfully improved safety in the area of runway incursions. The goal of the Airline Outreach is to emphasize proper ATC communication procedures on both sides of the microphone. This information has been provided to Flight Standards and will likely be incorporated into the 2011 recurrent training programs.

In other news, the International Civil Aviation Organization (ICAO) has approved new cargo screening guidelines for 190 member countries that will focus on security throughout the cargo supply chain. Member countries will receive a draft of the proposed changes and have an opportunity to respond before the updated guidelines are made public. The guidelines are thought to contain more stringent rules on air freight screening, new criteria for identifying potentially risky cargo, and better intelligence sharing. The Transportation Security Administration (TSA) has jurisdiction over all cargo entering or leaving the US and its territories. Any and all TSA Security Directives issued are carefully monitored and complied with by ABX Air and our customer forwarders.

The Season for Giving
The holiday season always provides opportunities for us to be thankful, count our blessings, and be charitable to worthwhile causes dear to us. There are plenty of opportunities this year as the annual ABX Air Charity Drive remains in full swing. To contribute, simply fill out a pledge form located on ABXnet/forms and follow the online directions. Beneficiaries include the American Cancer Society, American Heart Association, United Way of Clinton County, and the Clinton County Food Pantries. For folks at ILN there are opportunities to contribute to the local Homeless Shelter, Community Action, and the Ho-Ho Shop (where the children of selected former air park families will receive gifts). There are barrels placed in heavy traffic areas within the ABX Air buildings at ILN for your donation. Please see Holly McCammon or Beth Allen for more information. Winston Churchill once stated, “We make a living by what we get, but we make a life by what we give,” so please consider giving generously.

That’s all the news I have for today. On behalf of the ABX Air Safety and Environmental team (Holly, Mike, Brian, and myself) please have a wonderful and safe holiday season! John Graber will be back with the next INFOline on December 16. Have a great day.

John Graber's INFOline  |  November 25, 2010
Good morning ladies and gentlemen, this is John Graber with the ABX Air INFOline for Thanksgiving Day, 2010.  I hope you are all well.

Safety
It may be a little cliché on Thanksgiving Day, but I’ve been hearing more about it than I ever remember hearing in the past, so I want to start today with Turkey Safety. Apparently bacteria grows much faster on leftover food than I ever thought possible. And it grows especially quickly in the warm, humid kitchens where so many Thanksgiving turkeys are baked. The point here is that you don’t want to leave your leftovers on the counter in the kitchen any longer than you have to – you need to get the bird carved, packed, and back in the ice box. Don’t delay. Don’t take chances this holiday. 

Compliance
I met with two of the senior FAA leaders from the Detroit Flight Standards District Office this week. Bob Dorn runs the team that oversees us now, and Billie Steffey is our Principal Avionics Inspector. Both gentlemen have been on our ticket for a number of years. They are favorably impressed with the stability they’re seeing in our company and in our operations.

I also had the opportunity to meet with our internal audit experts this week – our ground training, maintenance, Safety and flight operations auditors. Checking on the quality of products and processes has always been an important part of our compliance program here – and we have an excellent audit program. We are moving forward with our third International Air Transport Association Operational Safety Audit (IOSA) – next year, and our auditors are working on the plan to make our third iteration as successful as our first two have been. There is a lot to do between now and our renewal, and after talking to our audit leaders, it is clear to me we’ll get it done to a very high standard. 

Thanks
I’m recording this message on Thanksgiving day. We have so much to be thankful for at ABX Air this year. Jim O’Grady, our Director of Flight Control, wrote a Thanksgiving message to his folks last week. Jim did as good a job as I’ve ever seen of thanking our folks for all that they’ve done. I’m going to borrow much of Jim’s message here. He said, “It has been a very busy year. While there have been a lot of distractions and concerns, there has been a lot to be thankful for as well…you have my heartfelt thanks and gratitude. The unselfish work and effort that all of you have been a part of has provided a lot of successes and opportunity.” 

Jim went on to list many of the things we’ve done this year: “Multiple transatlantic ops, ETOPS 120, ETOPS 180, back to Asia, Africa Ops, Europe Ops, added Mexico ops for DHL, adding flights for DHL, added flights for TNT, DoD audits, CRAF flights, charter ad hocs to Spain and Italy and Bahrain, IOSA audits, volcano eruptions, JCAB re-approval, FAA inspections, airport vendor renegotiations, moving office locations, Sabre program upgrades, -300 certification… taking over the Jep worldwide revisions, adding countries in Central and South America, creating a database for permit oversight, creating a new ABX performance report and database, adjusting to the new DHL CMI agreement…” 

Jim closed his note by telling his folks, “many of you are getting calls and picking up extra tasks throughout the week, during your off hours… None of the accomplishments that we have enjoyed as a department and a company could have been accomplished without all of you. Also deserving thanks, gratitude, and recognition are your families, who have all given up time, once theirs with you, to share you with us. Thanks to you and your families for everything you do every day. 

I echo Jim’s sentiments. Thank you all for all you have done for our company and each other this year. And while we’re talking about things to be thankful for, take a minute to remember all the thousands of men and women out on the front lines. They’re thousands of miles from home and family, standing some really desolate posts. Thank them and their families for their gifts to all of us.            

That’s all I have for this week. Please have a wonderful and Safe holiday. Drop me a line with any questions or comments you have. My email address is john.graber@abxair.com.  

John Starkovich's INFOline  |  November 18, 2010
Good Afternoon. This is John Starkovich with the ABX Air INFOline for November 18, 2010.

Safety
While we have all enjoyed the nice weather that we have been having, it is the time of year again in which being prepared for inclement winter weather is important. Are you and your vehicle prepared?

• Has your car been winterized and are your tires and windshield wipers in good shape?

• Do you dress appropriately so you do not get sick and so you can safely navigate through ice and snow?

• Do you carry a working flashlight and winter gear in your vehicle in the event that you do experience unanticipated car problems?

Bottom line folks, as friends and co-workers, we want everyone to stay safe and healthy. If you take the time and the necessary precautions, you will benefit in the long run.

767-300
ABX Air is pleased to announce that our first Boeing 767-300 in the fleet is now at Cincinnati (CVG) and will be placed into revenue service for DHL tomorrow. It will be operating in transatlantic service between East Midlands, England and Cincinnati (CVG). This is a major milestone and another first for ABX Air. It is also important for another reason. Just like all of our customers, DHL is competing to meet the demands of the marketplace by placing this aircraft on this route. We must be responsive to those changing needs. We must provide reliable on-time service; be flexible and cost effective; and we must adapt to meet our customers' needs as those needs change. If we fail to do so, the reality is that our customers, including our single largest customer DHL, may look to others to provide the services that we currently provide for them. Put simply, failure puts our job security at risk. In the time that I have been here, I can say that I have not known ABX employees to fail any challenge that they take on. You did it again with the 767-300, and I am confident that we will continue to do what needs to be done to be a success.

Thanks to everyone for all of the time and effort it took to get this aircraft into service. Terry Scherz and the Maintenance Department deserve special recognition for their part in getting it accomplished. Thank you.

2010 Charity Drive
This week we are kicking off the Annual Charity Drive. For those of you who have contributed in the past, we thank you and respectfully request that you continue that support and, if possible, consider increasing your contribution. For those who have not participated in the past, we ask that you thoughtfully consider contributing this year. We are trying to increase the percentage of ABX Air employees who are giving. Whether it is $1.00 or $5.00 or more, we appreciate any amount that you are willing to share with those less fortunate than we are.

This year a new option has been added to the mix. If you like, you can designate the food pantries here in Clinton County as a recipient of all or a part of your contributions. ABX Air employees are noted for their spirit of generosity to those in need. We appreciate and thank you for that spirit.

On the Horizon
There are a number of items that are currently in the process of being planned and implemented, so the following is a preview:

• Paid Time off: ABX Air is going to a Paid Time Off (PTO) program in 2011 in lieu of the current holiday and vacation policies. Optional employee informational meetings are scheduled for Monday, November 22 at 1:30 and 2:30 p.m. Another session will be scheduled and held after the Thanksgiving Holiday. Please plan to attend one of the meetings if you can.

• ILN Airport Badges: You have likely noticed that your DHL Air Park badges have a December 2010 expiration designation. Plans are currently in progress to issue replacement badges prior to January 1. The Port Authority that now owns the air park has tasked AEFS to head up the re-badging effort, and you can expect to hear what needs to be done to turn in your DHL badge in exchange for the new airport access badge.

• Open Enrollment: Just a reminder that November 30 is the deadline for getting your changes in for your benefits elections.

That is all for this week's INFOline. Thank you for all you do to make ABX Air a success. Take care.

John Graber's INFOline  |  November 11, 2010
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for November 11, 2010.

It is Veterans’ Day. If you have a friend or loved one wearing the uniform, you think of them often, but today is the day our nation sets aside for everyone to remember our soldiers, sailors, airmen and marines. We have much to thank our veterans for. When I look at my son, and think of the freedoms he enjoys, my next thought is to thank our veterans who make that freedom possible.

World War I – called “The Great War” at the time – stopped with a temporary cease fire on the eleventh hour of the eleventh day of the eleventh month in 1918. The Treaty of Versailles officially ended the war seven months later in June 1919, but November 11, 1918, became what most people called the end of “the war to end all wars.” Allied nations began commemorating Armistice Day in 1919, and in the US, President Eisenhower signed Veterans Day into law in 1954.

We all have so much to thank our veterans for. Today especially, I would ask all of you to do just that. Thank our veterans for their service, and their sacrifice. You hear a thousand clichés but one really is true – freedom is not free. Thousands of young American men and women pay for it everyday.

Safety and Compliance
In Safety this week, I want to talk about attention to detail. We run wake up checks on our aircraft a few hours before the operation, to make sure everything is ready to go. We exercise key aircraft systems, looking for problems, so we have time to fix things if we find something wrong. Our professional technicians running those checks routinely find nothing. When you run the same check over and over without finding a problem, it would be easy to start cutting corners, easy to not look as hard.

I look at the reliability reports every day, and let me tell you, it is not unusual to find an issue that needs attention somewhere in the system. Our mechanics’ attention to detail pays off over and over again. We find a small leak, or we see a nicked tire. We see something that needs adjustment. And we find these things early enough to allow us to make careful, deliberate decisions about what to do.

This is a great example of the power of a systemic Safety program. And it all starts with the rigorous, iterative process our technicians run before every operation. Thank you to all of you doing that critical job every day.

Miami Employee Conference Call
We held two conference calls for our Miami employees this week. It is hard to find a good time when everyone can attend a meeting, so rather than take a bunch of our leaders to MIA, this quarter we tried the conference call format. I had Rich Corrado, President of AGS; Terry Scherz, our VP of Maintenance; Bob Gray, our VP of Flight Ops; John Starkovich, our VP of HR; Eric Plas, Manager of Charter Sales; Gayle Paetzel, AGS’ Director of Sales; Jeff Walling, our Manager of Benefits; and Jeremy Heard, our Manager of Airport Affairs on the calls to answer questions. We recorded the event so you can listen to it when your schedule permits, and we’ll publish the link to the Miami call today, but I’ll review a couple of the highlights here today.

We got a question about how we decide which aircraft to send to Miami. A pilot said he’s heard that we try to steer problem aircraft to Miami. Eric and Terry spoke to that point, and said it just isn’t true. Which tails we put where is often an interesting problem to solve. We have light weight and heavy weight freighters. We have some equipped for European operations, and others set up for Mexico. Some planes can operate in the DHL network, but nowhere else, and still others are not on the permits for every nation we serve. There are lots of reasons a tail with a broken APU ends up in Miami – and we work hard to keep that from happening.

Another question on the call was about Amerijet getting another plane. The caller said the rumor is that they are taking three airplanes. That is not correct. Amerijet is leasing one airplane in January from CAM – exercising the first of three options for a 767. As owner of the aircraft, CAM is looking to balance its portfolio between ATSG and outside companies to manage risk and create strong revenue streams.

I always enjoy talking to people. Thanks to all of you who joined us on the calls. We’ll set up another one for our CVG employees soon.

That’s all the news I have for this week. 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  |  November 4, 2010
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for November 4, 2010.

Safety
Starting with Safety this week, DHL has started practice deicing in our CVG hub. We’re really good at the parts of deicing operations we’re still responsible for – but this is something that demands our complete attention. It goes without saying that our aircraft need to takeoff free of contamination. We’ll do that every time. What I worry about is people hurrying and getting hurt. Please make sure you give yourself the time you need to do your job Safely during icy conditions. You have to slow down. You have to follow procedure. And you need to watch out for your buddy. Glycol is slippery. Use three points of contact when you’re walking on ships stairs, and make more than one trip if you have to carry something up or down. Get through this deice season in one piece. If all of us do that, we’ll have a great winter.

ATSG News and 3Q Results
Our parent company, ATSG, reported its results for the third quarter today, and announced new business – much of it from us here at ABX. You’ll want to go to the ATSG web site for all the details. There is too much for me to speak to it all on the INFOline, but I’ll cover some of the highlights.

ATSG reported its pre-tax earnings from continuing operations were $16.7 million for the quarter, up 259 percent from the third quarter of 2009, and up 5 percent from the second quarter of this year. Net earnings from continuing operations were $11.4 million, up 299 percent from last year, and 15 percent from the second quarter of 2010.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) from continuing operations were $44.0 million, up 43 percent compared to the third quarter of last year. ATSG’s operating activities generated $81.7 million in cash flow in the first nine months of 2010, up 65 percent from last year.

We’re two quarters into our new aircraft leasing and operating agreements with DHL. Remember, the new DHL deal started March 31. Under it, DHL leases 13 767-200 freighters for seven years, and we operate them in DHL’s U.S. network under a separate five-year Crew, Maintenance and Insurance (CMI) Agreement. ATSG reported solid returns from that business.

Joe Hete said, “Our second and third-quarter results demonstrate the cash-generating power of our new business model, which emphasizes long-term dry leases of medium-size widebody freighter aircraft, augmented by solid returns from an extensive array of operating and support services.”

ATSG also announced several new lines of business, and ABX Air is flying much of it. They officially announced our return to Japan. On November first we started flying from Japan to China for Japan Airlines, supporting DHL’s service in Asia. Many of you have known about this effort for weeks, but we could not discuss it publically until now. The Japanese Civil Aviation Board has approved our flying for a flag carrier out of Japan. This is our second JCAB approval to fly like this – permission no other US carrier has had even once. Asia is one of the hottest freight markets in the world today. Being able to go back there in a relationship with DHL and JAL is a good thing for our company and ATSG. Thank you to everyone who has worked so hard to make this happen.

ATSG also announced the beginning of our new transatlantic ACMI service for DHL between East Midlands in England and CVG. We’ll start that flying on November 7th in a 767-200, and transition to our new 300 about a week later. This is another huge effort on the part of our maintenance and operations teams. Combined with our Japan efforts, we’ve spent thousands of hours investing in capabilities that allow us to expand our business.

Another ATSG announcement is that we’ve started flying the first of four of DHL’s own Boeing 767 freighters in its U.S. network. We’re doing that under terms of the CMI agreement. These four aircraft are in addition to 13 767s we operate now, and represent 31% growth in our DHL CMI flying. DHL could have had other carriers fly those planes, but they chose us. They chose us because we deliver for DHL – and we have for a long time.

Amerijet’s exercise of the first of its three options for more 767-200s was another part of ATSG’s announcement. In January Amerijet will sign a seven year lease with CAM for a 767-200. ABX Air is operating that airplane today, and it will leave our service. It is important to remember that ABX Air included dry leasing aircraft as part of our original diversification plan in response to DHL’s restructuring back in 2007. We are still executing on those plans, and that execution is a big part of why we’re still here today.

In summarizing the announcements, Joe said, “The demand for our cargo aircraft, and especially for our services and support as 767 freighter operators, is even greater than we forecast when we committed to convert 14 of our 767-200s to standard freighters, and when we committed to purchase more advanced 767-300s earlier this year.” He added, “We are already working toward firm commitments for our 767-300s, the first of which is expected to enter service toward the end of the first quarter 2011.”

I encourage all of you to listen to the recording of the ATSG earnings call. You can find a link to it on the ATSG web site. Read the news releases. When you do, you’ll see that our company is part of making a great quarter for ATSG. As the global freight market recovers, ABX and ATSG are working hard to position ourselves to profit from that recovery. And we’re doing a good job.

That’s all the news I have for this week. 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  |  October 28, 2010
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for October 28, 2010. I hope everyone is doing well.

Safety
Starting with Safety this week, I want to talk – again – about following procedure. A supervisor in one of our sister companies had his fingers caught between two pieces of machinery last week. Following procedure would have saved him from serious injury.

Safety professionals talk about a phenomenon called PINC – Procedural Intentional Non-Compliance. It is when someone knows what they are supposed to do, and makes a conscious decision not to. People don’t follow procedure for many reasons – most common is they are in a hurry. Another prevalent reason is they don’t think anything will happen if – just this time – they don’t do it the way they’re supposed to.

It is hard to choose to follow the rules all the time, and that is what you have to do anyway. Safety rarely comes down to the big choices you make – but it often swings on the small ones. Pretty easy to say you won’t drive 90 miles an hour on the icy back road to work. Harder to decide in advance to start out 30 minutes early on the icy mornings so you aren’t in a hurry in the first place.

We need you to make the compliant decisions all the time, and we will always support those decisions. You will not get in trouble at this company for following procedure. We demand that you do just that – and we will applaud your efforts.

767-300
As you read this, our new 767-300 is in hangar 1004 in Wilmington. Captain Mike Woodford brought it in last night. Its arrival is a major milestone in the process of adding the next generation 767 to our certificate. We intend to operate it in transatlantic service starting next month. I just walked the airplane and it is completely opened up for its shop visit. Phil Flowers and our implementation team – including our AMES partners – are doing a great job of fielding the airplane. Many thanks to all of you who are giving us so much of your time to make this happen.

DHL News
DHL is expanding its domestic product line. It will soon start offering deliveries by noon from the US to 99 worldwide markets, and DHL Customers will be able to ship items to the US by noon from 600 locations around the world. This improves on DHL’s previous end-of-day guarantee. DHL is charging 5 to 35 percent more for this earlier service, depending on the location. They are targeting the finance, hi-tech, and life sciences industries.

2011 Benefits
Next week we’re mailing you information about ABX Air’s 2011 benefits. We are going to continue offering the same coverage options we have in the past, and we are going to continue the match formula of the company paying 75 percent of the cost of the plan, and our employees paying 25 percent. Most of us are going to see a big increase in medical insurance costs next year, because our group’s costs will increase over 50 percent.

You need to read the program material carefully, but I want to summarize the impact of these costs on our Enhanced PPO Plan for an employee and their family. ABX Air will pay an additional $550 dollars a month – or $6,600 more a year – to cover you and your family on the Enhanced PPO. The employee will pay about $184 more a month for your 25 percent of the cost of that plan.

These big cost increases are driven by many factors. Some of those are:

• We self-insure for our health insurance. All of us pay, as a group, for the health care coverage we all use. Those costs are way up year-over-year.

• The demographics of our group aged several years as we lost hundreds of the younger employees who worked in our sort. Younger people don’t use as much health care. The change drives up the average cost of healthcare for each of our employees.

• The new health care law, the Patient Protection and Affordable Care Act of 2010, mandated expanding the coverage we provide. Among other things, the new law requires we eliminate a lifetime maximum cap on coverage, and it requires we insure your children up to 26 years old. Complying with the new law drives up our costs.

We are very respectful of the issues cost increases like these create for you and your families, but we hear from many of you that maintaining the coverage we have is important to you, so we have chosen to do that, even at these higher rates. You need to evaluate all the options available to you, because there are choices you can make to save money on health insurance. Read the material, and make sure you sign up for the coverage that best fits you and your family’s situation.

Yard Sale
ABX Air will sell lots of surplus this Friday, October 29, from 8:30 a.m. to 5:00 p.m. in the back of Building 2. We’ll sell filing cabinets, desks, work stands, televisions – you name it. We’re pricing everything for a quick sale. Bring cash, and bring your truck; you have to take it with you when you buy it. This is an ABX employee sale, but your friends and family are welcome.

That’s all the news I have for this week. 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  |  October 21, 2010
Hello, this is Tammy Voss, the ABX Air controller, with the ABX Air INFOline for October 21, 2010. I hope everyone is doing well.

Safety & Compliance
As part of our preparation for winter operations at Wilmington (ILN), ABX Equipment & Facility Services (AEFS) has performed preventative maintenance on all heating units and facilities. In addition, they have secured all of the unoccupied buildings. Due to the reduced scope of operations at the Air Park it has been necessary to shut down unoccupied facilities and property areas not in use. As a reminder, please do not enter any of the unoccupied buildings without AEFS approval. John Graber wants to make sure everyone gets this message. You are not allowed to go inside the buildings we’ve closed on the air park.

We cannot emphasize the importance of Safety and Compliance enough. If you identify an issue, point it out immediately and follow up to insure that the issue is addressed.

People
We have several employees celebrating their anniversaries this week. We would like to congratulate Patty Pennewitt, Project Leader Information Systems, for 20 years of outstanding and dedicated service to ABX Air; and Janice Sheets, Payroll Staff Accountant, for 15 Years of outstanding and dedicated service to ABX Air.

Performance
So far this month, our on-time performance has been 99.03 percent. Keep up the excellent work! Putting numbers like that together day in and day out is a huge accomplishment. Thank you for all you do every day.

Open Enrollment for Non-Pilot Employees
Open Enrollment for ABX Air employees who are not covered by the collective bargaining agreement will begin the week of November 3, 2010. Over the past several months, there has been significant news coverage of the dramatic increase in health Care costs in the United States. With all of the media attention and the recent passage of health care reform, it will come as no surprise that ABX Air health care costs continue to climb. We are no different than hundreds of other companies. This year our health care costs are going to be higher than in the past. Please keep an eye out for the packets and carefully consider the options provided. We will mail your 2011 information packets to your home and you can also find the information you need online at the ABX Air benefits web site at www.myabx.com/benefits. 

Flu Shots
On Wednesday, October 20, a Walgreens pharmacist was on site to administer flu shots at the Air Park Transition Center. Outbase employees and those unable to attend this clinic will be issued vouchers upon request to obtain a flu shot at their local Walgreens location. The cost will be $15.00.

Computer System Transition
The Information Systems group has been very busy this past week completing the installation of the new main computer and the transition of the file servers to the new hardware. This has been a very complex task and we congratulate them on a job well done. We all take our computer system for granted because it works so well. Mark Spicer and his team put in hundreds of hours making this modification work. Thanks so much.

Asset Contributions
ABX and ATSG recently contributed a large number of excess cell phones to the Cincinnati Zoo. Cell phones contain coltan, an ore found in gorillas’ habitat. Recycling cell phones preserves the gorilla habitat and raises money for the Zoo’s Conservation Fund. Cell phone collection boxes are located at the Zoo's main ticketing office and at the Gorilla World exhibit. For more information please visit their website at www.cincinnatizoo.org/savingspecies. 

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  |  October 14, 2010
Good evening, ladies and gentlemen. This is John Graber with the ABX Air INFOline for October 14, 2010.

Safety
Starting with Safety as I do every week, let’s talk about procedure. The FAA last week published an advisory regarding lithium batteries. They ask us – and all carriers – to emphasize our procedures for carrying lithium batteries to all employees – this after the UPS crash last month. It will be months before the cause of that crash is known, but there were lithium batteries on board, and there was a fire in flight.

Lithium batteries pose fire risks if not handled correctly. So do other things we carry. We can safely handle all kinds of dangerous goods because we follow a strict set of guidelines for accepting, packaging, identifying and handling hazardous material. We train routinely to the procedures that keep our operations Safe. Follow your training.

We will send you special emphasis material soon, but what you need to know now is that our procedures, properly followed, will keep us Safe. Don’t deviate from your training. If you see an unsafe condition in our operation, you have the responsibility – and the authority – to make sure we’re Safe and compliant. I will always support your efforts to keep us Safe. Don’t play tricks with this to screw things up. That’s stupid. I won’t appreciate that at all. But don’t let anything stand between you and our Safe operations.

STAR
We flew 98.94 percent on time in September. That means we attained our second-highest possible performance goal for the month. Every eligible full-time employee earned a $100 bonus, and eligible part time employees earned $50. We’ll pay those bonuses in your October 22nd check. September is the 6th month in a row we’ve performed well enough to earn a bonus. That is a really great job. Thank you, and keep up the good work.

767-300
I want to thank all of you fielding our new 767-300. Terry Scherz and Bob Gray are supervising the effort, but Phil Flowers and Dan Henderschott are leading our cross-functional team that is putting the new jet on our certificate. We intend to start flying the new jet next month. Our Customer needs the 300 in service now. It is a very aggressive schedule, so lots of people are working evenings and weekends to give the Customer the service they want.

This new jet is a good example of what our business is going to look like going forward – flexing to meet what the demanding marketplace requires. We fly the largest 767-200 freighter fleet in the world – and that makes us the carrier of choice for many Customers.

But things are changing. There are 767-300 freighters coming out of modification everywhere now. With over 600 767-300s built, there are going to be a lot of freighters in the marketplace, and we will not own that space if we can’t move as fast as the market demands, and fly at a price the market will pay.

Hitting our goals on this first 300 in ATSG service is a good exercise for ABX Air, and a great example of what the marketplace can expect from ABX Air. If you see our team at work, thank them for all they are doing to help us transition to this next airplane in our future.

Industry News
In a sign of the improving market, both FedEx and UPS have announced rate increases. In January, FedEx will raise shipping rates for FedEx Express by 3.9% for U.S. domestic and U.S. export products. They are raising their average rate almost six percent, but reducing fuel surcharge levels about two percent. Additionally, LTL trucking segments FedEx Freight and FedEx National LTL are raising their rates 6.9% on November first. And this month UPS is raising its rate on its LTL trucking product, UPS Freight, about six percent. Both companies are reporting excellent results in 2010.

At the same time, US Postmaster General John Potter said the Postal Service would report a loss of $6 billion for the fiscal year that ended in September. Potter said that unless the Postal Service gets regulatory relief, it likely will not be able to meet its financial obligations in fiscal year 2011. The government has struggled with the cost and revenue issues facing the post office, but media reports indicate things could come to a head next year.

That’s all the news I have for this week. 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.

Jan Woolums' INFOline  |  October 7, 2010
Good Morning, everyone. This is Jan Woolums, Director of CVG Operations, with the INFOline for Thursday, Oct. 7, 2010.

Safety
Our September Safety Report will not be published until next week, but Manager of Safety Mike Lueck was glad to share that Aircraft Maintenance again reported no OSHA cases for September, keeping them at zero for the year. Staying focused and being safe is obviously something this group does very well. Great Job! We can all learn from your example.

Steve Janasov tells us we've had an error pop up in our Psion weight and balance computers. One of them created a load plan with the stabilizer trim setting out of limits. Our flight crew caught the error. Great job. The problem was a complicated, technical issue. A server would not let an updated data file get to the Psions themselves. The problem only impacted one of our tail numbers, and it has been corrected, but this event demonstrates why we check and cross-check our loading and calculations. Errors are going to occur in complex operations like ours. We have two jobs: first to cut the number of errors to the minimum possible, and second to mitigate the results of those errors when they do occur.

We don't have a lot of weight and balance errors, and we found the error and corrected it before we flew. Our check/cross-check system worked.

Thanks to our flight crews for your vigilance, our loadmaster staff for their expertise in solving the load problem, Joe Freese in Engineering for squaring things away, and our Director of Safety Steve Janasov for making sure our processes are working the way they are supposed to.

October service anniversaries
Each week we recognize employees who are celebrating 10, 20, 30, and amazingly a few with 35 years of service with our company. What an accomplishment! This week is no different. I would like to start by congratulating Mike Burton, AEFS Fire Chief, for a very successful and eventful 30 years with ABX Air. Also congratulations for 20 years of service to Patty Pennewitt from our IS department and Jeremy Heard, Supervisor of Airports. Janice Sheets, Staff Accountant, and John Brown, IS Project Leader, are celebrating 15 years of service. This is a total of 100 years of experience, and knowledge that can't be measured. Again, congratulations, and thank you for your dedication, support, and commitment to ABX Air.

CVG / Winter Ops
The unexpected drop in the temperature over the weekend caught most of us off guard and scurrying for warmer clothes.

That's not the case for the ABX Air and DHL staff responsible for the deice and winter operations in CVG. The thought of winter for them began in late summer. Terry Scherz (ABX Air), Bob Boja (ABX Air Flight), Steve Elkins (DHL), and Carson Latham (DHL) spent hours analyzing last winter's ramp and deice operations. They identified the areas that went well and the areas that needed to improve or be completely changed for our 2010 winter season. DHL appointed Dan Looper to supervise their deice program. Dan was part of the deice team last year in CVG working closely with Kent Stewart. Prior to Dan accepting a position with DHL, he was a trainer on the ABX Air ramp for several years. With all the changes and adjustments, the outlook for the 2010 deice/winter ops is good. We can't stop the changing of the seasons, but having a good plan of action to deal the adverse conditions can certainly lessen the impact.

Recently, the FAA approved DHL's proposal to realign the parking on the main ramp in CVG. This will gain a parking spot on the ramp and one less aircraft that has to go to the remote pad for deicing. The realignment also will lessen congestion on the DHL 2 at departure time. Any minutes that can be gained at departure time is a plus, but in adverse weather conditions those minutes can be crucial to an operation. This change was communicated to several of the ABX Air crewmembers yesterday with a scheduled implementation date of Oct. 11. We received notification late yesterday afternoon from DHL that we would be pushing this back one week. We will now target Sunday, Oct. 17 for the initial test and the full ops on Monday, Oct. 18. This will allow for the Hub Ops team to fully prep for the upcoming change and will allow us time to effectively communicate the alignment to the crews.

An updated diagram of the ramp parking will be posted on the CVG web site and on the communication board in our crews' briefing areas.

CVG SIDA Badges
The Cincinnati/Northern Kentucky International Airport (CVG) has begun issuing new Security Identification Display Area (SIDA) badges for all DHL vendors, ABX Air and AEFS employees working in CVG. Our current ABX Air and AEFS CVG badges will expire in November 2010. DHL is requesting that all vendors have their CVG SIDA badges reissued no later than October 24, 2010.

In order to receive a new CVG SIDA badge to replace your expiring badge you must:

• Visit the CVG ID Office prior to October 24;

• Present your old CVG SIDA badge and two forms of ID (any combination of driver’s license, passport, birth certificate or social security card); and

• Ensure your new CVG SIDA badge is the appropriate type that you had before and has the US Customs hologram (again, only if you had one before).

CVG Badge Office hours: Re-badging can be completed at the CVG ID Office Monday through Friday between the hours of 8:00 a.m. - noon and 12:30 p.m. - 4:00 p.m. SIDA badges not exchanged for new ones will no longer work starting November 1, 2010.

CVG SIDA Training: In order to obtain the new SIDA badge, all employees or contractors who took SIDA badge training prior to August 1, 2009 must retake the training. SIDA training can be completed through the DHL training department or at the CVG ID department Monday through Friday between the hours of 8:00 a.m. - 11 a.m. and 1:00 p.m. - 4:00 p.m.

That's all I have for this week. Have a good weekend, stay focused, and be safe.

John Graber's INFOline  |  September 30, 2010
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for September 30, 2010.

Safety
I have a lot to talk about today, and almost all of it is about Safety.

Let’s start with this headline: “Ramp Worker Crushed”. I got this from Brady Templeton over at AMES. Here’s the article.

A ground worker has been run over by an SAS A340 at Copenhagen’s Kastrup airport. The man was taken to a specialist trauma centre in the Danish capital with severe injuries to both legs. Police are investigating the incident, which is believed to have occurred while the aircraft was being towed into a hangar.

Think about that event. A four-engine jet airplane is under tow into a hangar. We all know the procedures and experience that comes into play. Taking a huge airplane into a confined area is serious business. There’s a plan and a briefing. There’s a team. There are wing-walkers and signals. And someone was seriously injured. It doesn’t seem possible – and it happened.

This event resonates with me because a long time ago, when I was a young Pan Am copilot, we often flew into Copenhagen. I have not been back for a long time, but I remember being impressed. Ramp workers moved with crisp precision. They wore their reflective vests all the time and paid attention to hearing protection. They followed the rules and they expected the same of us.

I imagine all that is still true today. SAS is a world-class carrier with a good Safety record. And someone almost died in a routine maintenance event.

The lesson I want you to draw from this event is that things go wrong. In spite of our best efforts, people trying to do things the right way for the right reasons make mistakes. Organizations make mistakes. The lesson here is that in spite of strong Safety systems, you have to protect yourself.

In our business, some of our work is hazardous. We work in dark and noisy places. We move machinery in close confines. We can do that because we design procedures, training, and equipment to Safely negotiate these conditions. We have a layered approach – lights have to work, you have to wear reflective vests, and we set speed limits on the ramp. We use ground guides. We train so you know the rules to protect you and your coworkers, and we supervise your performance to make sure everyone follows the rules.

And still things will go wrong. Someone will drive too fast on the ramp. Someone will not notice a burned-out light. What happens then, if you step into a drive lane without wearing your reflective vest? It is the small things that routinely cause problems because people often don’t correct the small things. They’re focused on the big things. I need all of us to focus on the right things. Don’t let us be in the news having hurt one of our own.

STAR
We flew 98.67 percent on time in August, hitting our second-highest performance goal for the month. Every eligible full-time employee earned a $100 bonus. Eligible part-time employees earned $50. We’ll pay those bonuses in your first October check. August is the fifth month in a row we’ve paid bonuses for our on-time performance. That is a really nice job. Thank you, and keep up the good work. Winter is coming, and our job is going to get harder.

Jennifer Miesse
After nearly fourteen years with us, Jennifer Miesse is leaving ABX Air. Now an HR Manager, she spent the bulk of her time working Employee Relations in our aircraft maintenance organization. Jennifer is one of our go-to leaders. She knows what she’s talking about, and she’s passionate about taking care of our People. She’s made a real difference here – particularly over the last two years. Jennifer is leaving to take a senior role with a health care company closer to her home. When you see Jennifer, thank her for her service to ABX and our People, and wish her well.

That’s all the news I have for this week. 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  |  September 23, 2010
This is Bob Gray with the September 23, 2010 INFOline message.

Everyone is extremely busy these days, as we all work to manage the demands of the business. The good news is, much of the additional workload is the result of projects associated with potential business growth and preparation for possible new opportunities. We appreciate the dedication to getting the job done; however, we cannot forget to remain vigilant to the management of the day-to-day operational issues, especially those associated with the safe operation of the airline. We cannot allow ourselves to become complacent and assume that those things will take care of themselves. Regardless of how busy we are, we cannot allow ourselves to cut corners or sacrifice the quality of what we do.

The Flight department is particularly busy, while our training requirements increase as we recall some of our pilots that have been on furlough. We welcome them back to ABX Air, and we are happy that the business is such that we need to return them to the cockpit. We have also made the decision to consolidate all of the flying that had been scheduled out of JFK, into the CVG domicile. This will provide greater efficiencies and more flexibility in the scheduling of our flight crews.

Over the past few weeks, we have been finalizing some of the language contained in the letters of agreement that were made during Pilot Contract negotiations. I wish to extend my thanks to the Union Leadership for their work as we nail down these last few details of the CBA.

Last week Cargo Facts published that FedEx had reported net income up 110% year-over-year in its latest quarter to $380 million, as total revenues rose 18% to $9.46 billion. Operating income in the quarter was up 99% to $628 million, and the integrator’s operating margin jumped to 6.6% from 3.9% in the same quarter a year ago. FedEx said the increased earnings were the result of strong International Priority growth in the company’s Express segment, continued steady growth in the Ground segment, and also from a net positive impact of higher fuel surcharges. FedEx Express reported revenue up 20.1% in the quarter to $5.91 billion, and operating income up an exceptional 243% to $357 million. As mentioned above, there was strong growth in International Priority, with average daily package volume up 19.2% and yield per package up 4.0%. International Domestic volume was up 10.2%, although yield was down 0.1%.

While the growth in international volumes was not unexpected, the fact that US domestic Express volumes and yields were also up is good--and perhaps surprising--news.

Hopefully this is a sign that the industry is recovering and continued growth may be expected.

On a sad note, former ABX Air employee Hank Stroop was killed in an automobile accident last Friday afternoon. Hank worked for several years at ABX, with the majority of his time spent in the Human Resources department. Hank was hit head on by a car which had apparently gone left of center. Based on the reports, Hank did nothing wrong but just happened to be in the wrong place at the wrong time. Remember Hank’s family in your thoughts and prayers. This incident is a reminder of how fragile life can be and how we should value each moment of it.

Thank you for your interest in the ABX INFOline, and for all you do for ABX Air.

John Graber's INFOline  |  September 16, 2010
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for September 16, 2010.

Safety
It’s raining in Wilmington today as we enter the last half of September. I talked about the dangers of seasonal transitions in my last INFOline, and I want to reinforce that today. Slips and falls hurt more of our people than anything else. Talk about Safety in aviation, and many people think of complex programs and technology. I want you to think more about watching where you’re walking, using good body mechanics when you’re carrying something, and using three points of contact when you’re not on solid ground. If you do that, you won’t fall. And if we all do that, we will have a much Safer cold weather season.

STAR
Last week we rolled out a new STAR program. It covers everyone outside of a bargaining unit, and is designed to help us achieve the service performance we want to provide DHL. We made the program effective April 1st of this year, and we’ve set aggressive goals because our on time performance is critical to DHL’s success. There are three possible bonus tiers, and you’ve hit at least the lowest one every month from April through July. The program paid out last week. Nice job. Look for all the details on our website, and help us continue delivering DHL solid service.

Market Update
The Wall Street Journal reports FedEx’s profit more than doubled in their fiscal first quarter, amid higher revenue and volume. But the company’s shares slumped because its second quarter forecast is lower than analysts’ expectations. FedEx also announced it will combine its FedEx Freight and FedEx National LTL operations next year. It will close 100 facilities and eliminate 1,700 full-time employees in that move.

Happy 30th, Joe
Thirty years ago this week a young accounting manager joined Airborne Express. Now I have to go down more than a page of names to get to someone with only 30 years here. But I think you’ll all agree with me that this name is worth mentioning. In his 30 years here, Joe Hete has played a key role in our company’s massive growth, defining our strategy during these last two critical years, and positioning us for the future. He’s been a firm and constant hand on the tiller through some pretty interesting passages. Thank you, Joe, for all you’ve done, and all you are doing.

Compliance
I’ll talk to compliance last today. I’ll do that because I want to talk about the UPS crash. UPS lost two pilots and a 747 on September 3rd when the plane crashed in Dubai. Our thoughts and prayers are with everyone impacted by this tragedy. Like many of you, I have friends at UPS. When I first heard of the accident, I immediately thought of them.

Accidents are often good teachers, and always excellent reminders. Though it is way too early to speak with authority about what happened here, all reports indicate smoke in the cockpit will be named a factor in the crash. The smoke apparently came from burning cargo.

Not knowing enough about this accident yet, it is still prudent to review our procedures; prudent to make sure all of our operators know how to protect our flights from threats like this, and it is prudent to ensure you know what to do if we have a fire on board.

That’s all the news I have for this week. 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.

Eric Plas' INFOline  |  September 9, 2010
Good morning, everyone. This is Eric Plas, Manager Business Development, with the ABX Air INFOline for Thursday, September 9, 2010.

Safety
Starting with Safety and Our People, it is great to report that there were no OSHA reportable accidents for the month of August. Good news indeed, but remember, it's not a time to get complacent. Stay aware and stay Safe.

Our People
ABX Air has several noteworthy anniversaries this month. Congratulations to 767 Captain Andrew Adams for a remarkable 35 years with ABX. Welcome to the club, Andy. Also congratulations to Bill Henning of System Control, Melody Joy of Payroll, Kyle Murphy of Ground Training, and 767 Captain Jack Sharp, all with 25 years of service with ABX. Last but not least, congratulations to Tina Reed of Human Resources (HR) for 20 years of service. That is an outstanding achievement, and we thank all of you for your dedication and commitment to ABX Air.

Business Development
I would like to give you a little background on who we are and what we do. Business Development is a department of two that works to expand our business mainly through charter flying. Catherine Rettich, our Charter Customer Support Administrator, and I work in front and behind the scenes 24/7 to assure that we secure and grow the charter aspect of our business.

In the charter world we are involved in all types of flying from long- and short-term ACMI business to ad hoc all-inclusive charters, and military work through the Civil Reserve Air Fleet. We have moved everything from perishables and live animals to emergency relief supplies.

This past week we began service to Bogota moving fresh flowers six days a week back to Miami. This past month the six aircraft assigned to charter business have flown over 1,650 hours. Through charters ABX has expanded it's horizon to most parts of the globe with Safety and Compliance.

This, of course, takes a team effort from all departments, from the planning stages to the front lines where our flights crews and professional loadmasters make it happen. Thank you all for the support.

Compliance
Speaking from the charter perspective I would like to take the time to recognize and thank Stacia Garen, our Manager of International Regulatory Compliance, for keeping us in step with the many countries we deal with.

Company News
Let me take a few moments to update you on a few things happening at ABX Air.

While the structure of our business has changed significantly over the past couple of years, our policies have not. So HR, together with several employees and members of management, met to better align our policies with our current business structure and environment.

This week we will hold employee meetings to announce these policy revisions. Please see your supervisor for the dates and times of these meetings. Outbased employees will have the opportunity to call in for the meetings. Each employee will also receive an FYI that summarizes the policy changes. Thank you to all those who participated in the focus groups. Your suggestions and feedback were much appreciated!

During the employee meetings, we also will explain the features of the Employee Self-Service site. This is a web site that allows you to see your payroll records, make changes to your tax withholdings, manage your direct deposits, and much more. We ask that you get familiar with this site as we move towards a more paperless system in the future. Look for the orange brochure with this week’s paycheck.

The last announcement for this week is very good news. We are introducing the new STAR incentive program. We have established new service goals to reflect our new business model. See your supervisor, attend one of the employee meetings, or look for the new STAR program brochure for more details!

Special Reminder
This Saturday is September 11. Please take a moment to remember those who perished and those who put their lives on the line every day to keep us Safe and enjoying our liberty.

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

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

Safety & Compliance
I’ll combine Safety and Compliance this week and remind you of a basic – Safe driving. We’re driving too fast in and around the airpark, and I need you to slow down. Today I tried to catch someone who was driving too fast and correct their behavior – and for the first time I couldn’t get there fast enough. By the time I pulled up they were out of their vehicle and out of sight. Slow down for me. Be Safe.

Happy Anniversary
ABX Air turns 30 this week. That is a heck of an accomplishment for any organization, but when you think about ours, and what it’s taken to get here – 30 years is a big deal. We’ve passed so many milestones and seen so many significant events in 3 decades I won’t even try to recount them all here. But tomorrow, Friday, April 16th, we’ll have an ice cream social from 1 to 3 p.m. in Wilmington. Come by the back lawn of the Admin Building. We can walk through the years together.

Business Update
Joe Hete told the marketplace on ATSG’s recent earnings call that the ATSG fleet is fully deployed. That is certainly true for ABX Air. For the first time in a long time, we can say we have more customers than aircraft to serve them. The demand is putting a load on our airline operators. That is a good problem to have, but it also illustrates how fast the marketplace moves, and how quickly we have to adjust to meet its demands.

Here’s where we are.

On the first day of our new DHL agreement, we were operating one more aircraft in service than planned. The increase added to the number of pilots and technicians we need. In Miami today, we face huge demand for pre-Mothers’ Day lift as we bring flowers out of South America. Some of our competitors face issues that have steered unplanned business our way and we’re working hard to make the most of that. In Europe, we’ve started flying a new route for TNT on very short notice. Anticipating some additional demand, we made the decision in January to carry several extra pilots and technicians through the first quarter. That proved a smart move, but we need more, and now we’re recalling pilots.

You’ve heard me say for months that we need to rigidly control costs – aligning what we spend with what we earn. We’ve done that pretty well through the downturn, and now that we’re seeing increases in demand, we have to continue that same discipline as we add capability and costs back. Our pilots and technicians were the first to feel the impact of declines in demand, and are now helping us work through the first real demand spikes we’ve seen in a long time.

Wilmington Airpark Update
We still expect DHL to donate the Wilmington Airpark to the Clinton County Port Authority soon. The media reports the transfer will occur at the end of the month. We’ll let you know the latest as soon as we hear it.

USPS News
This week the Government Accountability Office – the GAO – reported the US Postal Service is “facing a major financial crisis.” The GAO said “Mail volume, the primary source of USPS revenues, declined by…about 17 percent” over the last three years. According to the GAO, the USPS will lose over $7 billion in 2010. The post office faces many problems, and the GAO offers several options for consideration in its report. One of those is addressing the “legal restrictions and resistance to realigning USPS operations, networks, and workforce.” That is potentially good news for us because, as you know, our STC operations provide the post office with efficient ways to process its volume. As the congress and post office leaders work through the issues they face, we are well positioned to help the post office save money as we expand our services to them.

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

Safety
I will start with Safety, our primary objective when it comes to the wellbeing of our employees.

Recently our three postal hubs completed a four week Audit/Observation Program to look at the body mechanics of their employees when it comes to such things like proper lifting, lowering, twisting, and the proper usage of equipment.

Reducing personal injuries to our employees was the primary objective. During this period, improper techniques were observed, addressed with individuals, and training accomplished.

I am very pleased to report that all three facilities saw a significant drop in "at-risk behaviors" with a noticeable reduction in personal injuries. They were so pleased with the results that they have extended the Audit/Observation Program an additional three weeks.

A big congratulations to all of our employees who participated in this important program. Well done!

Healthcare Center and Pharmacy
Many employees have been asking about the future status of the ABX Healthcare Center and Pharmacy in Wilmington. Regrettably, it is no longer cost-effective to continue to operate our on-site clinic for the fewer number of employees in Wilmington. The Company has made the decision to close the clinic and pharmacy by mid-year. Information about the last day the clinic will be seeing patients and how you can transfer your medical records will be shared with employees once these details are worked out with the vendor.

Our clinic has been a tremendous benefit for our employees and ABX Air. Thank you for making the clinic such a success. At its peak, our clinic was seeing 100 patients a day, delivering affordable, convenient, and quality health care to our employees and their families. If you have the opportunity to visit the clinic before it closes, be sure to thank the staff for all of their care and dedication during the last five years.

Industry News
The International Air Transport Association reported that international cargo traffic in February increased 26.5 percent year over year. They also pointed out that this leaves the industry just 3 percent below pre-recession levels. A couple of the highest growth regions were Asia-Pacific and North America, which both saw growth of over 30 percent.

While a month or two does not necessarily indicate an ongoing trend, the news certainly is promising for our customers and ABX Air alike.

Local Job Fair
If you know of any former ABX employees that are looking for a job, please let them know that there is going to be a Job Fair at Roberts Centre on April 21 from 9 a.m. to 2 p.m. It is sponsored by Five Star Job Centers of Southwest Ohio. Over thirty employers will be participating.

For information and a list of employers who will be attending, you can go to their web site (5starjobfair.com). Pre-registration forms also can be obtained at the Air Park Transition Center.

Employee Activities
Copies of the latest issue of EAFBeat will be distributed with paychecks this week.

This issue explains how to obtain discounted tickets to Cincinnati Reds games, the Indy 500 and Brickyard 400 races, as well as actual Kings Island Amusement Park coupons you can cut out and use, all courtesy of your Employee Activity Fund Board.

The Employee Activity Fund Board is offering discounted tickets for the Reds ballgame this coming Saturday against the Chicago Cubs, which starts at 1:10 p.m. These are $18 tickets, available for only $12 and it is also Free Baseball Cap Day as well. Please contact Holly McCammon at extension 62360 or send her an email.

Flag
Lastly, you may have noticed the flag on the tower was ripped during the recent high winds. It will be replaced as soon as the weather permits safe access to the flag.

That is all the news I have this week. Thank you for all your efforts. Be safe and compliant, and John Graber will be back with you next week.

Safety
In Safety this week, I want to thank you all for your performance over the winter. Operationally we don’t put winter hazards behind us until April 15th, but by every measure our Safety performance over the winter has been exceptional. Statistically winter is our most hazardous season. But this year Gary Stover’s team and Jan Woolums’ leadership have made a real impact. And Kent Stewart’s leadership in our deicing process was very important to us. We’ve tended to our facilities well, and we’ve done a great job working through the transition of our first winter in CVG. Our lost-time accidents are down and damage costs both down. Safety is something we have to produce every day, and you have done that. Thank you.

The New DHL Deal
After telling you for months that we are working on a new deal with DHL, today I can report to you that we have reached that new deal. Monday night Joe Hete signed a broad new, long-term agreement with DHL.

Our new agreement with DHL replaces the ACMI contract we’ve worked under since 2003. It covers a broad range of services, and ABX will provide most of them, but other ATSG companies also have substantial parts to play in making the new deal successful. You can find all the particulars of the deal on the ATSG website – and all over the web on the business and finance sites – but I’ll recap the major points here.

Our deal is to provide DHL’s crews, maintenance and insurance – CMI – for 13 767-200 freighters. We will be DHL’s exclusive 767-200 operators for the first 13 76-200s flown in their domestic system. The contract has an initial term of 5 years, but it has renewal clauses that can stretch it out to 7 or even 10 years – depending on DHL’s needs, and our performance. There are important clauses in the contract that allow DHL to reduce or increase its flying, and that would impact us. I won’t go into those details here, so go to the ATSG web site for more information on all the deal points.

Starting today we are no longer a cost plus business. That means we’re selling our services to DHL for a set amount. So, like every one of our competitors in the air freight marketplace, our business model now includes profitability risk. Almost all that risk is in how we execute in our business day to day. If we do a good job, we’ll make money. If we perform poorly, it will hurt our results.

AMES, the new ATSG MRO, will perform heavy airframe maintenance on the 13 aircraft in Wilmington for at least the next 3 years as part of the contract. CAM, ATSG’s aircraft leasing company, will lease 13 aircraft to DHL. Those leases are for 7 years, a fairly typical lease term in the industry. DHL’s parent company, Deutsche Post AG, has guaranteed payment for both the aircraft leases and DHL’s performance under the CMI contract.

Reliability is one of our best selling products, and one that is very important to DHL. Our new contract incents us keep hitting the on-time arrival numbers we’ve hit for years. It also penalizes us if we perform poorly. But performance at any cost won’t work for anyone going forward, so we have to find and exploit every opportunity we can to produce a reliable product at a reasonable cost.

Under the agreement, DHL continues paying for its fuel, ground handling, facilities, and most normal operating costs. If they add to or reduce the number of aircraft in their schedule, we’ve agreed on how much that will cost. And we’ve agreed on how prices will go up in the contract’s out years.

We have also agreed on how to resolve millions of dollars of issues associated with the wind down of DHL’s business here, and the final termination of the ACMI agreement. There are a many pieces to this termination agreement – from aircraft put settlements, to vacation payments – and they are worth tens of millions of dollars to us.

The deal took effect on March 31st, and runs for 5 years. There are renewal options of either 2 or five years more, depending on DHL’s needs, so the agreement can run 5 years, 7 years, or 10 years by the time it is all done.

We announced all of this Tuesday evening after the stock markets closed. ATSG’s stock price climbed 48% Wednesday, making it the second highest gainer on the NASDAQ exchange for the day. The stock market sees the deal as a very good thing and the market is right.

This agreement demonstrates the real value of what we – what you – produce every day. DHL has asked us to fly for them for the next 5 to 10 years because they’ve seen the service we’ve provided for the last 7 years. They’ve seen what you have been able to do in spite of the most challenging economic environment in generations. Thank you for all you’ve done, and for all you do for us every day. We would not have this deal without you.

ATSG Results
Last night after the market close, ATSG reported its 2009 results in our filing with the Securities and Exchange Commission. In spite of a very difficult year for our business worldwide, ATSG posted annual results that included earnings before interest, taxes, depreciation and amortization of $155.8 million. As important as the earnings, ATSG reduced its debt 26%, taking $135 million off its balance sheet, and reduced its pension obligations another $145 million. Our company is on much better footing today than it was a year ago. You can go to the ATSG website for all the details about 2009.

Wilmington Air Park Update
We expect DHL to donate the Wilmington Air Park to the Clinton County Port Authority almost any day now. We’re not directly involved in those negotiations, so we don’t have the final timetable, but we are continuing our work as the airport operator for the Port Authority, and we’re coordinating with them now to make the transition as smooth as possible.

I’ve covered a lot of material here today. You can – and should – draw your own conclusions about what all this means, but I’ll offer a summary. With the DHL deal, we’ve replaced the uncertainty that hung over our business about what happens after August. Now we know. We’ve reached a commercial deal that requires we work hard, and requires that we’re good at what we do if we’re to make money – but we do work hard, and we are good at what we do, so we will make money. We’ve placed a huge chuck of our fleet with a great customer in DHL, and for a long time. We’ve secured hundreds of jobs across the entire ATSG family of companies – more than many thought possible. We’ve created a solid base of business upon which our company can grow and prosper for years to come. And we’ve done all that in one of the worst recessions in history.

We still have lots to do, but for the first time in almost two years the way before us is clear. We have a job to do, and you have helped us earn the right to do it for a long time to come. Thank you for all you’ve done to help us secure our future.

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

Some examples would be:

• Cell phone usage

  • Please use your landline when you can to make calls.

  • Please limit personal use of your cell phone.

  • Texting plans are not necessarily included with a cell plan, so please check with management to make sure it is on your plan if you require it for your work.
     

• Utilities

  • For years when employees would leave their respective shift, they would leave the lights on for the next shift. We were a 24/7, 365-day operation. In most of our office locations that is no longer the case. If you are the last one to leave your office area for the day, please turn off the lights.

  • If you see an unoccupied area on your way out and nobody is there, turn off the lights. Conserve energy and lower utility bills at the same time.

  • When leaving conference rooms please remember to turn off the lights.
     

• Recycling

  • In the first three months of our voluntary recycling program we recycled 10 tons of material. When you contribute to this program, you cut our trash costs and fees to haul refuse from the Air Park and reduced our impact on the environment. Thank you.

• First Shift – 937-673-0762

• Second Shift – 937-302-6392

• ABX Line at the Admin security desk – Ext. 62369

• Emergencies – Ext. 62911

That's all the news I have for this week's INFOline. John Graber will be back with you next week.

Safety
In Safety this week, I’m proud to recognize our US Postal Surface Transportation Center organization for the strides we’re making in the Safety of our postal operations. Taken as a whole, our three locations achieved their Safety goals for the first quarter of 2010 – making excellent progress from the same period last year. As we get better in the Safety of our operations, we’re going to find it harder and harder to improve – that’s just the law of small numbers. But we cannot accept anything less than perfection when it comes to Safety at work. Help us do better every day.

Wilmington Update
You will see some changes at our Wilmington Airpark soon. Once DHL donates the Wilmington Airpark to the Clinton County Port Authority, our AEFS organization will start running base security. And we’ll start consolidating ABX into a smaller physical footprint on base. We can’t make any of these changes until the CCPA owns the airpark, but we expect that to happen soon. One of the first changes you will see is a relocation of security functions.

DHL and ABX Air
We meet regularly with DHL in our continuing negotiations for a replacement to our ACMI agreement. Those talks are still moving forward and are productive.

DHL Reports 2009 Results
Deutsche Post DHL, DHL’s parent company, reported a fourth-quarter 2009 net loss of €283 million – a considerable improvement from the €3.18 billion loss reported for 2008. For the full year 2009, DHL returned to profit, reporting net income of €644 million, up over a billion Euro from the 2008 loss of €1.69 billion. The DP-DHL division reported a 2009 operating profit of €559 million compared to an operating loss of €573 billion in 2008. Express revenue was down 24% for the year, but DP-DHL said that trade volumes did begin to increase in the second half of the year.

Business News and Cargo Prospects
As we near the end of the first quarter of 2010, there is a lot of commentary on the state of the cargo industry in the news, and some of it is worth mentioning here.

American Airlines is one of the largest passenger airlines in the world and also a huge cargo carrier. In an interview published just last week, Dave Brooks, president of American’s cargo division since 1996, spoke to the state of affairs of air cargo. He said, "2009 was the worst year anyone I know has ever seen – and depending on where you’re standing on the globe, air cargo volumes dropped between 20-40%," and went on to say, "There are still too many planes chasing too few shipments."

In another report, the international consulting firm, Oliver Wyman, reported on a survey of six of the world’s top 10 Cargo CEOs. The survey revealed cautious optimism for the remainder of 2010. The majority of respondents believed that a further decline in the economy was unlikely, but that cargo revenues would not return to pre-recession levels for 1 to 3 years.

Despite the projected recovery, CEOs said customer buying preferences and patterns have shifted for good. Cargo CEO’s believe their customers will continue to be highly price-sensitive and will evaluate alternative transport modes to meet their shipping needs.

Near term growth is expected to come from China and North Asia, followed by the rest of Asia-Pacific. The survey also found that continued economic and competitive pressures may drive increased consolidation – company mergers – in freight carriers. Many freight CEOs reported they are actively evaluating alliances and joint ventures. An Oliver Wyman spokesman said, "The CEOs are signaling that, in the future there will be less room for smaller carriers, especially in the all-freighter segment."

You can draw your own conclusions from all this industry information, but what I take from it is that our work to lower costs and improve service is exactly the work we need to be doing. You can bet it is what our competitors are doing. The good news is, that if they can improve customer service while giving the customer the price he needs, we can too. And we have to.

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

Since December of last year, I’ve had the pleasure of serving as the Director of Safety and Manager of Flight Safety Programs for our airline. I’m presently assisted in this capacity by Michael Lueck, the Manager of Environmental Health and Safety; Holly McCammon, the Assistant for Regulatory Compliance; and Environmental Specialist Don Florea, who manages the air park water treatment facility. We partner together, working with all levels of employees to ensure that ABX remains a safe place to work and maintains environmental regulatory compliance. To start with, I’d like to take a few moments to review our core values from a safety standpoint.

Safety is a Core Value at ABX along with People, Trust, Teamwork, Quality, and Customer Satisfaction. Core values, as opposed to protected or created values, prescribe the attitude and character of an organization. These values never change! The ABX Safety team is committed to work with everyone to cultivate and develop a thriving safety culture where safety remains the paramount consideration in both the planning and execution of our business process.

Compliance is a protected value and is derived from laws and regulations that sometimes change. We use the ABX Internal Audit and Evaluation Program and other auditing programs in ground, maintenance, and flight as our primary tools to ensure our organization remains in regulatory compliance. We constantly and honestly assess ourselves against both legal standards and best industry practices to identify potential threats and hazards. Safety, after all, is a process of identifying threats, assessing their risk based on probability and severity, developing and implementing alternatives (design, device, training, procedure, etc.) and then evaluating and monitoring for success. It is a continuous and never ending cycle.

People are our greatest and most precious asset. Every employee of ABX plays a role in safety. Everyone from pilot to office worker is entitled to a safe working environment, and also has a responsibility to refuse to participate in and report any unsafe or non-compliant acts. Every supervisor or manager at ABX has a responsibility to immediately halt, correct, and investigate unsafe or non-compliant acts or accidents. The safety team exists to partner directly with you, our Pilot’s Safety Committee, and every level of management to articulate those ideals until they are entrenched in mindset of every employee and the fabric of our company’s safety culture.

Profit. The fact is; we at ABX operate in a competitive business environment and we need to make money to ensure our existence. Because we operate with limited financial resources, the safety team is committed to: (1) ensuring we spend adequately to protect our employees and physical resources from harm and damage, and (2) ensuring we receive the maximum safety and compliance benefit for every dollar expended in pursuit.

Service. There are customers at many levels. As the Director of Safety, every employee of ABX is my direct customer in matters of Safety. In a larger sense, DHL, TNT, and our other charter customers all seek a provider that can provide reliable and safe operations at the most competitive market price. Our collective job is to ensure we deliver on the safety aspect of that equation and that our reputation as a safe airline in the conduct of business remains intact. That commitment can only be fulfilled with your help and the help of every other ABX employee.

DHL and ABX
Senior management officials continue to meet with DHL to negotiate a replacement ACMI agreement. We’ll let you know additional information concerning the agreement as soon as possible.

Business News
According to IATA, worldwide cargo demand rose 28 percent in January 2010, compared to January 2009, but still remains 3-4 percent below the 2008 peak levels. The strongest growth has been in Asia, Latin America, and the Middle East. In America and Europe, freight volumes remain about 7 percent above the December 2008 low point.

While our USPS STC operations are producing volumes ahead of projections and a solid revenue stream, the US Postal Service is forecast to lose over $200 billion by 2020 unless it completes cuts in every aspect of the industry, according to US Postmaster John Porter. A price increase along with major restructuring is being contemplated to address the projected losses.

Air Park Workers Give over $31,000 to Charities
Last month, more than $31,000 was pledged for local charities this year by the employees of ABX Air, Airborne Maintenance & Engineering Services (AMES), and ABX Equipment and Facility Services (AEFS).

The annual charity drive raised nearly $12,000 to benefit the American Cancer Society. Other donations included over $6,000 to the American Heart Association and more than $7,000 to the United Way of Clinton County. The United Way also received a $4,000 donation from Teamsters Union Local 1224 representing ABX Air pilots, as well as an ATSG corporate donation of $10,000.

In addition, ABX Air and AEFS employees supported a fourth aid fund, ABX Cares, which provides emergency relief to employees who suffer a catastrophic event in their lives.

John Graber's INFOline  |  March 4, 2010

Scott Glasser's INFOline  |  February 25, 2010

John Graber's INFOline  |  February 18, 2010

Good morning ladies and gentlemen, this is John Graber with the ABX Air INFOline for February 18, 2010. I hope this finds you all well. We have more snow than we have had for a long time in southwest Ohio. Please make sure you take the time to negotiate it Safely.

Hello, this is Terry Wilkin from Corporate Security with the ABX Air INFOline for February 11, 2010.

For our pilots, open enrollment for the Pilot’s Health Plans has been extended to February 12, 2010. This open enrollment is a result of the transition to the Ohio Conference of Teamsters handling the pilot’s health coverage under the new collective bargaining agreement.

Also for our pilot group, banks are closed on Monday, February 15 due to the federal holiday. This is a reminder to the pilot group that the open flying pay scheduled for February 15 will not be deposited and available until Tuesday, February 16, 2010.

Air Park News
In air park news, the process associated with DHL’s intended donation of the air park to the Clinton County Port Authority continues. All involved parties continue to iron out the details, and the final transfer of ownership is expected to be complete in the coming weeks.

DHL and ABX Air
I have no additional news regarding the negotiations with DHL to replace our current ACMI agreement; other than to tell you that meaningful negotiations continue toward that end. Please be assured that any noteworthy developments will be communicated as appropriate.

That’s it for this week’s INFOline. John Graber will be back with you next week. Until then, stay safe, be aware, and keep warm. As always, thanks for all you do for our company.

Hello, this is Jennifer Miesse, from Human Resources with the ABX Air Infoline for January 14, 2010.

One thing for certain is that we need to take care of ourselves and take care of each other to successfully get through this challenging time. If you see one of your co-workers struggling, help them out. Remind them of these tips and encourage them to call Sally in our Healthcare center.

HR News
Let me take a few moments to update you on a few things happening in the Human Resources department.

Regarding the W-2 forms, Payroll states that you should receive your W-2 during the last week of January. We thank you for your patience in both of these matters.

Industry News
Astar Air Cargo announced this week that it will reduce its pilot workforce by 303 to just 153 this year. The carrier stated, "As you know, our primary customer, DHL, has significantly reduced its airlift requirements and Astar has been forced to significantly reduce its flying capacity."

DHL and ABX Air
John Graber and Joe Hete met with DHL again this week on a replacement to the ACMI contract. We will continue to keep you updated as the talks progress.