INFOline 2011 Archive
To access the latest ABX Air INFOline (updated each Thursday afternoon), call (937) 366-4636 or click here. Scripts are posted here within a day or two of each new recording.


December 22, 2011 - Bob Greene July 21, 2011 - John Starkovich March 31, 2011 - John Starkovich
December 8, 2011 - John Starkovich July 14, 2011 - Tammy Voss March 24, 2011 - John Graber
November 23, 2011 - Jeff Walling June 30, 2011 - Bob Greene March 17, 2011 - John Graber
November 10, 2011 - John Starkovich June 23, 2011 - Jeff Walling March 10, 2011 - Tammy Voss
October 27, 2011 - Jan Woolums June 16, 2011 - John Graber March 3, 2011 - John Graber
October 13, 2011 - John Starkovich June 9, 2011 - John Graber February 24, 2011 - Bob Greene
September 29, 2011 - Bob Gray June 2, 2011 - Jan Woolums February 17, 2011 - John Graber
September 15, 2011 - John Starkovich May 26, 2011 - John Graber February 10, 2011 - Jeff Walling
September 8, 2011 - Terry Scherz May 19, 2011 - Bob Gray February 3, 2011 - John Graber
September 1, 2011 - John Starkovich May 12, 2011 - John Graber January 27, 2011 - Jan Woolums
August 25, 2011 - Eric Plas May 5, 2011 - Terry Scherz January 20, 2011 - John Graber
August 18, 2011 - John Starkovich April 28, 2011 - John Graber January 13, 2011 - Bob Gray
August 11, 2011 - John Starkovich April 21, 2011 - Eric Plas January 6, 2011 - John Graber
August 4, 2011 - Steve Janasov April 14, 2011 - John Graber  
July 28, 2011 - John Starkovich April 7, 2011 - John Starkovich  

Bob Greene's INFOline  |  December 22, 2011
This is Bob Greene, Manager of Ground Operations & Compliance, with the ABX Infoline for December 22, 2011.

SMS Update
ABX has been accepted into the FAA’s Safety Management System (SMS) Pilot Project. This formal, top-down business-like approach to managing safety risk will help ABX to improve our overall safety performance and establish a true safety culture. SMS includes systematic procedures, practices, and policies for the management of safety. The pillars of SMS include Safety Policy (Procedures & Organization), Safety Promotion (Culture, Training, Communication), Safety Risk Management (Hazard Identification, Risk Assessment, and Risk Mitigation). Every employee will be a bona fide stakeholder in our SMS. We will continue to share more information as we progress with the ABX SMS.

Ho Ho Shop Update
We wrapped up collecting holiday gifts and delivered those gifts to the Ho Ho Shop this week. Forty seven children were adopted by ABX employees and another five barrels of gifts were collected for distribution to local children in need. Thanks to everyone who donated and helped with this worthwhile charity. Your generosity is warmly appreciated and will make several local children's holiday season a little brighter. Special thanks to Beth Allen in Human Resources for organizing this event again at ABX.

Replacement Jumpseat Badges
Replacement jumpseat badges have been sent to each department for distribution. If you have not received yours yet, please contact your department to make arrangements to receive your new badge before December 31. As a reminder, all expiring badges need to be returned to Human Resources.

Wellness Program
For those employees participating in the Wellness program, the Fitbit pedometers have been ordered and are expected to arrive shortly after Christmas. We plan to distribute the Fitbits between the Christmas and New Years holidays. Also, don’t forget to complete the Health Risk Assessment by year end to be eligible for the insurance discount for the first quarter.

Aircraft 827
Today marks the fifteenth anniversary of the 827 accident. The crew of 827 included Captain Garth Avery, Captain Keith Leming, Professional Flight Engineer Terry Waelti, Sr. Avionics Technician Bruce Goettsch, and Project Coordinator Ken Athey. We lost several good people that tragic day, so please take a few moments and remember their families this holiday season.

That's all for this week. Here's wishing you and your family a happy and safe Christmas and New Year season.


John Starkovich's INFOline  |  December 8, 2011
Good Afternoon. This is John Starkovich with the ABX INFOline for December 8, 2011.

Safety & Compliance
Safety Management System (SMS) is a new initiative passed into law that requires the FAA to conduct rulemaking to have all 121 Air carriers implement an SMS by August 1, 2012. ABX requested and has been advised that it was accepted to be a part of the SMS Pilot Project that will allow the FAA to assist ABX in developing an efficient and effective SMS. Last week Director of Safety Steve Janasov and Manager of Ground Operations Bob Greene participated in some initial training on SMS as ABX prepares for its sessions with the FAA. Here at ABX, the importance on focusing the entire organization on performing our jobs safely and efficiently has long been recognized, so implementing an SMS is a natural next step for us. The FAA sessions will likely take place around the end of the first quarter of 2012. We will keep you advised as this project develops.

The European Union Emissions Trading Scheme (EU ETS) that is being opposed by the airlines in the European Court of Justice remains scheduled for implementation on January 1, 2012. A decision from the European Court is expected before the end of the year and perhaps as soon as December 21. In the meantime, Senator John Thune from the state of South Dakota has introduced a bill in the US Senate that would prohibit US air carrier operators from participating in the EU ETS. You may recall that the House of Representatives passed a similar bill with bipartisan support some time ago.

Company News
The Fall Charity Drive to benefit United Way of Clinton County, the American Cancer Society, the American Heart Association and Clinton County Food Pantries has concluded. Over $48,000 has been pledged or contributed on behalf of all the employees of the ATSG family of companies. Congratulations to Rex Gunning, winner of the paid day off; Charles Wallace winner of the 767 model airplane; and AMES employee Marcus Glass winner of the Delta tickets. The gift basket raffle raised over $2,000. Winners included Tim Balzer, Shari Brucken, Joyce Dean, Cathy Earley, Janice Gardner, Brian Laycock, Holly McCammon, Tricia McIntire, David Speaks, Tammy Voss and Tanya Woodford. Our thanks and appreciation for everyone’s generosity. It was a lot of fun and the money raised will help many in the community. On behalf of the executive teams of all of the participating ATSG companies, please accept our sincere thanks.

We want to congratulate the employees that are reaching a Milestone Anniversary during December. Manager of Flight Simulators Jack Greenwood is celebrating 25 years with ABX. Also, the following employees have reached the 20 year mark: First Officer Tom Shanks; Capt. Keith Bednar; Capt. Phil Myers; and Capt. Bob Walter. Thank you for all that you have done for ABX.

Our on-time service performance for DHL during the fourth quarter stands at 98.63%.

Other News & Information
ABX has been advised that Joe Muckle is stepping down from the position of President of Local 1224 at the end of the year and is being succeeded by Daniel C. Wells, an Atlas/Polar pilot. Joe is returning to ABX as a pilot so we will be seeing him around, but we wanted to extend our thanks for his time and efforts during his term in office. Congratulations to President-elect Wells. We look forward to meeting you and working together. It is also our understanding that ABX pilot Tim Jewell remains the secretary-treasurer of 1224 and ABX pilot Steve Jayson remains Executive Committee Chairman.

As many of you know, ABX has supported the Ho Ho Shop during the Christmas season as it provides gifts for children and families in need. If you are interested in sponsoring a family, please contact Beth Allen at extension 62157. For those of you that have already volunteered, please remember that the Santa Bags are due back no later than December 15.

For your planning purposes, ABX Air offices will be closed on Monday, December 26, and Monday, January 2, for the Christmas and New Year's Day Holidays. Please look for the ICOM that explains how your PTO applies.

That is all for this weeks INFOline. Thank you for all you do to make ABX a success. Take care.


Jeff Walling's INFOline  |  November 23, 2011
Hello, this is Jeff Walling, Manager of Human Resources, with the INFOline update for Wednesday, November 23, 2011.

Safety & Compliance
In safety news, if you work outside in adverse weather, please make sure you have reviewed the November Safety Training Bulletin entitled, “Cold Weather Injuries & Dress.” This safety bulletin is available on the ABX SafetyNet located on the Company intranet. The bulletin has many good tips on preparing for the upcoming winter weather.

Service Update
In company news, our on-time service for October was 98.53 percent. And through November 22 our 4th quarter on-time performance is 98.47 percent. This puts us in the first tier–just below the middle tier–on our service goals for the quarter.

Office Closure
In other company news, the administration offices at ILN will be closed on Thanksgiving Day and the Friday after Thanksgiving. Operations offices will be staffed to support the operations over the holiday weekend. The administration offices will reopen on Monday, November 28 .

Jumpseat Badges
For employees with jumpseat privileges, you may have noticed the expiration date of December 31, 2011, printed on your company ID badge. Human Resources will begin replacing the expiring badges in December and will finish the replacement process before year end. Information on when you are scheduled to receive your replacement will be announced soon. Once you receive your replacement, you will need to turn in the expiring badge to the company.

If you do not have a jumpseat badge, your badge does not expire and will not be replaced. If you have any questions about the process, please let your supervisor know.

Open Enrollment
Benefits open enrollment continues through November 30. This is your once-a-year opportunity to make changes to your benefit elections. Also, if you are planning to participate in the Wellness walking program, be sure to turn in your request form for a Fitbit pedometer by November 30. Information about the Wellness program is available online at myabx.com/benefits.

Ho Ho Shop
Again this year, ABX is sponsoring the Clinton County Ho Ho Shop. The Ho Ho Shop is a charitable organization that collects and distributes holiday gifts for Clinton County children in need. This year, over 1,200 children have been enrolled by their parents in this worthwhile program. You can help by adopting one or more children this holiday season. The Ho Ho Shop suggests spending around $50 per child. We are giving priority to children whose parents were affected by the closure of the Wilmington hub operation. Please see Beth Allen in Human Resources for more information and to receive a child’s “Wish List.” Beth can be reached on ext. 62157 or via e-mail at beth.allen@abxair.com.

Fall Charity Drive
Finally, the Fall Charity Drive also continues through November 30. Congratulations to Dana Siler winner of the Dinner for a Week raffle, and congratulations to Tim Balzer who won the raffle for the Holiday Centerpiece.

We have a new raffle item this week courtesy of the Cincinnati Reds. We are raffling off four two-day VIP passes to RedsFest being held at the Duke Energy Convention Center in Cincinnati on December 2 and 3. RedsFest is a fun family event featuring many current and former Reds players and coaches and lots of baseball-related activities. The raffle will be held on Tuesday, November 29.

We are also raffling off 12 gift baskets created by the employees of ABX. The gift baskets are on display in the Administration Building second floor hallway in Wilmington (ILN) or online at myabx.com/charity. The drawing for the gift baskets is Thursday, December 1.

Raffle tickets for both the RedsFest and the gift baskets are on sale for $1 each or six tickets for $5. Please see Vicki Ertel in Aircraft Maintenance or Jeff Walling in Human Resources to buy raffle tickets. All proceeds go to the Fall Charity Drive.

So far we’ve raised $41,774 corporate-wide for charity. However, just 23 percent of ABX employees have signed up for payroll deduction. Every employee that signs up for payroll deduction and gives at least $1 a pay period is eligible for the Fall Charity Drive prize drawing. Prizes include reserved parking spaces, a paid day off, a flight simulator ride, logo items, and the Grand Prize of two round trip Delta Air Lines tickets to anywhere in the continental U.S., Mexico or the Caribbean plus $200 cash for travel expenses. If you have not yet turned in your pledge form, won’t you please consider giving just $1 a paycheck to help?

Well, that’s all I have this week, except to wish you and your family a warm and Happy Thanksgiving! Goodbye.


John Starkovich's INFOline  |  November 10, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for November 10, 2011.

Safety & Compliance
All aspects of the IOSA Audit have been completed, and ABX is approved until October 2013.

Just a reminder that training sessions must be held for employees exposed to adverse weather. Training must be documented and kept on file for one year as required by OSHA.

Safety Management System (SMS) is a new initiative that has come about with the passage of the HR Bill 5900 into Public Law 111-216 on August 1, 2010. This new law requires the FAA to conduct rulemaking to have all FAA 121 air carriers implement an SMS by August 1, 2012. ABX has requested to be a part of the SMS Pilot Project that will allow the FAA to assist ABX and allow us to take advantage of other projects in developing an efficient and effective SMS. We will keep you advised as this project develops. We have many of the pieces that will complement this program already in place, as our recent IOSA audit shows, and we look forward to working with the FAA on the SMS project.

Company News
ATSG announced its third quarter results on Monday. Adjusted pretax earnings increased by 34 percent to $22.4 million as compared to the 3rd quarter 2010 and net earnings were up 22 percent to $13.9 million on continuing operations excluding impairment and derivative charges. Pre-tax losses from continuing operations were $6.7 million while net losses from continuing operations totaled $4.8 million. The 3rd quarter 2011 earnings included $27.1 million in impairment charges related to reductions in business with DB Schenker that began in September and $1.9 million in unrealized losses on derivative instruments related to the company’s new credit facilities. Both the impairment charge and the derivative charges are non-cash charges. Joe Hete said, “Our business model, which emphasizes balanced, market-sensitive assignments of converted aircraft between long-term dry leases and shorter-term wet lease or acmi agreements, continues to generate strong cash flows even in uncertain economic times. During the third quarter, our operating and cash flow returns remained strong despite the previously announced decision by our customer, DB Schenker, to phase out its dedicated air cargo network.”

The Fall Charity Drive to benefit United Way of Clinton County, the American Cancer Society, the American Heart Association, and Clinton County Food Pantries is in full swing. So far $33,545 toward the $40,000 goal has been pledged or contributed on behalf of all the employees of the ATSG family of companies. There are still many activities planned, including the Dinner-for-a-Week Raffle; Basket Raffle; Bake Sales, Chili Cook-off, and more. Please go to the myabx.com website to get the latest information as to who has won the items; what activities remain, and where we are with regard to our goal. Our thanks and appreciation for your generosity towards those not as fortunate as we are and all of the fun and goodwill that the fundraising has produced. I am waiting to see who wins the second “Scherz Original” currently up in the raffle.

We want to congratulate the employees that are reaching a milestone anniversary during November: Capt. Mark Drews, 25 years; Steve Hanshew, Capt. Tim Kuhn, and Capt. Don Cartier, 20 years; and Mike Pollack, 10 years. Thank you for all that you have done for ABX.

Our on-time service performance for the 4th quarter for DHL stands at 98.34%.

Other News & Information
We wanted to take the time to welcome back the latest group of pilots that have been recalled from furlough. Crewmembers John Herron, James Kight, David McShaffry, James Gallagher, Drew Cesarini, John Taylor, Rodney Arnold, Eric Shearon, Randall Riesbeck, Mark Belknap, and Kirk Simpson. Welcome to ABX. So far this year, there have been 42 crewmembers that have returned from furlough.

Tomorrow November 11 is Veterans Day. Thank you to all of our Veterans for the sacrifices and service so that we can enjoy the freedoms of living in the US. Did you know that ABX employs 184 veterans and that all of the ATSG companies employ 447? Thank you all.

For your planning purposes, ABX Air offices will be closed on Thanksgiving November 24 and most departments will be closed on Friday November 25. Please look for the information that explains how your PTO applies.

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


Jan Woolums' INFOline  |  October 27, 2011
Good morning, everyone. This is Jan Woolums, Director of the Cincinnati/Northern Kentucky International Airport (CVG) operation, with the INFOline for Oct. 27, 2011.

CVG Deice Operations
Winter is still a few months away for most of us, but that's not the case for DHL in CVG, which has been preparing for the winter operation since late summer.

Carson Latham, Manager of Airline Winter Operations Compliance for DHL/CVG, reported yesterday that the deice training is progressing very well due the outstanding support from the ABX Air crews and management.

The mock deice has added another task and complexity to the outbound flights, but it has really helped the deice team to learn how to navigate around the equipment and orchestrate movements more fluently on the CVG ramp.

DHL, in coordination with their deice vendor Integrated Deicing Services (IDS) in CVG, has conducted familiarization exercises on the DHL ramp for the past several weeks.

IDS will operate 20 new Global deicers this year with the Air Plus System. This system has high pressure air that will remove snow, just like the two Tempest units used previously by DHL in CVG. What is unique about the equipment is for the first time all deicers on the ramp will have air capability, which is great from a safety, EPS, and economical aspects. Fifteen of the 20 units are on site, with the remaining units arriving within the next couple of weeks.

Mock events began with the modest one- and two-aircraft operation to a ten-aircraft event on Wednesday, Oct. 26. No water or fluid is used in these exercises. Mechanical movements only; no actual spraying has occurred. The exercises have been going very well, and continuous improvement has been made.

IDS has hired 80 employees, 57 IDS Way ground school trained, 41 airline-trained, 34 completed on-the-job training. New hires are supplemented by 10 IDS supervisors and experienced sprayer from IND regularly in addition to local experienced IDS management for back-up who are not included in these numbers. With all the planned training and backup plans from the IDS group, and with the support of all the air carriers in CVG, this should be a successful winter season.

CVG Expansion
DHL will hold a ribbon-cutting ceremony Nov. 1, 2011, for the expansion to their airport ramp. The ribbon-cutting ceremony will be from 1 to 2 p.m. Non-DHL employees will require an escort.

The plan is to close operations on the temporary C36 runway by Thanksgiving. The ramp expansion should be open by mid-November. The GSE expansion lot should be ready for use/setup by early December.

DHL is looking at the possibility of a sort expansion for the non-conveyable product and some minor modifications to the north ramp for facilitating additional aircraft.

If you remember, in February 2011, DHL announced it would be expanding it's hub facility at CVG to support the growing demands. The expansion would enable parking for nine additional wide-body aircraft that would connect the United States to Asia, Europe, and the Americas.

Then in March, 2011, DHL began the process of land improvement for the runway expansion, with the plan for operation of the expansion in mid-November. Even with the record rainfall this summer the construction never completely stopped.

Fall Charity Drive
The Fall Charity Drive kicks off today and runs through November 30. This year's theme is "A Dollar Makes a Difference!" Everyone is asked to give at least a dollar per pay period. Pledge forms will be distributed starting today.

In Wilmington during the month of November, there will be fun events which employees can participant in to raise additional funds for charity.

All of us have or has someone who could benefit from these donations, be it through the United Way of Clinton County, American Heart Association, or the American Cancer Society. It's all for a very good cause, and we hope to have broad participation this year. Please give generously.

Open Enrollment
Employee Benefits Open Enrollment runs from November 1 thru November 30. Information will be mailed to your home address starting today, Oct. 27.

Flu Shots
Over 100 employees received the flu shot that was offered in the Administration Building on Oct. 11. If you were unable to attend or are stationed out-base you can get a flu shot at any facility that accepts UnitedHealthcare insurance, such as
Walgreens, CVS, Rite Aid, and Target Retail pharmacies.

Reminders
Cargill has moved into the first floor space formerly occupied by DHL in the Administration Building at ILN. Please be respectful regarding the areas in the building that other tenants occupy.

Also, Monday is Oct. 31 and Trick-or-Trick night in most areas. Just a reminder to stay focused as you drive through your neighborhoods.

That's all the news for this week's INFOline. Thanks for all your support.


John Starkovich's INFOline  |  October 13, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for October 13, 2011.

Safety & Compliance
In previous INFOlines, we told you about what the European countries are doing in an effort, they claim, to control emissions caused by aircraft, and that the US airlines were opposing the system that was being proposed to be effective on Jan. 1, 2012. On October 6, 2011, the European Advocate General issued a preliminary opinion in the case brought by the Air Transport Association and others challenging the EU Emissions Trading Scheme (ETS). The preliminary opinion went against the ATA and recommended that the ETS be affirmed. While its decision is not binding on the European Court of Justice, it was not good news for US air carriers. Twenty-one countries have signed a joint declaration in opposition to ETS.

The FAA Rulemaking on flight crewmember Duty and Rest Requirements is currently up for review before the Office of Management and Budget (OMB). The FAA web site indicates an expectation that a final rule will be published by late November. The Cargo Airline Association (CAA) supports changes to existing FAA regulations, provided the changes “take into account the operational realities of the aviation marketplace and must be firmly rooted in fatigue science as that science applies to the airline industry,” says Stephen A. Alterman, President of the CAA. In a piece published in the September 9, Aviation Daily, he went on to say that the “FAA needs to revamp its rule to ensure that it is based on existing sound scientific principles as they relate to the aviation environment and reflects the vastly different operating sectors of the airline industry. CAA’s proposed rules would accomplish those objectives and should be adopted in lieu of the FAA’s 'one size fits all' proposal."

Company News
USTranscom has notified us that we performed at 100 percent reliability. Thanks and appreciation go to all ABX employees for their efforts in accomplishing the CRAF flights for the U.S. military during the months of July through September 2011.

Congratulations to everyone for another great month of on-time performance for DHL. During the month of September, we finished at 99.2 percent on-time performance, which is only eight delays on over 1,032 lanes. For the quarter, this places us in Service Level 2 for the quarterly service portion of the incentive pay program. The financial performance portion of the quarterly incentive has yet to be determined. It is projected to be complete by the first week in November. Our on-time performance so far for October is 98.93 percent.

The Fall Charity Drive will be starting soon. This year, the annual campaign for the United Way (and other charities) will have a higher profile. ABX is planning a number of events and providing opportunities for prizes and other incentives to encourage donations to help those in our community that are less fortunate. AMES, ATSG, AGS, and LGSTX will be holding events as well, and you are invited to participate in their activities where appropriate. It is all for a very good cause, and we are hoping to have broad participation this year. Please give generously.

Other News & Information
Flu shots were administered here in the Administration Building on October 11. Over 100 employees received the shot. For those of you that were unable to attend or are stationed out-base, you may still get a flu shot at any facility that accepts UnitedHealthcare insurance, such as Walgreens, CVS, RiteAid, and Target Retail pharmacies.

For the month of October, we would like to congratulate the following employees for marking milestone anniversaries with ABX: 30 years, Capt. Bill Kocher; 25 years, Capt. Rich Kearney; 20 years, Jim McCoy, Mike Reed, Bernie Phillips, and Michael Goodman; and 15 years, Dave Morton. Thank you for all that you have done over these years of service to help make ABX a success.

If you have not yet seen the trailer for the new Avengers movie that is due out in May of 2012, you may want to take a look at it on the Internet. The film has a number of scenes that were done in the F building here at the air park, and you may want to see if you recognize anything in the recent film trailer.

On October 4, 2011, Ohio Governor John Kasich visited AMES and ATSG for a media event with other dignitaries to announce the new JUMP hangar that is scheduled to be constructed here at the airport. Once built and fully utilized, over 250 additional jobs are expected to eventually be added to the AMES workforce to handle the additional business.

Cargill is starting its move into the first floor space formerly occupied by DHL here in the Administration Building. If you have the opportunity, please make them feel welcome. As always, please be respectful regarding the areas in the building that other tenants occupy.

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


Bob Gray's INFOline  |  September 29, 2011
This is Bob Gray with the September 29, 2011 INFOline.

Safety

National Fire Prevention week is October 9-15. One home structure fire was reported every 87 seconds in 2009, with cooking equipment being the leading cause of those fires and associated injuries. Heating equipment was the second leading cause of all reported home fires and home fire deaths. Roughly two-thirds of home fire deaths happen in homes with no smoke alarms or no working smoke alarms, and about one in five smoke alarm failures was due to dead batteries. Test all of your smoke alarms, develop an escape plan for your home, and have a drill; make it a game for the kids.

Retirement Planning
The Second round of Fidelity investment and retirement workshops is scheduled for Friday, October 7, in Flight Training Room B in the Administration Building at Wilmington Air Park (ILN). To enroll, please email abx.benefits@abxair.com. Seating is limited, so please register early, and indicate in the email whether your spouse will be attending. Employees not based at the air park will need a government-issued photo ID to enter the air park.

Online workshops on various investment topics are available to all employees, including those at outbased locations. Log on to www.401k.com and click on "Tools & Learning" at the bottom of the page. From there, on the left side of the page, click on "e-Learning". You will find several options to fit your time schedule and educate you in the topics you choose.

Flu Shots
A Walgreen's pharmacist will be on site to administer flu shots at the Wilmington Air Park (ILN) Administration Building Conference Room A (in the hallway behind the security desk) on Tuesday, October 11 from 2 to 6 p.m.

Employees, spouses, and dependents (age 14 and above) covered by the company-sponsored UnitedHealthcare (UHC) medical insurance are eligible. No appointment is necessary.

The cost is FREE for those enrolled in the company health care plan. You must bring your UHC insurance card. In addition, you will need to complete the health questions and informed consent form, which can be downloaded in advance or obtained on site the day of the flu shot clinic.

If you are not covered under a company insurance plan and would like to take part in the on-site clinic, please email your name, date of birth, and insurance plan details to abx.benefits@abxair.com. Your claim will need to be pre-processed, and the Benefits Department will notify you of the amount you will owe at the day of the clinic. Payment by check for the exact amount will be accepted.

Outbased employees and those unable to attend this clinic may go to any pharmacy that accepts UHC insurance (including Walgreens, CVS, Target Pharmacy, and Rite Aid, among others) to receive their flu shot. When you present your UHC insurance card and complete the paperwork, the vaccination will be free for you and eligible dependents.

For more information about how the flu shot can protect you from the flu, visit www.flu.gov.

Local News
On Sept 28th, Lynchburg, which is just 16 miles from ABX, opened a food pantry to serve the residents in need. As you know, our whole 5-county area was impacted by the recent downsizing of our Company, and a lot of people from Lynchburg worked at ABX. As a matter of fact, a number of Lynchburg residents still work here. The food pantry is currently running solely on donations from local organizations, people, and churches. Hopefully, as they grow, they will be able to offer more than food (such as personal care items).

Lynchburg is in 2 counties, both Clinton and Highland, and their unemployment rate is high like Wilmington’s. As a community of only 1500, they have really seen what it takes to pull together, and make something this wonderful happen. They’ve had some great people who have stepped up and worked hard to achieve this success. As a matter of fact, ABX Employee Jerry Nesbitt is on the board for the food pantry. If you would like to support this worthwhile cause, I’m sure Jerry would be happy to hear from you.

ACMI Business
Over the past few months the airline operation has experienced an unusually high level of schedule uncertainty. While the DHL part of the operation remains consistent from night to night, our charter schedule doesn’t share that kind of stability. We have taken on additional flights, over complex international routes, with only a few days notice. You have successfully reacted to repeated changes initiated by our customers, only to find that the plan will change several more times before the flight actually is initiated.

One of our Captains recently told us that his September schedule had been changed 13 times since the beginning of the month! Upon checking his schedule, we learned that he had underestimated that number, and there had actually been 17 changes recorded in his flying line for the month.

This reflects the ACMI business that we are in, and to continue to grow the charter business, we must be able to react to our customer’s changing needs. You have adapted well to this new environment, and you have learned to manage the business of change very effectively. Considering the amount of planning and preparation that is involved in operating an aircraft into airports all over the world, this is not a simple task even under ideal situations, with plenty of time to plan. Doing it as well as we do, considering the amount of changes we must react to with short lead times, is evidence of the quality and skill of our people.

Thanks to all of you for making it work as well as it does.


John Starkovich's INFOline  |  September 15, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for September 15, 2011.

Safety and Compliance
A couple of weeks ago, I mentioned the Fatigue Risk Management Plan (FRMP) that ABX is in the process of implementing. This is a program to monitor, manage, and mitigate fatigue, improving flight crewmember alertness and reducing the risk of flight crewmember fatigue. One critical aspect of the program is an on-line form being developed with pertinent questions for crewmembers to answer relative to the facts and circumstances surrounding and leading up to the work assignment. A full and accurate completion of the questions contained on the form will help to identify potential areas to be addressed so our pilots can take pro-active measures to mitigate fatigue and manage it in a fashion to improve alertness and reduce the risks that arise with fatigue. We intend to post a PowerPoint presentation about the program along with the actual FRMP on the Flight Department web site in the near future.

Company News
ATSG announced last week that Cargo Aircraft Management, Inc. (CAM), its aircraft leasing subsidiary, has committed to purchase another Boeing 767-300 series extended range aircraft from Quantas Airways Ltd. This will be the fifth 767-300. Delivery is expected in the fourth quarter and conversion to freighter configuration to be done by mid-year 2012.

ABX extends its thanks and appreciation to all of the ABX employees for their hard work and efforts during the month of August with respect to on-time performance for DHL. August finished with a 99.3 percent on-time result, and DHL representatives have made it a point to thank and congratulate us for it. Please keep in mind that our on-time performance measures for the incentive plan are based on our quarterly results, not just one month's performance. On a quarterly basis through September 14, we are at 98.73 percent.

The Fall Charity Drive will be starting soon. The annual campaign for the United Way (and other charities) has been a tradition here at ABX, although in the last couple of years our attention was focused on the many changes and adjustments to our business. This year, we are looking to give the campaign a higher profile again, and we encourage everyone to participate and give what you can to those less fortunate than we are here at ABX. You will be hearing more about the campaign in the days ahead.

Other News and Information
On October 7, Fidelity will be offering Part 2 of its Retirement Income series: “Shifting from Savings to Spending” as well as “Building a Portfolio for any Weather” and “Getting on the Right Path with your Workplace Savings”. Please check the bulletin boards and MyABX for further details.

Flu shots are again being offered and covered by ABX’s UnitedHealthcare insurance. They are being scheduled for October 11, so circle that date on your calendar. We will announce the time and location soon. Outbased employees can obtain flu shots at any pharmacy that accepts UnitedHealthcare such as Walgreens, CVS, Rite Aid and Target retail pharmacies. Please watch MyABX and the bulletin boards for more details.

Some ABX employees recently had advised that a local bank was purchased by another financial institution, which required those patrons to update their routing numbers for electronic funds deposits and payments. While that is your personal responsibility to handle with your bank, we thought it would be helpful to remind folks that you can update your direct deposit information due to changing banks or your accounts via the Employee Self Service system. After logging into Self Service, just click on “Payroll” and then click on “Direct Deposit Change” and enter your banking information. You have until the Monday of each pay week to make your change for the Friday deposit. After entering your new information, be sure to check back on-line to verify that your new information has been confirmed by the Payroll Department. I can tell you folks that it is pretty easy to do, so easy that I have even managed to make changes in the past.

We are going to make some changes to the INFOline. Starting today, we will be doing the INFOline every two weeks rather than every week. By doing it every two weeks, we are hoping to keep the information fresh and relevant to what is happening around ABX. If you have an idea on how to improve the INFOline, please feel free to send your suggestions to me for consideration.

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


Terry Scherz' INFOline  |  September 8, 2011
Good afternoon, everyone. This is Terry Scherz with the ABX INFOline for September 8, 2011.

Safety and Compliance
I would like to start with Safety and Compliance. The personal safety of our employees is a number one priority of ours. I am pleased to report that year to date there have been only two on-the-job injuries to ABX employees, with only one of them resulting in lost time from work.

Certainly even one injury is one too many, but considering we have over 650 full-time employees engaged in a broad range of tasks, this is a remarkable performance. Your attention to safety procedures and your environment is acknowledged and greatly appreciated.

Service Performance
Service performance of our operation under our CMI agreement with DHL for the month of August was just outstanding. Actually it's the highest level of performance we have delivered under our CMI service agreement since its inception some twenty months ago. During August we completed 1,136 flights and experienced only eight delays for an on-time performance rate of 99.3 percent. We are also off to a very good start for September.

During July and August we flew sixteen CRAF missions in support of the US Department of Defense. We achieved a 100 percent on-time completion rate. These flights will continue each week through September with a couple of additional trips in November.

The service performance you have delivered during August is a tribute to the entire ABX team. It is a direct reflection of the knowledge, effort, and commitment of all of you. Performance like this does not happen by accident or luck. Thank you very much.

Employee Milestones
Employee service anniversaries for this month include captains Mike Feaga and Randy Brooks at 35 years; captains Randy Wallace and Dave Eck completing 25 years; at 15 years, JFK Lead Line Maintenance Rep John Marotto and First Officer David Taschuk; and completing his first year of service, Crew Scheduler James Simpson. Congratulations to all of you.

Air Park Activity
The Port Authority, working with the Regional Planning Commission and some consulting firms, have been continuing to evaluate how best to redevelop and market the Wilmington Air Park. Wednesday, the group held their second public meeting to share their findings and hear input. Among the ideas discussed were: the use of ILN as a cargo hub for trade to and from China, attracting aircraft manufacturing firms to the air park, and supporting the research and development of unmanned aerial vehicles. You can learn more about their ideas and where they are in the process by visiting WilmingtonAirParkPlan.com. A final redevelopment plan is expected by the end of the year.

We Remember 9/11
Finally, as you know this weekend marks the tenth anniversary of 9/11. Words cannot convey the sorrow and grief we felt that day, as our fellow citizens, our friends in the airline industry, and our way of life came under attack. As we mark that solemn day, let's all honor in our own way the memory of those lost in the tragedy, the lives of survivors and rescuers that were forever changed for their experiences, and the sacrifices made by the many servicemen and women who have kept our nation safe in the decade since.

That is all I have for this week. Thank you for all your hard work in keeping ABX successful. Take care.


John Starkovich's INFOline  |  September 1, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for September 1, 2011.

Safety & Compliance
ABX Air, the FAA, and Teamsters Local 1224 recently renewed the ASAP Memorandum of Understanding for a two-year period. ASAP is the Aviation Safety Action Program, which provides a mechanism for flight crewmembers to identify safety issues and improve flight safety through a systematic process of pilot self-reporting, cooperative follow-up, and appropriate corrective action. It is a voluntary program and is in effect on other carriers. One union representative characterized the ABX ASAP as the best ASAP program that he has seen “by far.”

ABX also is in the process of implementing a Fatigue Risk Management Plan (FRMP). The establishment of these plans on the various air carriers can be attributable in part to the tragic Colgan commuter air mishap in Buffalo, which led to the passage of Public Law 11-216. The purpose of the program is to monitor, manage, and mitigate fatigue, reducing the risks of flight crew member fatigue and improving flight crew member alertness. An ancillary goal is to strike an honest balance between the company’s responsibility to establish a viable and effective fatigue call-off and incident reporting environment, and the crewmembers' responsibility to exercise due diligence in reporting for work in a rested state that allows for completion of the required duty assigned. ABX is currently in the 90-day implementation period for establishing this program.

Company News
ATSG announced last week that Cargo Aircraft Management, Inc. (CAM), its aircraft leasing subsidiary, delivered a second 767-200 freighter to RIO Linhas Aereas, S.A., of Brazil. Rio will dry lease the freighter for 59 months and have access to engine maintenance services through CAM’s contract with Delta Tech Ops. Another freighter leased from CAM under the same terms entered revenue service with RIO earlier in August after becoming the first Boeing 767-200-series special freighter to receive certification by ANAC, the Brazilian civil aviation authority.

ABX extends its thanks and appreciation to the all of the ABX employees for their hard work and efforts in keeping ABX operational along with the schedule changes and the repositioning of aircraft as a result of dealing with Hurricane Irene and its effects. While Hurricane Irene did not cause as much damage as originally projected, the damage that it did cause was substantial and even more significant was the tragic loss of lives in its wake. Our sympathy is extended to the families so affected.

Last week, ABX employees donated over 250 food items and approximately $100 to Your Father’s Kitchen here in Wilmington. The money will go toward the purchase of a walk-in cooler, and the food will be distributed to local families in need. Our sincere thanks and appreciation to all who donated.

Other News & Information
UnitedHealthcare (UHC) announced that those whose doctors have been displaced by the hurricane should call the customer service number on the back of the UHC card for assistance in scheduling a medical appointment. The phone number is 888-609-5607. Individuals needing early refills on prescription medicines should contact their pharmacy to request an early refill. Finally, UHC has trained counselors available through its Employee Assistance Program to help deal with emotional or stress-related conditions as a result of the hurricane’s effects. That number also is on your UHC card, and it is 800-888-2998.

As reported in previous INFOlines, the Boeing 787 Dreamliner is ever closer to making commercial flights. Boeing has received certification from the FAA and the European Aviation Safety Agency. The first delivery to launch customer ANA is now scheduled for September 26 in Everett, Washington.

Next week, in conjunction with Labor Day, is National Payroll Week. According to its web site, National Payroll Week "celebrates the unique partnership among America’s workers, their companies, the payroll professionals who pay them, and the critical government programs such as Social Security, Medicare, fair labor standards, and child support. [...] This week celebrates many things important to each of us who work. From the economic, cultural, and social achievements of workers, to the significance of “an honest day’s work for an honest day’s pay, National Payroll Week is a celebration on many levels.” I want to take the opportunity to thank Tammy Voss, Melody Joy, Janice Sheets, and Rachel Bernard for all they do to make certain we are all paid on time and accurately here at ABX.
 
Monday is Labor Day. Have a safe and enjoyable weekend.

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


Eric Plas' INFOline  |  August 25, 2011
Good afternoon. This is Eric Plas with the ABX INFOline for August 25, 2011.

Safety and Compliance
Yet another audit with no findings! Our annual audit with the TSA was completed just yesterday with no findings or concerns. We have many audits, and they become somewhat routine; however, our continued success in these is not automatic. Hard work, attention to detail, and vigilance to procedures all plays a part. A special thanks to all the folks directly involved in the audit and to those that keep us compliant day to day.

Employees
Congratulations to Cheryl Webb on her milestone anniversary of 30 years with ABX. Way to go, Cheryl! Multiple employees are celebrating anniversaries from 5 to 20 years as well this month. Their names are posted on MyABX.com. Please take a look and offer congratulations.

On-time Performance
As of today our service performance for August is 99.19%. Outstanding and very timely considering the difficulties we experienced in July. Our quarter to date performance is up to 98.45%. One week to go in August; keep up the great work!

Business News
Deutsche Post DHL continues strong performance. The DHL division's EBIT for the second quarter of 2011 was more than doubled compared to the same period last year. It's good news when your customers are strong and growing.

Boeing received FAA certification for 747-8F. Atlas Air has 12 on order with the first aircraft scheduled for delivery in October 2011 and two more in November 2011. It's good to keep an eye on competitors and an ear to the ground. The competition is tough, and it's always present.

In ABX charter business news we will begin operations for our new customer ABX World using open time with our Europe-based tails. Inaugural service will begin this weekend operating from Liege (LGG) through Lagos (LOS) and Accra (ACC). Plans call for weekend trips on this routing going forward. Please note that ABX World has no affiliation with ABX Air or our family of companies.

Our CRAF flying continues to go well. Thus far we have completed 7 of 12 trips awarded via fixed buy for fiscal year 2011, all operating between Navy Norfolk and Guantanamo Bay, Cuba. Of special note our on-time performance has been 100%. Performance is key for the CRAF folks and used in computations for future fixed and expansion buys. Just this week we were awarded two additional trips for November. Thanks to all involved in these missions.

That is all for this week's INFOline. Thank you and have a great weekend!


John Starkovich's INFOline  |  August 18, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for August 18, 2011.

Safety
A few folks have raised questions with the Safety Department regarding the procedures for reporting building safety issues, for example, when the elevator is out of order. These issues should be reported to the Security Desk at the entrance to Building 2061, or call extension 62369. Security will in turn contact Property Maintenance, which is provided by LGSTX. If the issue involves a legitimate safety concern regarding ABX and it is not a building maintenance issue, please complete a Report a Safety Issue form on the ABXNET web page, and the Safety Department will follow-up.

Compliance
One of the changes that will be incorporated here at ABX as a result of our recent IOSA audit experience is that our Internal Audit and Evaluation Program will become the ABX Quality Assurance Program. The QAP will better integrate the audits of external contractors and service providers into our system and provide a better interface with quality and reliability programs already on-going in our aircraft maintenance department.

Retirement Planning Workshops
This is another reminder that next week Fidelity Investments is planning workshops on August 23, 2011 on getting ready for retirement and investing in the current market, and is provided without cost. Sessions are planned for noon, 2 p.m., 4 p.m., and 6 p.m. in Flight Training Room B on the first floor of the Administration building. To register for a session, please send an email to ABX.Benefits@ABXAir.com. The programs are available online as well so that outbased employees may take advantage of the programs.

Company News
Last Saturday night, the Red Cross held a fundraiser called the Celebrity Waiter Event for Clinton County. It was the third year for the event, and it was held at Generations Pizza. ABX Air and ATSG were Silver Level Sponsors for the evening. We want to thank Jean Radcliffe for her assistance as well as Terry Wilkin, Quint Turner, and Gayle Paetzel for volunteering and participating as celebrity waiters for the event. Rumor has it that one ABX waiter went from being a biker to being the Pope and finally to being a clown of sorts. Sounds like folks had a good time for a worthy cause. We understand that over $7,500 was raised for the local Red Cross.

In past INFOlines we have mentioned that the European Union has extended its cap and trade system to airlines in a claimed effort to reduce aviation pollution and carbon emissions. It is really nothing less than another tax on airlines that will cost $3.1 billion by 2020 according to an article in the Washington Times authored by U.S. Representative F. James Sensenbrenner. The article says there is no obligation on the European countries to even use the funds for climate-related programs. ABX Air will be covered by the program and has already taken preliminary steps mandated by the EU as the January 1, 2012 effective date is fast approaching. Unless a challenge to the law is successful before the European Court of Justice, the added tax will make all air cargo shipping and air traveling more expensive. Along with the significant fuel prices, it only makes doing business more difficult and it is not in our best interests as our customers continue to look for less expensive ways to ship their goods.

ABX Air is going to be part of a new team of air carriers providing air service to the U.S. military under the Civil Reserve Air Fleet (CRAF) program. The new Patriot team will include Omni Air International, Southern Air, Sky Lease, Inc., United/Continental, and ABX Air. The new team is scheduled to begin after the first of the year. In the interim, ABX will continue to be a member of the UPS team.

Boeing is continuing its efforts to having the new 787 aircraft complete type certification by late August to allow delivery of the first Dreamliner to ANA by the end of September. Why is that important to ABX? Because the 787's introduction and delivery to passenger airlines is expected to result in more 767 aircraft being released from the passenger carriers and available for cargo conversions. The availability of more 767 aircraft has a number of obvious benefits to ABX to allow us to potentially grow our fleet subject to customer demand. It also, however, results in the possibility of competitors entering the 767 air cargo business. That is what the marketplace and competition is all about, and ABX has to continue to work smarter to meet and surpass the competition in providing reliable, efficient, and reasonably priced services to our customers.

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


John Starkovich's INFOline  |  August 11, 2011
Good Afternoon. This is John Starkovich with the ABX Infoline for August 11, 2011.

Safety
The IOSA Audit was completed during the first week of August. The audit had three findings. All three findings were not of a serious nature, and we will work to have the necessary changes or corrections in place by September 26, 2011. If accepted, we will be advised prior to October 26. Upon final approval, this will extend our IOSA registration to October 26, 2013. Congratulations to everyone at ABX. The audit committee was very complimentary to our operation and reminded us that in our previous IOSA Audit, we had 20 findings; so the improvement down to three along with all of the changes at ABX in the interim is a sign that we have good processes in place. The bottom line is that these types of results are no accident. They come from hard work. Again, we appreciate all that was done by Director of Safety Steve Janasov and his core team of Dan Hendershott, Rex Gunning, Bob Greene, Mark Wilt, and a whole list of others that are too many for me to list here who made this audit a success.

Retirement Planning Workshops
This is another reminder that Fidelity Investments is planning workshops for August 23, 2011 on getting ready for retirement and investing in the current market. The workshops are provided without cost. Sessions are planned for noon, 2 p.m., 4 p.m., and 6 p.m. in Flight Training Room B on the first floor of the Adminstration building. Posters are up.

To register for a session, please send an email to ABX.Benefits@ABXAir.com providing your name and the session that you would like to attend. The sessions are also open to spouses so please indicate if your spouse will be in attendance. These sessions are only for our non-pilot ABX employees that are enrolled in the Capital Accumulation Plan which includes the frozen pension plan and the 401k plan. The programs will be available online as well so that outbased employees may take advantage of them.

Company News
Last week ATSG announced the financial results for the 2nd Quarter. As compared to the second quarter of 2010, revenues were up 21 percent; and net earnings were $12.3 million or $0.19 per share vs. $0.15 per share for 2010. It was a very good quarter. You are invited to go the ATSG website and listen to the earnings call in its entirety for all of the information that Joe Hete and Quint Turner shared with the financial analysts, the investor community, and the general public.

With the results of the second quarter finalized, we also have reviewed the on-time performance level for the quarter and the financial performance level that make up the ABX Employee Incentive Plan. This is the replacement for the former STAR program. We are happy to announce that we met Level 2 for on-time performance (this is the middle level result) and Level 3 for Financial Performance (this is the top level result). Thank you for the fine work in the second quarter. The bonuses will be in your Friday, August 12 paycheck. We already are over a month into the third quarter, and our challenge is to meet or exceed these excellent second quarter accomplishments.

Earlier it was announced that DB Schenker, a large customer of ATSG that gets air cargo services from ATI and Capital, intends to move from a dedicated freighter fleet to a non-fixed asset model for its North American air freight system. That transition includes the announcement of its intention to close its Toledo, Ohio hub, which currently handles the air freight for Bax Global/DB Schenker, on September 1. It is moving the air freight to DHL’s CVG operation. ATI has been advised that it will continue flying four DC-8’s for Schenker until the end of the year, and Capital Cargo will continue to fly three 727’s for them. DHL is in talks with BAX-Schenker about a longer term relationship. 2012 requirements will depend on the customer’s needs.

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


Steve Janasov's INFOline  |  August 4, 2011
Good afternoon, this is Steve Janasov with the INFOline for August 4.

Safety

As proclaimed in our Safety and Security Policy , Safety is a Core Value at ABX and it is "every employee’s responsibility to work and act safely as an integral part of every task or assignment." In addition, every employee should take an active role in the identification and reporting of hazards that could affect the safe completion of duties or otherwise compromise operational safety. This concept is at the heart of a working Safety Management System and an organization with a viable safety culture. There are a variety of means to report safety issues or concerns including the Report a Safety Issue link on the ABXNet web page or the Safety Reporting System contained within the Flight Operations Manual. As indicated in the policy, Safety Reports can be submitted anonymously, if so desired. Your input regarding hazard identification or other safety issues or concerns is always welcome, taken seriously, and handled professionally.
 

Compliance

Beginning this past Monday, we began our renewal audit with ICF–SH&E to remain an IOSA compliant carrier. The IATA Operational Safety Audit is the benchmark for global safety management within the airline industry and the most comprehensive commercial audit available. To successfully complete the audit, we must demonstrate compliance with 967 IOSA Standards and Recommended Practices (ISARPs) contained within the current IOSA Standards Manual. 

The ISARPs are divided into the following categories:

- Organization and Management System,
- Flight Operations,
- Operational Control and Flight Dispatch,
- Aircraft Maintenance and Engineering,
- Cabin Operations,
- Ground Handling Operations,
- Cargo Operations, and
- Security Management. 


In addition to the ISARPs, audit observations were conducted on a revenue flight, classroom and simulator training, and ground handling and refueling operations. Many of the IOSA standards exceed those required by the FAA, and every standard must be met to remain on the registry. For any standard identified as a finding, a corrective action plan that includes evidence of both documentation and implementation must be submitted and approved by the audit agency. The audit is going well thus far, and John Starkovich will have more information concerning the results next week.
 

Industry News
Dutch freight and delivery firm TNT Express posted an 8.1 percent drop in second-quarter adjusted operated income on Monday on higher fuel and wages costs, and volatile intercontinental shipping volumes. The express delivery firm has suffered on two fronts: its customers are less willing to pay for pricey air transport, while operational problems in its Brazilian unit have led to a loss of clients and a drag on earnings. The International Air Transport Association said last week that there was little sign of an uptick in air freight volumes, even though world trade is currently growing at about 7 percent a year, citing that increases in jet fuel prices makes other modes of transport more attractive.

After dealing with the debt crisis, U.S. Senate negotiators tried and failed to end a stalemate over temporary financing for the Federal Aviation Administration, leaving 4,000 agency employees out of work and relying on airport safety inspectors to continue working without pay. The partial agency shutdown, which began last week is likely to continue at least through Labor Day, has also idled tens of thousands of construction workers on airport projects around the country. Dozens of airport inspectors have been asked by the F.A.A. to work without pay and to charge their government travel expenses to their personal credit cards to keep airports operating safely. We have contacted our Certificate Holding District Office in Michigan, and it appears that we will see little change in their current operations.


ABX News

ATSG News:  Yesterday, ATSG reported sharply improved financial results for its second quarter ended June 30, 20011, as compared with results for the second quarter of 2010. Pre-tax earnings were up 24 percent compared with the second quarter of 2010. Revenues increased 21 percent due to higher leased aircraft and airline service revenues. Excluding reimbursements, ATSG’s revenues increased 16 percent as compared to the prior year second quarter.


Pension Plan Update:  The Company has transitioned our pension plan trustee relationship to Northern Trust Bank from the Bank of New York Mellon effective Aug 1. Northern Trust, of Chicago, has been in business since 1889 and is a global leader in servicing retirement programs. Our retirees will begin receiving their checks or direct deposits from Northern Trust effective Sept 1. Retirees have already been notified of the changeover. This change does not affect our 401(k) plans, which remain with Fidelity Investments.  
 

Employee Activity Fund Board: There are 30 tickets available for the Cincinnati Reds game on September 17. The Reds will be hosting the Milwaukee Brewers and the game starts at 7:10 p.m. The tickets are in section 136 and cost $10.00. Contact Holly at extension 62360 to reserve your tickets. This is the last Reds home game; you don’t want to miss it!


That’s all I have for today. John Starkovich will be back with next week’s INFOline.  Have a great day!
 


John Starkovich's INFOline  |  July 28, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for July 28, 2011.

Safety
Last week we reminded everyone to take care to keep hydrated in the hot weather. This week we are asking that folks take the necessary steps to protect themselves from unhealthy exposure to the Sun. Some things to keep in mind:

  1. UV rays are weakest before 11 a.m. and after 4 p.m. so you may want to plan outdoor activities accordingly.

  2. Skin does not have to feel hot to get burned.

  3. Wear sunscreen with an SPF of 15 or greater and apply it at least 20 minutes before going outside.

  4. Sunscreen should not be used on babies under 6 months of age. Instead keep them out of direct sun and dress them in clothing made of closely woven material.

  5. Stay hydrated by drinking plenty of water and juice. Also keep in mind that alcohol consumption may cause dehydration.

  6. Be careful getting into vehicles that have been sitting in the sun as surfaces get extremely hot. Placing a cloth or towel on overheated interior material of your car will help you avoid burns.

Wilmington Air Park News
We have learned that the Clinton County Port Authority has signed leases with Cargill for office space on the first floor of the Admin. Building. Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services with 131,000 employees in 66 countries and over $107 billion in sales and revenues. It is our understanding that it is consolidating some of its Ohio offices in the area into one location here at the air park. We welcome them and extend our congratulations to the Port Authority for adding to a growing list of tenants.

As part of that growth in tenants, all employees of the ATSG companies including ABX are reminded that they should stay within the areas of their leases and common use areas, and not take short cuts through other areas. Being respectful of areas leased by others is a first step to ensuring that others will be respectful of our space as well.

Audits
The IOSA Audit remains scheduled for the week of August 1. Much time and effort has been put into the preparations for this audit, and we appreciate all that is being done by Steve Janasov, Dan Henderschott, Rex Gunning, Bob Greene, Mark Wilt, and a whole list of others that are too many for me to list here. Next week all will be busy with the IOSA team here, so please be patient if folks are not immediately available when you are looking for them.

Retirement Estimates
The retirement estimates have been mailed to all current and former ABX Air employees who had a vested benefit under the now-frozen pension plan and who are not already or currently receiving payments under the Plan. Repeating the two cautions of last week: these are only estimates, and the benefits are not available for cashing out.

Fidelity Investments is planning workshops for August 23, 2011 on getting ready for retirement. This is part one of a three-part series and is provided without cost. Sessions are planned for noon, 2 p.m., 4 p.m., and 6 p.m. in Flight Training Room B on the first floor of the Admn building. Posters are up. To register for a session, please send an email to ABX.Benefits@ABXAir.com providing your name and the session that you would like to attend. The sessions also are open to spouses, so please indicate if your spouse will be in attendance. These sessions are only for our non-pilot ABX employees that are enrolled in the Capital Accumulation Plan, which includes the frozen pension plan and the 401(k) plan.

Other News
Earlier this week, it was announced that DB Schenker, a large customer of ATSG that gets air cargo services from ATI and Capital, intends to move from a dedicated freighter fleet to a non-fixed asset model for its North American air freight system. That transition includes the announcement of its intention to close its Toledo, Ohio hub, which currently sees air freight for Bax Global/DB Schenker. Rising fuel costs, challenging economic conditions, and a continuing shift in customer demand from air to ground freight services were given as reasons for their decision. When more information is available for public dissemination, we will let you know.

I am always amazed at all of the things that ABX employees do as part of giving back to the community. A recent article off the Zanesville Times Recorder web site involving an ABX flight crewmember and his father was just another example. Doug Wright and his father contribute their time to the Young Eagles, which is geared toward children ages 8 to 17 as part of the Experimental Aircraft Association’s Young Eagles Program. They, and others, “donate their time to flying and describing the safe operation of airplanes and principles of flight”, according to the article by Zanesville Times Recorder Staff writer Holly Richards. Our thanks to the Wrights and all of the ABX employees that give back to their community.

Finally, for those that are interested, the EAFB still has some discounted Cincinnati Reds baseball tickets available for September 17. This is team photo night and the last home game of the season. Apparently, there are 40,000 team pictures available for distribution to fans in attendance that evening. Please contact Holly McCammon at ext. 62360.

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


John Starkovich' INFOline  |  July 21, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for July 21, 2011.

Safety
With the spell of hot weather that most of the country is currently experiencing, please be reminded how important it is to take the necessary precautions to keep hydrated and other steps to avoid heat exhaustion whether at work or at home.

Wilmington Air Park News
Marvel Studios announced that they will be filming at least one scene of The Avengers at the air park in August. There are estimates of over 400 people being involved in the project from Hollywood. Unfortunately, it is a “closed set” so there will not be a chance for folks to watch the filming, but it is still nice to have the additional activity at the air park and the economic benefit that goes with it.

We have also learned that the Clinton County Port Authority has approved a lease to a company to start the dismantling and parting out of 25 DHL-owned DC-9 aircraft on D Ramp.

Audits
This is a year of audits for ABX Air. The IOSA Audit remains scheduled for the week of August 1. Two other audits have also been completed:

1. The FAA completed the Anti-Drug and Alcohol Misuse Program with no findings. Our thanks and appreciation to Tina Reed and all others involved for being prepared and doing such a great job.

2. The Department of Defense Commercial Air Carrier Quality and Safety Requirements Audit also was completed during the week of June 13. One discrepancy was found, and it was satisfactorily corrected during the audit. We appreciate the efforts of Steve Janasov, Director of Safety and everyone else who assisted in the audit. In particular, our congratulations and thanks to Paul Schimanski for all the work he did to make the audit a success. Without being asked, Paul collected and organized the data prior to the auditor’s arrival. This allowed the information to be efficiently reviewed and reduced or eliminated the retrieval of information during the actual audit. Paul worked several weekends in advance of the audit to accomplish this, and we truly appreciate his dedication and effort. He received a Letter of Recognition and has our thanks for job done extremely well.

Retirement Estimates
As previously advertised, ABX Air employees will be sent an estimate of their retirement benefit under the former Pension Plan that has been frozen. The estimates are being mailed to homes the week of July 25 so please look for them in the mail. A couple of things that you may want to keep in mind. First, these are only estimates. Second, these benefits cannot be cashed out.

Other News
The Flight Department is in the initial stages of recalling a number of furloughed pilots. Five were being recalled this week with an additional 17 to be recalled over the coming few weeks. The recalls are a part of a normal process of back-filling for retirements and preparing for staffing needs that are projected for the next quarter.

Airborne Maintenance and Engineering Services (AMES) has partnered with Laurel Oaks for a Jr. Technician/Structures Program.

The European Union has initiated an Emissions Trading Scheme that will be effective in 2012. ABX through Mike Lueck has already been doing preparatory work, since this will affect our flights going over to Europe and our intra Europe flights. It basically extends a program in place for utility power companies that the EU claims to be for pollution control of carbon dioxide emissions to airlines operating in the EU. Without getting into all of the ins and outs of the legitimacy or effectiveness of the program, it is very costly program. US airlines are formally challenging its implementation in the EU court system. There also is a bill being proposed in the US Congress that would prohibit US airlines from participating in the EU ETS. We all will be hearing more about this in the news and at work as 2012 is quickly approaching.

Finally, for those that are interested, the EAFB still has some discounted Reds baseball tickets available for July 31 and September 17. Please contact Holly McCammon at ext. 62360.

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


Tammy Voss' INFOline  |  July 14, 2011
Hello, this is Tammy Voss, with the ABX Air INFOline for July 14, 2011. I hope everyone is doing well.

Safety & Compliance
With summer quickly upon us, please take precautionary action to avoid heat exhaustion and heat stroke. It is important to recognize the symptoms of these conditions and take immediate action if they occur. The Safety department has issued a Safety Bulletin regarding Heat Stress. For more information, talk to your supervisor.

Our People
We have a number of anniversaries to celebrate this month. Aircraft Maintenance Planner, Chris Theofilos, and Crew Member, Gary Watts, are celebrating 25 years with ABX. Mike Lueck, Manager of Safety, is also celebrating 20 years of dedicated service. Congratulations!

I was at a meeting today and heard that a couple of weeks ago, the family of Billie Flint in Aircraft Maintenance was trying to contact her here at work to let her know that a family member had been rushed to the hospital with a serious health issue. While navigating the phone system, Billie’s family ended up on Pat Ederer’s line. Pat immediately tracked Billie down and forwarded the call. The Flint and Gibson family would like to thank Pat for being so compassionate and professional. Incidences like this occur at ABX everyday but hearing this story reminded me that we are lucky to work beside such caring, hardworking, and professional people.

Performance
I am pleased to report that our on-time performance for June 2011 was 98.53 percent. Our 2nd Quarter 2011 CMI performance was 98.64%. We encountered some very challenging issues during the quarter and achieving this level of on-time performance day in and day out is a huge accomplishment. As soon as our 2nd Quarter audited financial results are reviewed and approved, we will update you on the 2Q results of the ABX Employee Incentive plan.

Dispatch moving to AGS
On June 30, ATSG announced that ABX Air's Dispatch Services group had been selected to become a new division under Airborne Global Solutions (AGS). While Dispatch will continue to provide the same services to ABX Air that it currently does, AGS will market the group's expertise to other operators and supplemental airlines as well. To avoid disruptions in the operations, the separation process will occur over the next few months. Your feedback during this period is important. Please don’t hesitate to let us know if you have any ideas or suggestions on making this transition a smooth one.

CCPA
The Clinton County Port Authority has announced that Hollywood is coming to ILN in August. I am sure that many of you have noticed the “GH” signs all around the airpark. GH is short for Group Hug the name of Marvel's production company which will be filming the movie The Avengers in Building F. Over 400 people will be involved in the production. It is estimated that the economic impact on the local economy will be between $1.2 to $1.4 million.

That is all the news we have for this week. Thank you for your time and all that you do for our Company. Eric Plas will be back with an update to the INFOline next Thursday.


Bob Greene's INFOline  |  June 30, 2011
This is Bob Greene, Manager of Ground Operations & Compliance, with the ABX INFOline for June 30, 2011.

Safety and Compliance
If it seems like ABX has been going through one audit after another recently - it's because we have. Let me take this opportunity to quickly discuss our just-completed and upcoming external audit activities.

Recently ABX began flying within Europe under a wet-lease arrangement with West Air Luxembourg. As is typical with a wet-lease, the Luxembourg civil aviation authority (like our FAA) had to approve this agreement. This approval was granted based upon ABX successfully passing an audit of our flight, maintenance, and ground operations as conducted by a West Air Luxembourg auditor.

The last two INFOlines mentioned that the Department of Defense (DOD) was visiting to conduct their bi-annual survey of ABX. Several auditors from Scott Air Force Base spent the better part of a week checking our various airline operations. Passing such an audit is essential if ABX wants to continue to bid on and fly lucrative DOD contracts. According to the DOD auditors, ABX did very well during the audit. Based upon the auditors' recommendation, we expect that the DOD will determine ABX's continuing fitness to fly DOD contracts.

This week you may have noticed the auditors from Japan Airlines (JAL) visiting here at ABX. JAL has completed an annual follow-up audit of ABX operational areas with very good results. JAL can now report back to the JCAB (the Japanese FAA) regarding our capability to continue to operate safely in the JAL system in Japan and China.

In July ABX will get a visit from the FAA who will be auditing our compliance with the DOT Drug and Alcohol Prevention Program.

Lastly, let me mention the IATA Operational Safety Audit (IOSA) upcoming in August. This will be ABX's third IOSA audit. With IOSA, ABX will undergo a week-long, very rigorous external audit of all of our airline operational areas. What makes the IOSA audit challenging is not just that it is so in-depth, but because it is so far-reaching. To continue to qualify for its IOSA registration, ABX must show not only that we meet FAA and TSA standards, but also that we exceed those by adhering to many additional IATA / ICAO quality standards and best practices. With an IOSA registration comes the benefit that ABX can more easily compete for international business and operate globally. Since IOSA is recognized around the world as the benchmark safety audit program, many international business partners and civil aviation authorities expect air carriers such as ABX to be IOSA registered, as an indication of our commitment to operational safety and continuous improvement, and as a prerequisite to doing business.

EAFB News
You may contact Holly McCammon at ext. 62360 to get discounted Reds tickets for July, August, and September games.

United Way of Clinton County
A cornhole tournament to benefit the United Way of Clinton County will be held Saturday, July 9 from 5 to 8 p.m. at the Elk’s 797 Lodge (2593 Rombach Ave.) in Wilmington. On-site registration begins at 4:30 p.m. and is $20 per person, or you can pre-register for $15 per person by calling 937-383-4846.

Pay Plan
ABX has rolled out its new Pay Plan for non-bargaining employees. As part of that Plan, performance appraisals will now be done for employees at mid-year rather than on an employee’s anniversary date with ABX. Employee appraisals are being completed by supervisors during the next few days. For those who qualify, a pay increase will be included in the July 15 payroll.

People
Diane Hibbett, Flight Operations Administration Supervisor, was recently recognized for developing an Aircraft Mishap Response Plan training course for ABX. ABX had previously contracted with Embry-Riddle Aeronautical University to provide an instructor to do this mandatory training for ABX mishap team members. With Diane's computer-based course we were able to bring this training in house and save the considerable cost of an external consultant. Speaking as a member of the mishap team who has taken both courses, we now have a training program which is more personal and relevant to the ABX team and is a superior product in all respects.

Jean Radcliffe, Contracts Administrator, was also recognized for her efforts above and beyond in assisting Aircraft Maintenance with the purchase of a 25K forklift. Jean worked countless hours in determining the exact requirements, identifying a pool of potential units, and negotiating with several suppliers to obtain a unit to meet ABX specifications. Thanks to Jean's persistence and negotiating skill ABX was able to get price and warranty concessions, saving ABX thousands of dollars over the life of the forklift.

Please have a safe Fourth of July weekend. That's all the news for this week.


Jeff Walling's INFOline  |  June 23, 2011
Hello, everyone. This is Jeff Walling, Manager of Human Resources, with the INFOline update for Thursday, June 23, 2011.

Safety
National Safety Month continues, and this week the National Safety Council is focusing on preventing slips, trips, and falls. This is a timely topic; in May we had three OSHA recordable accidents, and two of the accidents involved slipping, tripping or falling. Each year in the U.S., falling results in over 8.6 million visits to the emergency room. Many of these accidents could have been avoided by following these simple safety rules:

  • Pay attention to where you are walking, and

  • Use handrails when climbing or descending stairs and ladders.

More information is available at the National Safety Council’s website at www.nsc.org.

Compliance Update
Turning to regulatory compliance, last week three auditors from Scott Air Force Base conducted the Department of Defense on-site biennial review of ABX Air’s operations. Although we don’t have the final report yet, the auditors were very complimentary about ABX during the debriefing at the end of the on-site inspection. The auditors indicated that they were impressed with our well organized operation and our strong safety programs. It’s always good to have a fresh set of eyes reviewing our operations, and we look forward to receiving feedback in the final report.

Business News
In business news, Ken Allen, worldwide CEO of DHL, announced during a recent visit to Hong Kong, that DHL was adding an additional daily flight from Hong Kong to CVG. DHL also announced a new direct flight from Bahrain to CVG, which will reduce transit time from the Middle East by one day. Allen noted that DHL is experiencing growth at one-and-a-half to two times the world’s GDP growth rate. This is positive news for this important customer.

In other business news, ABX recently started a new European flight from Leipzig, Germany to Stockholm, Sweden. This flight runs six nights a week for West Air Atlantic and supports the European DHL network. We now have three aircraft operating in Europe and a fourth operating between Europe and North America.

Here in Wilmington, Clinton County has been designated a HUBZone by the United States Small Business Administration. HUBZone stands for Historically Underutilized Business Zone and allows qualifying small businesses to receive preferential access when doing business with the federal government. This is an important step to encourage economic redevelopment in our local communities. For more information about HUBZones, visit the Small Business Administration’s web site at www.sba.gov/hubzone.

HR News
In Human Resources news, I am pleased to report that we are on track to implement pay raises for our non-bargaining full-time and part-time employees. Pay raises will be effective June 27 and will appear on the July 15 paycheck. Your supervisor will provide feedback about your work performance and the amount of your increase over the next two to three weeks.

Jobs
Some may be surprised, but we do have job openings. Our job openings are posted online at www.abxair.com under the careers section. Our sister companies also have job openings. You can find the openings for AMES at www.airbornemx.com and for Airborne Global Solutions, LGSTX , and ABX Cargo Services at www.airborneglobal.com. If you know anyone looking for a job, and I’m sure you do, please let them know about these web sites. We are an Equal Opportunity and Affirmative Action employer.

Retirement Income Planning
Does your retirement planning include wearing a vest and working at a big box store? Well, there may be a better way. Beginning in August, we will begin offering retirement income planning workshops by Fidelity Investments. These workshops are for anyone that has reached what I call the “Retirement Red Zone.” You’ve spent the better part of your career saving for retirement, but do you know how to create an income plan, once you have retired?

These free workshops will cover how to build an income plan, how to create an investment and withdrawal strategy, and how to preserve your retirement savings for future generations. The workshops are open to anyone age 55 and older. Watch for more information about the dates, times, and how to sign up for these workshops at www.myabx.com.

Retirement Statements
Finally, as you know, our defined benefit pension plans were frozen in early 2010. When a pension plan freezes, it continues to pay benefits to retirees and will provide future benefits to future retirees, but no additional benefits are accrued. Since the plan is now frozen, we will be providing each participant (who is not already receiving payments) an estimate of their future benefit. These statements are scheduled to be mailed in July. The statements also will indicate the date you can start receiving benefits provided you have separated employment with the Company. Be sure to look for these statements in your home mailbox. You will want to keep this document along with your other important papers.

Well, that’s all I have for this week. Bob Greene will have next week’s update. And remember to prevent those slips, trips, and falls by taking safety one step at a time.


John Graber's INFOline  |  June 16, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for June 16, 2011. I hope everyone is doing well.

Safety
Starting with safety, June is National Safety Month, sponsored by the National Safety Council. The council points to a stark set of statistics: accidental deaths reached an estimated 128,200 in 2009. Over 10,000 people a month die accidentally across our country. The council points to motor vehicle crashes, falls and overexertion as the leading causes of preventable death and injury.

Make sure you aren’t one of those people. If you want a good resource, go to the National Safety Council’s web site (nsc.org) for a lot of information on how to stay safe at home, at work, and on the road.

Compliance
The Department of Defense (DOD) is here this week for our bi-annual survey. We are part of the Civil Reserve Air Fleet (CRAF), and to participate in that government program, we have to pass muster from a team of experts. They will review our maintenance and flight operations and our business control systems. You will see inspectors on our aircraft and around our business. Please make them feel welcome and answer any questions they may have.

We always welcome outside auditors because there is value in a different perspective. We run an excellent airline, and every survey confirms that. But there are always new ways of doing things, and having experts from the DOD here often helps us see some. We’ll get the survey results back in a few months, and when we do, we’ll share them with you.

Business News
The International Air Transport Association (IATA) reported April international cargo traffic up 5.4% year-over-year. The strongest growth was among carriers from the Middle East (up 21.4%), followed by European carriers (up 13.4%) and North American carriers (up 7.9%). Carriers from the Asia-Pacific region--a place we fly--reported international cargo traffic down 2.6%. It is important to remember the negative impact of the earthquake and tsunami in Japan when you look at the Pacific numbers.

According to CargoFacts, UPS Chief Executive Scott Davis has downplayed any interest in acquiring the newly-independent TNT EXPRESS. He said UPS was focused on smaller scale acquisitions in eastern and central Europe and in Asia. Davis also indicated that UPS believed the US economy would probably grow at an annual rate of 2.9% in 2011.

Thank you
Finally today, I need to announce my departure from ABX Air. I’ve accepted a leadership role in another aerospace organization. My last day at ABX will be in early July. For the interim, Joe Hete will take over executive functions because he is the CEO of ABX, and John Starkovich will assume our day-to-day administrative functions.

My four years here have been very challenging and very rewarding. There is much to be proud of in what our team has been able to do together. ABX today is a completely different company than we were four years ago. We are executing on our plan for 2011, and though there is always work to do, we are very well positioned for long-term success. Though everyone has worked hard, I want to specifically thank Joe and my senior team for their leadership. I have learned a lot from them. It has been an absolute pleasure to work with you all. Thank you.

I’ll transition my responsibilities to Joe and John over the next couple of weeks. If there is any guidance I can provide you during this transition, please stop by and ask.

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. Take care. 


John Graber's INFOline  |  June 9, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for June 9, 2011. I hope this finds everyone doing well.

Safety
In Safety this week, for the first time in months, we have had an OSHA reportable injury. Actually, last month we had three – a sprained hand, a bruised hand, and a twisted ankle. Accidents happen in the routine events we all do everyday: walking in the parking lot, using stairs, carrying things. You don’t have to be involved in something exotic to be at risk of injury. Be careful.

While I’m talking about safety, summer is here with a vengeance. We’re seeing 95-degree days in Wilmington now. Make sure you’re doing what you need to do to stay safe in the heat. Stay hydrated, dress properly, and use sunscreen. Don’t become one of the heat casualties we’ll read about this summer.

Market Developments
The CargoFacts organization is reporting that air freight imports to China are rapidly approaching exports, when measured by tonnage. They point to Seabury APG figures that show 2010 exports at 2.27 million tons while import tonnage was 1.76 million tons. For the month of January 2011, import and export tonnage was virtually equal, with exports of 169,000 tons and imports of 168,000 tons. CargoFacts says the increase in air imports to China is driven by the increasing wealth of China’s citizens.

Whatever is driving the change, if it proves sustainable, it will fundamentally change the economics of the China air freight market. To fly a freighter full out of China, you have to fly it into China first, and for years that inbound trip has been almost empty, effectively raising the cost of the outbound freight. If China demand is balancing out, and it stays that way, the market could become more profitable. That’s good news for operators like us.

Tom Poynter
Most of you know by now of Tom Poynter’s passing. His funeral is today. Most of you knew Tom. He joined Airborne Express in 1985 as a manager, and retired in 2007 as our Senior Vice President of the Ground Department. An Air Force veteran, Tom earned the Bronze Star as a logistician in Vietnam. Tom and Priscilla were married 42 years and had three sons, one daughter, and eight grandchildren. Tom ministered in many churches around here, singing at many services. I got to know Tom as a man of action and integrity. He was someone who cared for our people and who was passionate about our business. Tom was a good man, and he’ll be missed by many.

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.


Jan Woolums' INFOline  | June 2, 2011
Good morning, everyone. This is Jan Woolums, Director of CVG Operations, with the INFOline for June 2, 2011.

Safety
Memorial Day weekend was the unofficial start of summer and also a weekend to show appreciation to our service men and women along with the veterans that have given so much to keep all of us safe.

This week also marks the end of the school year and the start of summer break. It's exciting for the kids and a change of routine for most parents.

That's why it's particularly important this time of year to make it a point to slow down and show more caution while driving through your neighborhood. What was a quiet cruise between the hours of 7 a.m. and 4 p.m. will now be filled with overly excited kids.

There's a lot going on, but we still need to stay focused on the weather. The official tornado season runs through the end of July.

CVG News
I would like to welcome Chris Carter to the ABX team in CVG. Chris recently accepted the position of Night Duty Officer (NDO) reporting to Joe Ezell in the Flight department. Chris communicates directly to the ABX flight crews on changes or requests that take place during the nightly operations. Chris will be a great addition to our ABX team in CVG.

The DHL/CVG Hub Operations recently welcomed Alan Bogard to his new role as Senior Manager of the Ramp and Tug Dispatch Operations. Alan has been with DHL since 2005 when he was hired as a Network Control Manager for the Wilmington hub. Prior to that Alan spent eight years with Emery Worldwide Express.

Next month it will be two years since DHL moved their hub from ILN to the CVG location. DHL has made good progress, hitting their goals for service in the United States. The last two years ABX has proven to be a reliable carrier for DHL. Through your hard work and determination to support our largest customer DHL, we have seen the number of ABX aircraft departing the CVG operation increase from 13 a year ago to 17 aircraft currently departing nightly from the CVG hub. It has been a very productive two years for both companies.

In February 2011, DHL announced it will be expanding its hub facility at the Cincinnati/Northern Kentucky Airport to support the growing demands. This will expand its existing aircraft parking apron and involve construction of nine new aircraft gates. The expansion will enable parking for nine additional wide-body aircraft that will connect the United States to Asia, Europe, and the Americas. The new aircraft gates will include a hydrant jet refueling system for a more efficient operation as well as the capability to de-ice aircraft at the gate. In March 2011, DHL began the process of land improvement, which requires the movement of the earth from the expansion site. September 2011is the projected completion date.

Milestone Anniversaries
I would like to congratulate several of our ABX employees for their years of service: 25 years, Steve Siedentop (LAX); 20 years: Capt. Robert Conway, Capt. Dennis Nelson, and Capt. Steven Tiernan; 5 years: Daniel Kells (PHX), Jess Kunard (SAN), Ricky McElwee, Robert Maciejewski, Blake Steiles (PDX), and Randall Wark (SAN); and 1 year: Michael Finn (JFK).

Congratulations, and thanks for all that you do for our company.

That's all the new for this week. Stay focused and be safe.


John Graber's INFOline  |  May 26, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for May 26, 2011. I hope everyone is doing well.

Safety
Severe weather has taken over 300 lives across the United States so far this spring. The Mississippi River is miles out of its banks along much of its run. In southwest Ohio, we’ve spent parts of two nights this week in the basement waiting out a tornado warning. With the power out, I had my teenage son get the survival radio out of the box and figure out how to use it while holding the penlight in his teeth. No issues, but it reminded me we should have gone through that before the sirens went off. I’ve got everything assembled now, including a First Aid kit. If you don’t think you need a reason to prepare yourself and your loved ones for bad weather, I’d ask you to reconsider. Prepare. Now.

Japan Update
I spent last week in Japan, meeting with our customers and reviewing our operation. We started flying for Japan Air Lines (JAL) in November. Much of the cargo on our flights belongs to DHL. Both those customers are very happy with our service. We had some engine issues in our first week of operations, but since then, we’ve flown 100 percent on time. JAL’s service goal for us is 99.3 percent on time, a very high standard. Thank you for your work in meeting it.

While I was there, JAL reported its annual results, its first since emerging from bankruptcy protection. The airline reported the highest profit in its history. As part of their restructuring to get out of bankruptcy, JAL parked its entire freighter fleet, so now ABX Air flies JAL’s only dedicated freighter aircraft. JAL’s freight department wants to grow that segment of its business, and we’re working closely with them to support their needs. As they succeed, we succeed. I’ve nothing firm to report today, but we’re working hard on making things happen in Asia.

Aircraft Deliveries
Since ATSG’s annual meeting, a bunch of you have asked me why we didn’t get the next group of Boeing 767-300s. It’s fair for ABX people to want all of ATSG’s growth to come to us, but that isn’t how the business is going to work. We’ve added five aircraft to our fleet since November – one 767-300 and four 767-200s. All of those airplanes are in active service today. There are limited dollars available to grow the company, and ATSG needs to spread its investment across its entire business line.

Memorial Day
Monday we commemorate Memorial Day. As we enjoy the freedoms our nation provides this weekend, let's all remember the thousands of men and women fighting to preserve those freedoms for us. They are a remarkable group of people. In the 103 months that Americans have been dying in a shooting war, every branch of the service, with the exception of the Army for a couple of months, has more than met its recruiting goals. In the most dangerous jobs in every branch, there are more applicants than slots. Our young people still win those jobs only through hard-fought competition.

When a young Army Special Forces applicant at Fort Benning pounded out his 100th pushup looking more like a piston than a person, then whipped through 125 sit-ups in two minutes, and then ran two miles in 11 minutes, the wiry First Sergeant noted the performance on his clipboard. “Average.” There are thousands of young men and women like that in our service today. One of them is Second Lieutenant Sam Janasov, who graduated this week from the United States Air Force Academy. Sam’s dad, Steve, is our Director of Safety. Sam is going to pilot training with the Navy in Pensacola, Florida this summer. Congratulations, Sam and Steve.

For every service member, there are thousands of fathers, mothers, and family members. All of them are used to spending holidays like Memorial Day away from their loved ones. This weekend, thank our service members, our veterans, and their families for all they do, and all they’ve done for us.

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.  


Bob Gray's INFOline  |  May 19, 2011
This is Bob Gray with the May 19, 2011 INFOline.

Safety
Recently we had an employee traveling on business who was robbed while walking back to his hotel. He was not injured. The incident occurred at approximately 11:30 p.m., a half a mile from the hotel at which he was staying. Remember, especially when traveling away from home, be very aware of your surroundings; and when walking in areas which might be unfamiliar to you, avoid being out alone especially after dark. We are careful to select hotels that provide a secure environment for our employees and hotels that are often used by other major airlines. Venturing out late at night, alone, can be risky in any neighborhood, especially one in which you may not be familiar.

About Our Simulators
One of the things we are most proud of at ABX is the level and quality of training that our flight crews receive. Besides the classroom, most of that training occurs in our Boeing 767 simulator. The ABX simulator is a “Level C” certified simulator, which means that crewmembers may receive all of their flight training, including their check rides, in the simulator. Crewmembers trained in a “Level C” simulator may first operate the actual aircraft in revenue service with passengers or freight on board. This equipment is maintained to very high standards and receives regular FAA inspections. For those of you who have never “flown” in one of our simulators, the quality and realism of the visual display, the sound system, and the motion combine to make it easy to forget that you are simply bolted to the ground in a big box, rather than actually flying in an aircraft.

Our simulators are managed and maintained by a department of four highly qualified technicians: Chris Custis, Don West, Richard Kline, and Michael Goodman; and led by Manager Jack Greenwood. Together these individuals, with over 90 years of experience at ABX alone, have managed to keep the Boeing 767, the DC-9, and the DC-8 sims operating and performing at 99.6 percent, 99.8 percent and 100 percent reliability respectively. In addition to providing an excellent tool for the training of ABX pilots, the simulators bring in hundreds of thousands of dollars in revenue each year from leasing arrangements to other airlines.

Customer Update
Cargo Facts has reported that Deutsche Post DHL reported a first quarter consolidated net profit of 325 million euros, down 81.4 percent year-over-year, as total revenues rose 6.9 percent to 12.84 billion euros, and operating profit jumped 22.9 percent to 629 million euros. DPDHL is exceptionally pleased with the result, pointing out that the big drop in net profit from 1.75 billion in last year’s first quarter to just 325 million euro this year is the result of the inflation of the first quarter 2010 results by almost 1.5 billion euro by derivative valuation effects related to the sale of Postbank.

Adjusted for this effect, DPDHL said net profit was actually up by nearly 30 percent. Revenue was up in all four of the company’s major operating divisions, and operating profit was up substantially in all divisions except Mail, which reported a 4.1 percent decline. Revenue in Express division rose 5.5 percent to 2.77 billion euros, and operating profit almost doubled to 216 million euros.

It is worth noting that the revenue increase actually understates Express growth, because the first quarter 2010 figure includes revenue increase of 125 million euros from the day-definite domestic businesses in France and the UK. These businesses were sold last year, and removing their impact from the first quarter 2010 figure leads to an adjust revenue increase of 10.8 percent.

Revenue in DHL’s core European region declined 5.1 percent in the first quarter, mostly as the result of the sale of the day-definite domestic businesses in France and the UK, but substantial increases in the Americas, Asia Pacific, Eastern Europe, Middle East and African regions more than compensated for this drop.

That's all for this week. Thanks for all you do, and your hard work and dedication to ABX.


John Graber's INFOline  |  May 12, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for May 12, 2011. I hope everyone is doing well.

Safety
The weather is warming up in the Midwest. Remember to think Safety as you and your family move outdoors. You need to know the signs of heat distress, and you need to know how to avoid it in the first place. Stay hydrated and protect yourself from the sun. Keep yourself safe this summer.

Business Update
ATSG held its annual shareholders’ meeting this week, reviewing 2010 results, and announcing its first quarter 2011 numbers.

You need to go to the ATSG web site for all the details – that’s ATSGinc.com – but I’ll summarize the major points here. Remember these results are for all of ATSG. That’s ABX, Capital Cargo, ATI, AMES and AGS all together – everything ATSG does. These are not ABX Air’s numbers alone. Our company’s results are rolled up into ATSG’s ACMI business.

ATSG reported $4.6 million in pre-tax earnings for the first quarter of 2011, compared with $10.8 million in last year’s first quarter. This year’s number was lower because ATSG refinanced its credit facility, and wrote off $6.8 million in non-cash charges from the old one to get that done. Look at the web site for all the specifics behind that transaction. If you adjust results for the refinancing costs, ATSG’s pre-tax earnings were actually up 57% year over year.

ATSG’s original financing package was scheduled to come due next year. As you have read, the current financial climate makes this a good time to borrow money, so rather than wait, ATSG decided to go to the market now, and came away with a new five-year agreement that is more favorable than the old package. Of note, is that there were more banks than we needed wanting to lend us money. That’s always a good position to be in.

Revenue for the first quarter – the total amount of money ATSG was paid – increased 9 percent to $175.1 million, driven by higher aircraft leasing revenues and the higher cost of jet fuel reimbursed by our customers.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a measure of a company’s cash flow. ATSG’s EBITDA was up 14 percent from the first quarter of 2010 at $37.8 million.

ATSG reports two business lines in its public filings now: aircraft leasing through CAM, and ACMI Services. ACMI is Aircraft, Crew, Maintenance and Insurance – our line of work.

In ACMI Services, ATSG reported a loss of $2.5 million for the quarter. Though block hours were up 12 percent, revenues were $102.5 million, down 13 percent from $117.4 million in the first quarter of 2010. This year isn’t quite an apples-to-apples comparison over last, because in 2010 this line of work included our flying under the old cost-plus DHL agreement, and $3.6 million in last year’s earnings came from severance and retention payments from DHL. Those differences were part of the $7.4 million ATSG made in the first quarter of 2010.

This year, ATSG reported that its airlines, and in particular Air Transport International, experienced significant operating challenges that affected pre-tax results. Principal factors were unanticipated costs to repair a Boeing 767 freighter prior to deployment to a leased customer, and revenue shortfalls and operating expense increases due to unanticipated downtime for DC-8 combi and 767 aircraft operating in remote locations.

Cargo Aircraft Management (CAM) recorded substantial increases in revenues and pre-tax profits during the first quarter. A big driver for CAM’s results is the new DHL CMI agreement we signed last year. CAM agreed to provide 13 Boeing 767 freighters to DHL under seven-year leases. All of those aircraft are now leased to DHL by CAM. We operate the CAM-owned 767s for DHL, plus the four additional DHL-owned 767s.

CAM's revenues were $32.1 million during the first quarter, up 80 percent from 2010. CAM’s pre-tax earnings were $13.5 million, more than double last year. At the end of March 2011, CAM had 61 aircraft under lease, 17 to non-ATSG companies.

Aircraft Placements
ATSG also reported it has six 767-200 and three 767-300 aircraft due out of conversion this year. Two of the 767-200s have been leased to RIO Linhas Aéreas, S.A. of Brazil, and another 767-200 entered service in April under an ACMI agreement with West Atlantic in Europe. ATSG also reported that the first of three 767-300s will come out of modification in May. It will be operated by ATI under an ACMI agreement with a customer serving markets between North and South America beginning in mid-June. ATI has a three-year ACMI agreement to operate two 767-300 freighters for a customer serving the Americas and Europe.

In speaking to the first quarter results, Joe Hete said, “Our goals for 2011 are the same as they were for 2010: to generate strong cash flow for shareholders as we acquire, convert, deploy, maintain and operate freighter aircraft for some of the world's leading air-cargo network operators, with margins that reflect our unique ability to deliver complete air cargo solutions for our customers. We are proceeding with our plans to deploy eight additional 767 freighters to lease and ACMI customers during the remainder of 2011, and to acquire additional feedstock aircraft we can profitably convert and deploy in 2012. This past week, we agreed with Qantas on the purchase of an additional 767-300 passenger aircraft which will be acquired in late June and converted to a freighter early next year.”

I’ve covered a lot of material today and summarized a lot. I encourage you all to go to the ATSG web site for detailed information on the quarter’s results.

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


Terry Scherz' INFOline  |  May 5, 2011
Good Morning everyone. This is Terry Scherz with the ABX Air INFOline for May 5, 2011.

Safety
The recent counter-terrorism action in Pakistan has prompted the US State Department to issue a Worldwide Caution, alerting US citizens traveling and residing abroad to the enhanced potential for anti-American violence by Al-Qaida and other extremist groups. The cautionary warning urges US citizens in areas where strong anti-American sentiments may exist, to limit their travel outside their homes and hotels, and to avoid mass gatherings and demonstrations. The alert also advises US citizens to stay current with media coverage of local events and to be aware of their surroundings at all times.

While this Worldwide Caution is not based on any specific credible threat information, it is meant to remind all US citizens abroad of the possibility of terrorist activities in the aftermath of bin Laden’s death at the hands of US forces. While reaction from the rest of the world has been, for the most part, supportive; it is reasonable to believe that there may be those who choose to use these events as incentive to resume or even step up their extremist activities. As we all know, the aviation industry has long been a target for these types of activities. For this reason, it is imperative that we maintain a heightened sense of awareness and continue to remain vigilant against those who threaten our security and our way of life.

For those of you who may not know, the Transportation Security Administration (TSA) has recently done away with its color-coded Homeland Security Advisory System and has replaced it with the new National Terrorism Advisory System (NTAS). This new system will more effectively communicate information about terrorist threats by providing timely, detailed information to the public, government agencies, first responders, airports and other transportation hubs, and the private sector. It recognizes that Americans all share responsibility for the nation’s security, and always should be aware of the heightened risk of terrorist attack in the United States and what they should do. There no longer will be a “standing” threat condition that exists at all times. NTAS alerts will be issued only when credible information is available and will be issued only at two levels: ELEVATED or IMMINENT.

  • An “Elevated Threat Alert” warns of a credible terrorist threat against the United States.

  • An “Imminent Threat Alert” warns of a credible, specific, and impending terrorist threat against the United States.

All NTAS alerts will provide a concise summary of the potential threat, information about actions being taken to ensure public safety, and recommended steps that individuals, communities, businesses, and governments can take to prevent, mitigate, or respond to the threat. All NTAS alerts also will contain a “sunset provision” indicating a specific date when the alert expires.

Please visit www.dhs.gov/alerts for more information on the NTAS alert system. This website includes a sample NTAS alert as well as other information about how to sign up for NTAS alerts via email, Facebook, Twitter, and other social media. Again, that web address is www.dhs.gov/alerts.

Thank you for your continuing efforts.

Boeing 767 Aft Pressure Bulkhead Replacement
ABX Air and our sister company, AMES, are about to embark on a very challenging and interesting project.

Operators of early model B767-200 aircraft reported finding cracks in a major structure of the aircraft aft pressure bulkhead (APB). These cracks were found during routine targeted inspections; and Boeing, the manufacturer of the aircraft, developed and approved repairs for the operators of these aircraft.

ABX Air is a large operator of these early model 767 aircraft.

The APB is a large dome-shaped structure approximately 15 feet in diameter, as large as the fuselage is round. It is the primary structure of the aircraft that provides strength and form to the Aft fuselage of the aircraft and connects and supports the entire tail section to the aircraft fuselage.

Because we are a large operator of these early aircraft, Boeing approached ABX back in 2004 to collect maintenance inspection findings to determine an eventual permanent solution. Final results of Boeing’s investigation determined that the APB would need to be replaced.

A couple years ago, Boeing approached ABX to ask if we would be willing to prototype an installation during one of our heavy maintenance visits, for which they would provide a Boeing Representative for on-site technical support.

We quickly contacted AMES to see if they would be interested in partnering with us on this significant effort, and they readily accepted our offer.

Keep in mind, there has been only one 767 APB ever replaced, and it was accomplished by a specialized Boeing Team. No aircraft operators or MROs have ever changed a B767 APB.

For approximately the last two weeks, a special oversized truck with our APB has been working its way from Texas where the APB was manufactured. We expect it to arrive in Wilmington sometime next week.

Later this summer, AMES--with support from ABX and Boeing--will remove the tail from 752AX and complete this elaborate project. We will keep you updated.

Shareholder Meeting
ATSG's Annual Shareholder Meeting is next Tuesday, May 10 at Wilmington College's Oscar F. Boyd Culture Arts Center starting at 11 a.m. If you can fit it into your busy schedule, you are invited to attend.

Paint the Town Red
This Friday, May 6, ABX Air employees are participating in the American Red Cross “Paint The Town Red” event to raise money for the local American Red Cross. Please see the email on this event, MyABX, posters, or your supervisor for details. It should be a fun day with food, a raffle for some great prizes, and a group photograph.

Anniversaries
Employees who are celebrating milestone service anniversaries this month are:

  • Dave Speaks – Flight Department – 1 year

  • Jan Kania – Flight Department – 15 years

  • Bill Maxwell – Maintenance Department – 15 years

  • Patrick Sutton – Flight Department – 15 years

  • Stacia Garen – Administration – 20 years

  • Walter Pico – Maintenance Department – 20 years

  • Capt. Richard Taylor – Flight Department – 20 years

  • Capt. Joe Ezell – Flight Department – 25 years

  • Keith Newton – Maintenance Department – 25 years

  • Capt. Ben Wolters – Flight Department – 25 years

  • Diane Hibbett – Flight Department – 30 years

Mother's Day
And finally, this Sunday is Mother’s Day; take the time to show appreciation to your mother, and the mother of your children, for all the love and support they give.

That is all I have for this week. John Graber will be back with the INFOline next week.


John Graber's INFOline  |  April 28, 2011
Good morning ladies and gentlemen, this is John Graber with the ABX Air INFOline for April 28, 2011.

Safety
The severe weather we’re seeing across the nation this spring is a perfect way to start today. I always talk to you about Safety during transitions – cold weather to warm, day to night, inside to outside. The convective activity we’ve seen in the last two weeks demonstrates exactly why we all have to understand our roles in operational Safety.

In April we’ve evacuated ramps, diverted aircraft, and suspended operations due to high winds. We’ve faced severe thunderstorm warnings, flash flood warnings and tornado warnings. The FAA evacuated its control tower during sort operations in CVG. Two ABX aircraft have had lightning strikes, and the wind has blown ramp equipment into one of our jets – but we have had no injuries. And we have flexed in response to the huge weather systems we’ve faced, skillfully moving aircraft around the weather, minimizing its impact on our customers.

We’ve taken this round of severe weather as an opportunity to review our severe weather procedures. Our Director of Safety, Steve Janasov, and our Director of CVG Operations, Jan Woolums, are coordinating that review with our operators. If we need to make changes, we will. In the meantime, if you see something we need to do differently, let me know. And thank you all for the hard work and professionalism it takes to run Safely every day.

Japan Operations
We are finalizing moving our Asian operations from Tokyo to Osaka next month. Our plans are to have the major elements of the move complete by May 9. DHL is changing their schedule slightly, and has asked us to adjust our operation there. Though it is not in the news everyday anymore, we are still paying careful attention to the safety of our operations in Japan. Aftershocks are still common. Radiation levels at the airport in Narita are stable, and below typical background levels.

DHL Update
All four of the DHL-owned 767-200 aircraft we have told you about are now on our certificate and in operation for DHL. They are using one of those planes to fund a paint line, and they intend to paint most of their leased 767s in their traditional yellow livery. They’re using the jets to provide a second crewed operational spare in CVG, to operate to Newark, and to run a second Miami flight. Plans for the fourth airplane aren’t yet public.

AMES Hangar Funding
Ohio State Representative Cliff Rosenberger announced Monday that the Ohio Department of Development will provide $15.2 million for the Clinton County Port Authority to build a new hangar at the Wilmington Air Park. The port authority would use the money to build a 100,000 square foot Joint Use Maintenance and Paint (JUMP) hangar and lease it to AMES, our sister ATSG company. AMES would hire more than 200 people to work in the new facility. Hangar space is a large constraint for AMES. If the project moves forward, the new hangar could be complete next year. Joe Hete said that knowing the state has committed to support the project allows ATSG to “complete an analysis of the project and move toward consideration by the ATSG Board of Directors.”

ATSG Annual Shareholder’s Meeting
The annual meeting of ATSG shareholders is May 10 in Wilmington. Joe Hete and Quint Turner will review ATSG’s 2010 results at the meeting. All ABX Air employees are welcome to attend. You can see all the meeting details on the ATSG website at ATSGinc.com.

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.  


Eric Plas' INFOline  |  April 21, 2011
Good afternoon. This is Eric Plas with the ABX INFOline for April 21, 2011.



Safety
It is springtime in Ohio which means it is also the time of thunderstorms and tornadoes. Please take the time to be aware of the weather conditions when at work or on your personal time.

On-Time Performance
It was that spring type of weather that hit the CVG operation earlier this week on Tuesday night/Wednesday morning. Through the teamwork of the flight crews, AMES, dispatch and maintenance control, the effects on DHL operations were kept to a minimum with no delays attributable to ABX. Our thanks and appreciation to everyone for a great job. ABX is currently at a 98.92% on-time performance level for the month of April 2011.

AMES
While ABX survived the inclement weather, our sister company, AMES, did not fare as well. The roof of Hangar 1005 was peeled back and left a sizeable hole. Thankfully and most importantly no one was hurt. AMES also is awaiting word as to whether or not there will be state funding assistance for the building of a needed additional hangar here at the airpark. Let's keep our fingers crossed as it would not only be good for ATSG business but would also provide potential growth and good jobs for the Wilmington community.

Employees
Of interest to everyone, discounted Kings Island tickets have been distributed to supervisors and managers. They are at a $22 discount for adult and a $9 discount for Junior/Senior tickets. There are 10 dates for which the tickets are valid so please take advantage them.

Friday, April 22 is Earth Day and everyone should be aware that ABX continues to do its share of recycling. Jean Radcliffe from our Contracts & Procurement Department advises that ABX and the other ATSG companies at ILN have recycled over $10,000 worth of plastic bottles, aluminum cans, cardboard and paper since we began tracking the amount being recycled back in December of 2009. Every bit helps!

Also, as you all know the former ABX Fitness Center is now privately owned and operated as “Built For Fitness”. A lot of work has been done to brighten the place up so if you get a chance, go down and take a look. If it fits what you are looking for, the friendly folks will gladly sign you up for a membership. Whether you choose Built For Fitness or another facility or perhaps just choose on your own to walk and exercise more, your health and wellness is important. You cannot afford to not find the time to pay attention to your health.

Operations
Easter and Mother’s Day are great holidays for flowers, and it means more business for ABX. For our Miami customer, SAS, we’ve doubled our flying out of Bogota and will move more than a million pounds of flowers this week alone. So buy flowers; it’s good for the recipient and good for business!

Also, in last week's INFOline, John Graber advised that the Japan operation for DHL/JAL was moving to Osaka. The targeted date for the start of that operation at the new location is looking to be May 9. We will keep you updated as events develop.

Easter/Passover
Whether you celebrate Easter, Passover, some other religious holiday or none at all, please accept the best wishes from all the executives and management at ABX for a fun and safe weekend with your families.

That is all for the INFOline this week. Thank you and have a great week.


John Graber's INFOline  |  April 14, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for April 14, 2011. Much of the nation is enjoying the start of spring, and we’ve still got de-ice on call in Cincinnati – respect the conditions where you are.



Safety
In Safety this week, I want to thank you all for your performance over the winter. This is our second year of really exceptional winter Safety performance – with no lost time or OSHA events. None. And you chalked up that performance in what by every measure was a truly challenging winter. Thank you.

This was also our second winter in our CVG hub. Though we can always do better, you ran the winter very well. Our flight crews and flight operations set an excellent example for Safety in demanding conditions. Our maintenance and ground organizations did a nice job night after night, and Mike Ebert and his AMES line maintenance organization gave us first rate support.

Safety is our most important product – and you are delivering it. Thank you. Don’t let up.

DHL
A year ago we announced our long-term agreement with DHL. That deal was to operate thirteen 767-200s for five years, with renewal periods that can extend it to seven or even ten years. In our first year operating under the new agreement, we have delighted DHL with our service. We’ve flown more than 98 percent on time, flown more than 100 extra flights for DHL, and cancelled precious few. We’ve continued strengthening our relationships with DHL’s operators and senior leaders. In large part because of our excellent service, DHL has added four more aircraft to the base agreement. We’re also flying transatlantic service and Japan-China service for DHL. If you just count tails, that represents a 46 percent increase in our DHL business in this last year. And we have recalled pilots and added technicians in support of that expanded flying.

DHL’s improving fortunes are the foundation for our growth in supporting them, and Deutsche Post DHL – DHL’s parent – is seeing its business improve. DP DHL’s 2010 revenues increased 11 percent over 2009, and its earnings before interest and taxes were up 50 percent. In Deutsche Post DHL’s express business, where we operate, revenues were up 15 percent year-over-year. In a recent investor presentation, DP DHL noted of its airlines, “excellent air capacity utilization while service levels very high.” I believe that comment is, in large part, ABX Air. They also noted that price pressure is “slightly fading, however, competition for volume still fierce.” Take from that what you will, but what I read into it is that FedEx and UPS are still fighting for every package. Low costs and high reliability are two of the most important ingredients DHL needs in its battle for more volume, and we help provide them both.

Japan Operations
Our Asian operations have run very well in the month since the earthquake off the coast of Japan. ABX Air’s pilots, technicians, and leadership organizations have done a great job of maintaining safe operations, and we’ve flown 100 percent on time for factors in our control in the last month. Radiation has not been a factor in our operations to date since we are over 100 miles south of the Fukushima Daiichi facility, but aftershocks and earthquakes have. Our people on the ground – like millions of others – have worked through these difficulties really well. Thank you.

Given all the concern about staying in Tokyo, I think everyone associated with our operations will be glad to know that we’re working to move our Japanese base of operations from Tokyo to Osaka next month. DHL’s requirements have changed, and they have asked us to adjust our operation accordingly. Making moves like these in Japan can take a while in normal times. The regulatory system is complex, and there are many issues we have to overcome associated with airport facilities and the availability of maintenance.

The Osaka area reports much lower levels of earthquake activity than Tokyo, and of course is 250 miles farther away from Fukushima than Tokyo.

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


John Starkovich's INFOline  |  April 7, 2011
Good Afternoon, this is John Starkovich with the INFOline for April 7, 2011.

2011 Pay Plan and Employee Incentive Plans
This week, informational briefings were given on the ABX 2011 Pay Plan. The new system for merit pay increases for qualifying employees will begin on June 27. In addition, the ABX Air Management and Employee Incentive Plans were explained. The plans provide eligible full-time and part-time ABX employees the prospect of receiving additional monetary incentives based on reaching goals for quarterly ‘on-time’ and ‘financial performance’ and are in effect as of April 1. Like the recently implemented Paid Time Off plan, these programs were redesigned to provide the employee group with new opportunities to share in the success of ABX and to focus not only on service but also on profitability and cost controls. If you have unanswered questions about any of these programs, please speak to your supervisor, manager, or one of the folks from Human Resources.

Japan Operations
Last month our Director of Safety, Steve Janasov, had the opportunity to spend a week in Japan assessing and observing our operation during the aftermath of the devastating earthquake, tsunami, and reactor problems experienced at the Fukushima power station. The station is located approximately 120 miles to the northeast of Narita airport (NRT). He reported finding our employee group doing well, and aside from the day of the actual earthquake and tsunami, they have sustained our operation in support of Japan Airlines (JAL) without missing a scheduled flight, in spite of aftershocks and other distractions such as power outages and transportation challenges. The ABX management and safety team continues to maintain contact with our employee group to closely monitor the situation for new developments, including during today’s 7.4 level earthquake. Our thoughts and prayers remain with those located well to the north where substantial damage and devastation has occurred due to the initial event. We continue to have every confidence that our resourceful and resilient Japanese friends will overcome this tragedy with record speed.

Safety Management System
Steve has received lots of question from employees lately concerning the requirement to implement a Safety Management System (SMS) here at ABX, and while he does not claim to be a subject matter expert, he wanted to share a brief overview. First, SMS implementation will occur via the typical Notice to Proposed Rule Making procedures involved with our public law process. While the timeline may vary, the final rule is targeted for July, 2012 and would become effective 60 days later. Currently, air carriers will be required to present an implementation plan to the FAA sometime in March, 2013. We will then go through various levels of implementation with the goal of reaching the end-state of ‘continuous improvement’ sometime in 2015. While that sounds like a long way off, we must remember that SMS is a detailed process that will become embedded within the carrier’s organizational fabric and the lead time to arrive at the desired end state takes several years to achieve. A number of air carriers have already embraced this program and are in various stages of implementation.

SMS is recognized by the International Civil Aviation Organization (ICAO) and other civil aviation authorities as the next step in the evolution of aviation safety and involves itself chiefly with organizational performance. The preceding steps were technical, involving mechanical and technological improvements and human, involving crew resource management and other human performance skill enhancements. The SMS proponents felt the next logical step towards actions that could have broken a chain of events leading to an accident or incident were contained within the organization itself.

The major components of SMS are a safety policy that establishes the senior management’s commitment and defines methods, processes, and the structure needed to meet safety goals; a safety risk management process that determines the need and adequacy of controls based on the assessments of acceptable risk; a safety assurance program charged with evaluating the continued effectiveness of implemented controls and supporting the identification of new hazard; and finally, all of this occurs in an atmosphere of safety promotion, which includes training, communication, and other actions to create a positive safety culture at all levels in the workplace.

Like our new PTO, Pay Plan, and Employee Incentive Plans, the eventual implementation of SMS will represent a departure from the old way of doing business in some ways. In other aspects, we can expect many of our present safety-enhancing programs--along with our continuing commitment to partner with our workforce by soliciting safety improving recommendations anonymously, by name, or by committee--to remain intact and become incorporated into the comprehensive SMS process.

That’s all for this week’s INFOline. Please have a great day and a safe and productive April!


John Starkovich's INFOline  |  March 31, 2011
Good afternoon. This is John Starkovich with the ABX INFOline for March 31, 2011. We have a number of items to cover today so I will get started.

On-Time Performance
ABX Air is currently at a 98.63 percent on-time performance level for the month of March.

Safety
ABX Air is scheduled for its Department of Defense (DOD) audit during the month of June. These audits are done in two-year cycles. We also are scheduled for an IOSA audit in August. This will be the third such audit for ABX, and we appreciate the efforts of Steve Janasov, Director of Safety, in managing ABX through these audits.

Maintenance
Congratulations to the Maintenance Department. The fiftieth B-767 cargo conversion has been completed. It is really a milestone and an accomplishment. In addition, we have reached four consecutive months of 100 percent reliability performance in the Japan operation. Much work and dedication from many folks has contributed to reaching this level of performance, and you all have our thanks and appreciation for a job well done.

Flight
There are two items from the Flight Department.

First, Flight has been selling simulator time on all three simulators. Through the month of March, it is looking to exceed $150,000. Kudos to Jack Greenwood and his troops for doing a fantastic job.

Second, on the legislative and regulatory front, the FAA Reauthorization Bill, which authorizes funding for the FAA, is currently being considered in Washington, DC. At the same time, and on a different track, efforts continue on Flight and Duty time review and reform as part of the rulemaking functions of the FAA. Both of these have an impact on all airlines, including ABX Air. Completion of both of these efforts in a timely, diligent, and informed manner will enhance and promote the interests of all stakeholders.

Japan Update
The Japanese Ministry of Land, Infrastructure, Transport and Tourism indicated in a recent release that all four major airports in Japan (which excludes Sendai) have been operating normally. Currently there is no restriction on landings and take-offs of all aircraft. Additionally, the areas critically affected by the nuclear power plant accident are limited, and radiation at a level that has harmful effects on human health has not been detected at any of the four major airports in Japan. The web site for this and more information is www.mlit.go.jp/koku/flyjapan_en.

Transition Center
Just a quick note that we have been informed by the Transition Center management that they intend on consolidating their offices into the downtown Wilmington office. This means that the center will be leaving Building 2 by the end of May. The Transition Center has helped many former ABX Air employees, and I want to thank all of the folks over there for their fine service over the past couple of years.

Employee Recognition
I would like to congratulate the following employees for their milestone anniversaries in March and April: Captain Ken Norton for 35 years, and Jan Woolums for 25 years. The following folks have 20 years here at ABX: Captains Bruce Douglas, David Lawhorne, Bradley Maxwell, Patrick McCauley, Scot Prescott, and Kenneth Taylor. Also, for 15-year employees: David Bedard, Corey Butler, Chris Cousineau, Richard Fellie, Scot Kingan, Richard Reid and Bryan Windham. And, 10 years recognition goes to Ron Dusseau and David Kircher.

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


John Graber's INFOline  |  March 24, 2011
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for March 24, 2011.

Safety
Starting with Safety again this week, I’m proud to be able to tell you that our business had no lost time or OSHA cases during January or February. Zero. That is a good start to the year, but remember, for all of 2010 we were nearly perfect, with a rate below two in each category. Don’t let up. Please help us keep each other Safe, and keep this excellent record as we move into spring.

Japan
Like every major airline, we continue our Japan operations. We’ve flown eleven rotations since the earthquake struck – all of them on schedule. These are difficult times to be in Japan, and I want to recognize the dedication and efforts of our people on the ground there. Technicians Greg Daniel, Gabriel DeLaPena and Reuben Mancera have stuck with us and made our operation successful, as have Captains Tom Schulz, Ben Raugstad, and First Officers Jim McCauley and Mark Thom. Thank you all very much for working through all the issues you have. You’ve faced aftershocks, a flood of conflicting information, and the stress of figuring everything out while 6,556 miles from your base. Thank you, gentlemen.

Our Director of Safety, Steve Janasov, has been in Japan almost a week now. We dispatched him quickly. Steve met all our people on the ground in Japan, surveyed the situation in Tokyo and out at Narita, and has flown our trip to Osaka and Shanghai. Steven has confirmed what our maintenance and flight operations leaders get through their frequent discussions with our team in Tokyo – that things are Safe, and it can be a challenge to be in Tokyo today.

Our Chief Pilot, Captain Joe Ezell, got to Tokyo Monday, as did our international maintenance manager, John Chiaffitelli. We will make sure our people on the ground have access to our leadership team. Our Tokyo station manager, Shig Takahashi, has been a real hero for us through this disaster in his homeland. My special thanks to Shig-san. We could not do what we’re doing without you there.

As I said last week, we watch the situation in Japan every day, several times a day. We rely on official sources for the factual information we use, and we’re providing links to most of what we see on ABXnet. I encourage you to go to the sites and read the latest information for yourself.

As of today, the US government says, “Within the 30-kilometer perimeter established by the Japanese government, aerial measurement data shows the degree of radioactive contamination at ground level varying considerably by location, with the most affected areas thus far stretching to the northwest of the reactor site, well within the 50-mile recommended perimeter.”

The government goes on to say, “Farther from the reactor site, radiation monitoring…all indicate that levels of radiation measured in Tokyo…remain at background levels, well below levels which are dangerous to human health.”

One other important data point from the US government is, “US government experts have also continuously monitored radiation levels on Embassy grounds since March 14, using sophisticated radiation detection meters including high-volume pump samplers that collect information on a 24-hour basis. We have consistently observed normal background levels of radiation.”

The information we have indicates that our people are Safe working in and flying from Tokyo. We understand that things can change there, and if they change for the worse, we’re ready to quickly adjust our operations.

Junior Man Events
In February we junior manned 12 captains and 11 first officers – 23 people. Those numbers are less than half of January’s, and December’s, and they mean we’re doing a good job of matching the number of pilots we have to the amount of flying we’re doing. Late last year we were short of where we wanted to be with our crew force, and I thank all our pilots who helped us through that transition.

If you don’t fly for us, you’ve probably never heard of a junior man. When an airline “junior mans” a pilot, it forces the pilot with the least seniority to fly a trip that can’t be covered any other way. Junior manning is an emergency valve many airline contracts allow. It is disruptive for the pilot, and expensive for the airline, so it is in everyone’s interests to keep junior man events to a minimum. We will always have some small number of junior man assignments, but if we are doing our jobs right, we won’t return to the higher numbers we had late last 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.


John Graber's INFOline  |  March 17, 2011
Good morning ladies and gentlemen. This is John Graber with the ABX Air INFOline for March 17, 2011.

You know of Japan’s earthquake, tsunami, and the subsequent nuclear reactor issues. Our thoughts and prayers go out to the millions of people impacted by this unprecedented series of disasters. ABX Air has offered our help as a company, and many of you are helping individually. If you are looking for a source for donations, consider the Red Cross.

Shig Takahashi, our manager in Tokyo, is our lone Japanese national employee. Shig, his wife and two children live west of Tokyo, and we are glad to be able to report that they are all right. When the earthquake struck, in addition to Shig, we had three mechanics, two family members, and four pilots on the ground in Japan. Everyone is Safe.

Like American Airlines, Atlas, Continental, Delta, Evergreen, FedEx, United and UPS, we’re operating in and out of Tokyo today. We’re operating because it is Safe to do so, but I understand that looking at the media reports, that decision isn’t necessarily the intuitive one, so I want to walk you through how we make these decisions.

We’ve assembled a team of senior flight operations, maintenance, HR and Safety personnel to constantly monitor the situation in Japan, and review what we are and should be doing there. We start from the point of view that we are not experts on these issues, and that the media gets lots of things wrong. We rely on governmental authorities to tell us when it is Safe to fly and be in Japan, and when it is not. We cross-check our decisions with FedEx and UPS, the two other large freight operators in Asia.

Since the earthquake, we’ve been in contact with or monitored guidance from the FAA, the Nuclear Regulatory Commission, the Department of Homeland Security, Customs and Border Patrol, the State Department, the Tokyo Electric Power Company, the Japanese Nuclear and Industrial Safety Agency, and the Japanese Civil Aviation Board.

The consensus today, is that, though the situation at the Fukushima Dai-ichi reactors is very serious, with over 100 miles between those reactors and our operations in Tokyo, we have an adequate buffer. Every airport around Tokyo is open, and the Japanese government has given no indication they are going to close them.

Today Customs and Border Patrol (CBP) officials said its scientists believe the risk of an aircraft operating in Japan being contaminated “remains very low”. CBP said that for the last 10 years it has routinely spot-checked arriving international flights for radiation. In those 10 years CBP said it has seen 580,000 alerts for possible radioactive issues. CBP resolved those alerts, every single one, satisfactorily. Alerts came from things like medical radioactive cargo.

Since the earthquake, CBP is checking every flight arriving in the United States from Japan, and CBP officials said they have seen nothing that alarms them. There have been indications of radioactivity in some cargo, but they have seen no higher levels than they saw in the last 10 years. The highest levels they’ve seen since the earthquake equaled half the amount of radioactivity a person would get flying in an airliner for an hour.

In spite of facts like that, there is a lot of concerning information out there. Yesterday the US State Department issued a Travel Warning advising against non-essential travel to Japan. Then today, March 17, the White House said that the US government is “not encouraging an evacuation of American citizens from Japan. American citizens who are within a 50-mile radius of the nuclear reactors are being instructed to evacuate that area. Outside of that area, we’re urging American citizens to carefully monitor both our guidelines and the guidelines of the Japanese government.”

Our operations in Japan are important, especially so in times like these. But they are not important enough for us to take risks with the Safety of our people. If we ever think we cannot operate Safely, we will stop. The FAA and Japanese aviation authorities support our operations in Japan today, and have committed to tell us – and all the other carriers operating today – if something changes.

We think our decisions are sound, based on the facts we have today. If you see anything we have overlooked, please let us know.

We’re putting the latest information we have on our ABX intranet, so you can see the latest material we are working with.

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  |  March 10, 2011
Hello, this is Tammy Voss with the ABX Air INFOline for March 10, 2011. I hope everyone is doing well.

Safety & Compliance
As we transition from winter to spring, it is more important than ever to make sure that we are following procedures and training during adverse weather. We should not take chances during these adverse conditions, and you should focus on keeping both yourself and your co-workers safe.

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 a number of anniversaries to celebrate this month. Richard LaChance, Aircraft Maintenance Support, is celebrating 25 years with ABX. Crew members David Lawhorne, Pat McCauley and Scot Prescott are all celebrating 20 years of dedicated service.

We would also like to take this opportunity to congratulate John Chiaffitelli in Aircraft Maintenance on his award of the Silver Wings of Excellence. John worked tirelessly with DHL, JAL and the JCAB to insure the successful start up of ABX operations in Japan. On behalf of everyone at ABX, congratulations and thank you!

On a sad note, Neal Cook, Aircraft Maintenance, lost his battle with cancer on Feb. 24. Neal had been a dedicated and loyal ABX employee for 31 years. Neal was a positive influence on everyone who had the privilege of working with him. His upbeat attitude, work ethic and sense of humor will be missed but not forgotten.

Performance
I am pleased to report that our on-time performance for February 2011 was 98.64%. This results in a level 2 payout for eligible employees. During February, we had 14 delays. This was one less delay than the previous month. The STAR bonus will be included in your March 25 paycheck. Putting numbers like that together day in and day out is a huge accomplishment. Thank you for all you do every day.

Expense Reporting and Credit Card Process Update
Procedures for expense reporting and corporate credit card authorized approvers have been updated. The document is available on Management Resources.

Please note the following changes:
• Expense reports or credit card statements are to be approved by the employee's immediate supervisor or other management within their business area. Any exceptions to this must be approved by John Graber.
• Effective March 4, 2011, the mileage rate increases to $.51 per mile.

Business Update - ATSG Transformation Yields Strong Results
ATSG reported financial results for its fourth quarter and year ended December 31, 2010. Net Earnings from continuing operations of $11.9 million is up 4% from the third quarter of 2010 and 15% from the fourth quarter of 2009. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) from continuing operations were $46.4 million in the fourth quarter, up 6% from the third quarter of 2010 and up 3% from the fourth quarter of 2009. For all of 2010, EBITDA was $169.3 million, up 9% from 2009. The full release is available online at atsginc.com.

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  |  March 3, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for March 3, 2011.

Safety
In much of the country, people are looking forward to warmer weather. It has been a tough winter this year – and of course it isn’t over yet – but we’re in that wonderful period, at least in the Midwest, where we have some beautiful warm days interspersed in all the cold and snow. Instead of deicing every operation, in some stations we’re just standing by in case we need it. I need you to remember that it is in times of transition like this where people get hurt. Someone will let their guard down. Don’t. There is still ice out there. We will still see snow across the operation. So don’t lose focus. Stay Safe as things warm up.

We operate on four continents now. That makes world events something to be aware of. Like every other major international airline, we review the local situation in every place we go, and we do that often. We talk to people on the ground, we talk to other carriers, we talk to our union representatives, and we send our security and leadership personnel in to look at things themselves.

We do all we can to make sure our people and our operations are Safe, but nothing we do as a corporation can take the place of what you can do to keep yourself Safe when you’re out in the system. The things you do in Memphis to watch out for yourself and your fellow employees apply in Monterey. There are good neighborhoods and bad ones in both, but it is important for all of us to be more careful overseas. Be aware of your surroundings. Stick to the beaten path. And tell us if you see anything that doesn’t seem right. We’ll check it out right away.

DHL Tails
The four aircraft DHL owns are in our domestic system now. One is operating a second flight to New York City, one is operating a second flight to Miami, and the other two are sitting spare to support a paint line and the CVG hub operation. We expect DHL to detail those tails to more permanent routes in the weeks ahead. We have recalled the crews we need for all those aircraft.

Industry News
In Europe, one of our large Customers, TNT, is moving forward with a major restructuring. For years, TNT has had two major business lines: providing traditional mail service in the Netherlands and operating a large express package business. The marketplace expects TNT to gain approval in May to split itself in two, forming standalone mail and express companies. TNT’s mail business declined slightly last year, generating about $1.6 billion in revenues. Its express business, where we operate, grew by almost a third last year. We’ve flown intra-Europe and transatlantic service for a long time for TNT, and have built an excellent record of reliability in their service. We do not expect their business change to impact our operations for them.

ATSG Annual Results
Tonight after the close of the market, ATSG will release its annual results for 2010. Tomorrow Joe Hete will host a conference call and review the year for investors. You can find the company’s news release on its web site at ATSGinc.com.

Tailwinds
Finally, this week, I want to say farewell to Paul Tremback. Paul flew here for almost twenty years. He lives in Dallas, and has accepted a job flying for Southwest Airlines. Paul was a tireless advocate of Safety in his time here. He played a key role in our ASAP initiative and in the successful fielding of our FOQA program. He brought a firm and seasoned perspective to aviation Safety, and added meaningfully to the Safety of our airline. All the best, Paul.

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 Greene's INFOline  |  February 24, 2011
This is Bob Greene, Manager of Ground Operations & Compliance, with the ABX Air INFOline for February 24, 2011.

For those who don’t know me, I’ve been with ABX Air for nearly 18 years working with our Ground Operations training and auditing functions that entire time. The Ground Operations Department staff consists of four Instructor/Auditors and a Supervisor. The combined ABX experience for the six training/audit staff is more than 120 years, which is in addition to outside air cargo experience for several of us. We also have a staff of 30 highly experienced Professional Loadmasters (8 full-time, and 22 casuals) who fly many of our ABX international charters.

Safety & Compliance
Some of you may be thinking, what exactly is the ABX Ground Operations Department, and what do they do, especially with all of the restructuring of our business?

As a US air carrier, ABX Air is accountable to our employees, the public, our shareholders, and various regulatory agencies for conducting safe and compliant airline operations. A typical airline includes several operational areas - Flight and Aircraft Maintenance are two that immediately come to mind. Another area for which ABX still has responsibility and accountability is our Ground Operation.

The ABX Ground Operation includes two main sub areas: the carriage of cargo and the ground handling of ABX aircraft.

  • The “carriage of cargo” part means that ABX must ensure the preparation and airworthiness of air cargo (both regular freight and dangerous goods), the correct loading and unloading of our aircraft (to ensure that the cargo is properly placed and secured), the calculation of the take-off center of gravity (to ensure the aircraft is balanced and ready to fly), and the completion of cargo and aircraft security procedures.

  • The “aircraft ground handling” part refers to the servicing of our aircraft while they are on the ground. This includes parking the aircraft; positioning and using all of the ground servicing equipment, such as loaders, power units, air starters, tugs, and cargo dollies; and moving the aircraft out of the gate for departure.

Under our new business model, ABX Air no longer directly performs most of these ground operations functions. For the most part, we now have agreements with various cargo forwarders and aircraft ground handling agents to perform these services on our behalf. We have such agreements with some of our largest customers – DHL, TNT, Aeromexpress, SAS, Solar, and JAL, for example. There is an exception in some of our international operations, where we use ABX Professional Loadmasters who fly on-board our aircraft to perform and supervise the ground operation at certain international aircraft ramp locations. Even though others now perform most of our ground operations functions on behalf of ABX, we are still accountable to ensure the safety, compliance, and quality of those contractor operations – and that is where the ABX Ground Operations Department provides service.

The Ground Operations Department develops and publishes FAA- and TSA-approved procedures to guide our contractors in conducting safe and compliant operations for ABX Air. The department provides technical assistance to our contractors, other company departments, and customers. We develop training programs for our approved procedures, and either do the training ourselves or train others to provide our training. Finally, we conduct our own operational safety and compliance audits of ABX and our contractors, as well as assisting outside agencies, such as the FAA, the TSA, the Department of Defense, IATA (IOSA), and our contractors, in completing external audits of ABX Air. During our own audits we make continuous on-site visits of ABX and contractor stations and aircraft ramp locations worldwide to ensure the safety, compliance, and quality of those operations.

As part of our effort to continue to improve our business as it changes and grows, I invite any of you to contact me at bob.greene@abxair.com if you have any observations, suggestions, or concerns that might help us to improve the quality or safety of any aspect of ABX’s Ground Operation.

Our People
I want to take this opportunity to recognize two ABX Ground Operations Department employees, Kyle Murphy and Jerry Heilgeist. They were both recently awarded Letters of Recognition for their significant contributions in developing, training, and rolling-out ground operations processes and procedures for the addition of the first 767-300 to the ABX fleet and for the start-up of the DHL/JAL operation in Japan and China.

That’s all the news for this week. John Graber will be back with next week’s INFOline.


John Graber's INFOline  |  February 17, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for February 17, 2011.

Safety
We have done a great job of taking care of ourselves so far this winter. ABX Air’s Safety performance has been exceptional in both the raw numbers and the rate. But Safety isn’t just something to think about at work. A couple of weeks ago a friend of mine slipped outside his home and broke his hand. There was nothing exotic here; he was getting out of his car and fell. After the surgery, he’s looking forward to several weeks in a cast. Accidents do happen, and we have weeks of winter left in front of us, so watch out for yourself and each other – don’t take anything for granted. Think Safety.

Compliance
In Compliance, last week we faced a rumor that ABX is handling lithium batteries differently than other cargo airlines. That is not true. I mention this in my Compliance section, because there is a lot of bad information out there about how to handle things like lithium batteries. What I want you to know is that there is also a lot of good information out there, and we follow it. Our procedures align with those of every major cargo airline in the United States, and our procedures are designed for Safe flight operations. If things change, we will change our procedures very quickly. If you see something you think is unsafe, make sure we know about it. We will all follow our rules and procedures on the transportation of dangerous goods.

STAR
We flew 98.61 percent on time in January, up two-tenths of a point over December, earning a Level 2 STAR bonus. If you’re eligible, you’ll see your bonus in your February 25 check: $100 if you’re full-time, $50 if you work part-time.

We improved January’s reliability despite a very challenging set of weather systems that absolutely shellacked the nation. Thank you for all you did to help us achieve that performance for our Customers. We had 15 delays in January – two more would have knocked us out of the second tier. Every flight counts.

ATSG on the Road
Joe Hete and Quint Turner, ATSG’s CEO and CFO, are in front of the investment community this week. They’re out telling the ATSG story. For a long time ABX, and ATSG behind it, had a complicated story to tell, one that was clouded by DHL’s uncertainty in the United States. That story is much simpler now, and the market is beginning to understand it.

We’ve worked hard to do the four things we staked out in June of 2008: (1) we’ve lowered our costs and retained DHL’s US business, (2) we’ve diversified our freight airline business, (3) we’ve leased aircraft to other operators, and (4) we’ve grown our non-airline revenue streams. That strategy is working well for ATSG and ABX, and the stock price reflects it. It was $2.80 on January 4, 2010; yesterday it closed at $8.34.

I invite you to see Joe and Quint’s presentation. You can see the slides and listen at the link on ATSG’s website, ATSGinc.com.

DHL in CVG
DHL announced last week that it is expanding its CVG hub. It will spend $22.5 million to add nine new wide-body aircraft gates there. DHL has leased 19 acres from the airport to support that expansion. This is their second phase of investing in CVG. In October they said they were spending $12.5 million to upgrade the auto sort system. CVG handles north of 90 percent of DHL’s US volume.

Industry News
The International Air Transport Association (IATA) reported international cargo traffic up 6.7 percent year-over-year in December; this up from the 5.2 percent growth reported in November. For the year, IATA said international cargo traffic was up 20.6 percent over 2009. Of interest to us, Latin America led the growth, up 29 percent, and the Asia Pacific region reported growth of 24 percent. European markets lagged, growing just 11 percent.

Auf Wiedersehen, Suz
And a final note this week. Suzanne Mueller is leaving ABX this week after seven years as our lawyer. She is moving abroad with her family. When you see her, wish her well. She will be missed.

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.


Jeff Walling's INFOline  |  February 10, 2011
Hello, this is Jeff Walling, Manager of Human Resources, with the ABX Air INFOline update for Thursday, February 10, 2011.

Safety
Ol' Man Winter continues to bring wicked weather to much of the United States. I recently had the opportunity to observe airline ramp operations, and I now have a better appreciation of the efforts our operations people have been going through this winter season. The weather conditions have been difficult at times, and yet we continue to provide the service our customers have hired us to do.

It's more important than ever to make sure you're following your procedures and training during adverse weather. Be especially careful when walking across snow and ice. Slips and falls make up a large number of our accidents this time of year. Ice is especially slippery when there is a thin layer of water on top, which can be difficult to see. Whenever possible hold on to something to help your balance when crossing icy surfaces.

Our People
Moving on to news about Our People, I would like to congratulate Beth Allen in Human Resources who was recently awarded the Silver Wings of Excellence award for community involvement. Thanks to Beth's efforts, the employees of ABX Air adopted 50 children this past Christmas through the Clinton County HO HO Shop. All 50 kids are the children of former ABX Air employees who had lost their jobs. We had 50 "Santa" bags full of gifts for these children. Thanks to everyone who helped make a brighter Christmas for these children.

I also would like to recognize Holly McCammon and Jean Radcliffe, both in the Administration Department, for their efforts with the Christmas project and last October's Breast Cancer Awareness fund drive. Holly and Jean, along with Beth, organized a fundraiser resulting in ABX employees donating over $2,000 to the Foster J. Boyd M.D. Regional Cancer Center here in Wilmington. Both Holly and Jean received Letters of Recognition for their efforts.

Employee Self Service
A quick update about Employee Self Service. Self Service is where you can go to find information about your paycheck stub, make changes to your direct deposit or tax withholding, and see your Paid Time Off use and available balances. You can access Employee Self Service at www.myabx.com. You'll find the link to Self Service in the upper right hand corner.

STAR Payment
And now an update on STAR. I am pleased to report that we achieved 98.61 percent on-time performance for January. This results in the Level 2 payout for eligible employees. In January we had 15 controllable delays. Only two more delays would have knocked us out of the Level 2 payments, demonstrating how important every on-time departure and arrival really is. The STAR payment will be on the February 25 paycheck.

401(k)
Finally, the recently enacted Tax Relief Act of 2010 lowered the employee's share of the Social Security tax rate from 6.2% to 4.2% (up to taxable wage base of $106,800) for 2011. In effect, this has increased everyone's take-home pay. If your budget allows it, you may want to consider contributing this extra cash into the 401(k) plan. In addition to the regular tax deferred contributions, our 401(k) plan offers Roth contributions, and for those age 50 or older (or who will turn 50 this year) an additional "Age 50 Catch up" contribution. For more information about any of these features, visit Fidelity at www.401k.com or call Fidelity Investments at (800) 835-5095.

Well, that's all I have this week. John Graber will be back with next week's update. In the meantime, there are just 39 days until Spring.


John Graber's INFOline  |  February 3, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for February 3, 2011. I hope everyone is well.

Safety
We’ve had a Safe week so far – nothing really unusual there. But our Safe week came when huge storm systems hammered much of our operation, creating dangerous conditions across the nation. We overflew closed airports across the system, cancelled flights, had crewmembers stranded, and worked through many operational changes to deliver the service we could in extremely demanding conditions.

My thanks to all of you who worked Safely through this week. Our results speak for themselves – you adjusted, followed procedure, and respected the conditions you faced. When we could operate, we did, and when you decided we could not Safely run the system, we stopped. That is how large, complex organizations manage Safety. Thank you.

Compliance
In compliance this week, I want to mention two significant events coming up this year. ABX will stand for our third International Air Transport Association Operational Safety Audit – called an IOSA inspection. We are in our fourth year as an IOSA-certified carrier. Every two years a team of independent auditors spends about a week looking at every facet of our operation, and this year they’ll be back for our third round.

The second compliance event we face this year comes from the Department of Defense. Because we fly in the Civil Reserve Air Fleet program, the Air Force sends a team to audit our operations every other year. Like the IOSA process, the Air Force representatives will spend about a week with us.

Both teams will examine every aspect of our operation. They’ll look at record keeping and aircraft maintenance. They’ll fly jumpseat in our aircraft. They’ll watch our training and examine our manuals. I always look forward to these external inspections because they make us a better operator. As good as we are, every organization can get complacent, and a new set of eyes can help us see things differently.

Business Update
Industry reports say there were 1,623 western-built jet freighters in the worldwide fleet at the end of 2010 – up 4% from a year ago. About 50 newer planes that had been parked during the recession are back in the air now – many competing with us for our Customers.

Efficiency and Growth
A base measure of efficiency in our business is how many block hours of aircraft time we can sell with one aircraft, one complement of flight crews, one set of maintenance technicians, and one set of overhead and support personnel. Like the passenger airline that has an empty seat on a flight, we have empty hours in a schedule almost every month, so we’re always looking for ways to fly more with the airplanes, people, and programs we have. Flying more lowers our costs. Lower cost makes us more attractive, bringing us more Customers, and that allows us to grow our charter business.

Miami is a key opportunity for us. We face low-cost competitors there, many of them from South America. To gain efficiencies, lower our costs, and grow our Miami business, we’re experimenting with how we schedule our crews in Miami. We have a crew base there, and for a long time we’ve flown the bulk of our Miami trips with crews based in Miami.

An issue we face in our Miami business is that the schedule changes constantly. In December, for instance, our Customers asked us to change the departure times or routing for every single expansion trip we had scheduled. Some of our Miami business operates like clockwork, but clearly our Customer base there values flexibility. If we are to grow there, we have to find a way to operate both fixed and flexible schedules.

For some time our Flight Operations department has been studying the problem, and we’ve started experimenting with more efficient pilot schedules. We have not gotten this right every time so far, but we will. With our new schedules we’ll blend some Miami flying across our system to operate known Miami trips – those we know won’t move – while creating more reserve – stand-by – pilot capacity in Miami to respond to last-minute Customer changes. Flight Ops believes we can make these changes Safely, and that we can make Miami more efficient. If we’re right, we’ll make ourselves a better competitor in that marketplace.

Another thing we’re doing to gain efficiency comes from our affiliate, Airborne Global Solutions. AGS is helping us from the sales and marketing end by serving as our independent sales agent. AGS is advertising heavily in the air freight marketplace, and generating interest in ABX services around the world. Their focus is to sell more block hours on our aircraft in Europe and Asia. As their leads mature into expansion flying for us, we become more efficient with those aircraft – flying more block hours without increasing our costs.

As we gain internal efficiencies, and as we market our capabilities around the world, we cement our future. And that’s what everyone’s working for.

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


Jan Woolums' INFOline  |  January 27, 2011
Good morning. This is Jan Woolums with the ABX INFOline for Jan. 27, 2011.

Our People
I'd like to start this week by recognizing and congratulating Rex Gunning and Mike Woodford for receiving ABX Silver Wings of Excellence awards.

Rex worked with JAL and JCAB on approval of all the JCAB manuals and flight kits. This isn't something easily done, trying to resolve language and culture barriers. Rex promptly responded to every request with dedication and determination, allowing ABX to met our promised timeframes to receive approvals.

Also Mike Woodford led the Flight Department with outstanding customer service and many long hours on regulatory documents, meeting all customer service goals. Mike's efforts resulted in ABX getting the first 767-300 on the ABX certificate.

Great job, guys. Thank you.

Safety
Beth Allen asked that we pass on the following:

Last Tuesday a friend of hers had a mobile home burn down due to a power strip that was being used in the bedroom. A sock had fallen on the power strip. The fire department determined that the fibers from the sock had worked into one of the unused outlets and sparked the fire that destroyed their home. Luckily no one was injured.

The power strip did not have a surge protector on it. The fire department recommends that if you are using power strips make certain they are not covered or hidden from view. Also replace any power strips that do not surge protectors.

Weather
The weather has been a topic of conversation for most of us for what seems like much longer than the official start date of winter, which was Dec. 21. For most people it’s about the local weather and how it will affect our day. For those of us who support or work in the CVG  hub, its about the weather across the county. Wednesday night's ops started with the news that the airport at JFK was closed due to blizzard conditions. Also BWI (Baltimore) was be 60 minutes late due to the weather. My first thought was how were we going to cover the DHL departures out of CVG in the morning with two fewer aircraft and four of our pilots stuck on the ground at JFK.

With the outstanding coordination and efforts of the contingency group, the Flight Department, crew schedulers, and NDO Alex Kosch on the ground in CVG, the challenge was met. The execution of the plan was absolutely amazing. This type of dedication and determination is why ABX will continue to be successful.

Others supporting the CVG operation are the large number of flight crews. I'd like to thank the ABX flight crews for their efforts in support of DHL's CVG operations. We’ve seen many changes and will continue to see them in the future. Your cooperation and flexibility affords us the ability to expand and be successful. The future of ABX is looking promising, given the changes of last year. 2011 looks no different, and your cooperation, with a long list of others, is not only appreciated but vital for the success of ABX.

Also on the ground in the CVG operation are Tim Pinkerton, Josh Howland, and Eric Taylor. These three are there in the nightly operations to support the safety and compliance of the ABX aircraft by working with DHL management. They are also on call to assist with recovery aircraft or extra sections. As a group they made 20 trips to support DHL outbase -- OJT training on the 767, setup and training on de-ice in Houston -- always trying to ensure safety and compliance on and around the ABX aircraft. Guys, thank you for your efforts nightly.

Give Blood
I would like to complete the call this week by reminding everyone to give blood. January is national blood donor month

Stay warm, be safe, and John Graber will be back next week.


John Graber's INFOline  |  January 20, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for January 20, 2011. I hope everyone is well.

Safety
2010 was an excellent year for us in Safety. As a company we met or exceeded every Safety goal we set for ourselves – thank you all for working every day to make that happen. On a rate adjusted basis, we’ve cut accidents and incidents in ABX Air operations more than 80 percent the last two years.

We can’t rest on our laurels for 2011, so I’m asking for you to do better. Your department leaders will discuss our goals with you, and I’ll count on you to hit the mark this year, just as you did in 2010. We are making a real difference in the Safe operation of our airline, and we have to keep that up going forward.

Compliance
In compliance this week, it is worth noting that we have been recertified by the Japanese Civil Aviation authorities – the JCAB – to continue our operations there. The JCAB approved our return to Japan last fall. Late this year they came back to check our operations again as part of their normal process. Thanks to Line Maintenance leaders Brad Hamlin, Dan Hendershott, John Chiaffitelli and Wes Ballard for all their work in the surveys. Rex Gunning in Flight Operations also played a key role, as he always does in aviation certification issues.

Business Update
We operate two large lines of business at ABX – we fly for the DHL network, and we fly for our ad hoc charter Customer base. You have listened to me talk for some weeks now about the recovery we’re seeing in demand for air freight. This week I want to talk specifically about ad hoc charter.

The change in ad hoc charter demand from a year ago is striking. The number of charter legs we fly is up more than 70 percent in the last 12 months. The geography behind that increase follows almost exactly the global statistics for air cargo growth. Asia, Africa, South America; and between those markets are the places our Customers want to fly today. Compared to those marketplaces, there is virtually no demand for our ad hoc services in the domestic US market.

You’ve probably heard the old saying, “you fish where the fish are.” That’s what we’re doing. To find our fish, we’re projecting our assets and our people thousands of miles from Wilmington, Ohio. To catch those fish, we have to operate at a cost structure that wins business from the significant, home-grown competition we face in these international markets. We compete with well-known local operators like LAN in South America and Korean Airlines in Asia. Startups and smaller carriers dot the globe, too – all of them angling for the same flying we are.

Though some of these carriers have the advantage of experience over us, we are catching up fast. This summer marks the third year since ABX Air first forecast this shift in our business – the third year since we expanded our international operations. We’ve used that time well.

We’ve run 100 percent on time in our Asian operations for weeks. In our South American operations we did a great job of supporting Customers’ demands for expansion flying during the peak holiday season, and across the Atlantic our operational performance has been exceptional.

Our challenge always is to maintain high service levels while at the same time driving efficiency into our business and costs out. That is not easily done when our airplane is sitting right down the road on the CVG ramp, much less when it is thousands of miles away. But we’re finding ways to do it – and we have to find more ways. Remember, that’s what our competitors are doing every day.

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.  


Bob Gray's INFOline  |  January 13, 2011
This is Bob Gray for the January 13, 2011 INFOline.

We have almost completed the first two weeks of the New Year. For those of us in Ohio, the weather has been cold and miserable, and the snowy drives to and from work have made the day seem that much longer that normal. Many of us are leaving from home in the dark, and returning to home in the dark. January can be a particularly depressing time of year for some people as the post holiday blues set in and we face the challenges of the new year. It is particularly important this time of year to make it a point to take a moment or two to laugh. A smile to a coworker, or the sharing of a humorous thought is particularly appreciated during a month when things otherwise look dreary. You are all working hard to keep our company moving forward, and we thank you for that. You deserve a good laugh once in a while!

Stay Alert
During the past few months, we have seen an uptick in the number of incidents occurring on the ramps on which we operate. These incidents are not the result of any actions by ABX Air employees, and appear to be caused by a lack of attention to details and procedures by others. Remember, it is not only important to make sure you are doing the right thing; look out for the other guy. His inattention to detail could impact you if you are unfortunate enough to be in his way.

Badge Reminder
Terry Wilkin reminds us that airport identification display is still a requirement. Your airport access badge must me worn on the outer most layer of clothing, at or above the waist.

Flu Season
Jeff Walling has asked me to pass on the following: The US Centers for Disease Control is reporting increasing H1N1 influenza activity in the United Kingdom (especially England). The flu in England includes some unusually severe cases. Flu activity in the rest of Europe is reported at low levels, except Russia, which reports moderate activity. At this time, all other areas of the world are reporting low levels of flu activity.

With the start of a new flu season, please remember to take precautions. Use proper hand hygiene, cover coughs and sneezes, and if possible, avoid people with flu-like symptoms. The best protection against the flu is vaccination; and it’s not too late to get a flu shot. The flu shot can be effective in as little as two weeks and protects you against the H1N1 virus. For the latest international health information, check the HTH Business website at www.hthbusiness.com

401(k)
John Starkovich has also asked me to pass along that the 401(k) contributions associated with the Defined Contribution plan will be made by the end of January.

That’s all for this INFOline. Stay safe and warm, and look for warmer weather.


John Graber's INFOline  |  January 6, 2011
Good morning, ladies and gentlemen. This is John Graber with the ABX Air INFOline for January 6, 2011. I hope everyone is well.

Safety and Compliance
I have an interesting story about Safety and Compliance this week. We have struggled getting a maintenance procedure right when we change nose tires on our aircraft. The issue is that for most of our fleet, we just change the wheels. But two airplanes have different axles and require washers be installed when you change wheels. It is very difficult to see the washers and inspect the work on the line.

Seeing the potential for a problem, our Quality Assurance organization made the decision to remove from service the two axles that require washers. This month we’ll be flying only one kind of nose wheel axle, and have only one maintenance procedure when we change nose gear wheels.

Simplifying our maintenance process to eliminate error is an example of our systemic Safety program at work. We look at what went wrong, and then we look for the root cause and figure out how we can solve the problem at the lowest level. Dan Hendershott, our Director of Quality Control, and his team solved this problem for us. Thanks a lot, guys.

Business Update
The International Air Transport Association reports worldwide freight traffic up 5.4% in November. But in Latin America freight was up 10.3%. Europe reported a 6.6% increase, Asia 4.1%, and North America a 1.5% increase over November 2009. These are the numbers we want to see, especially when you remember that last November was when we started seeing the first signs of recovery, so those numbers were already rising over previous periods.

2011
By every account I read, 2011 is going to be a better year for us than 2010. Pundits say the world economic recovery is clearly underway, if still weaker and slower than all of us would like. Freight demand, as I just told you, is still rising, and we’re seeing that growth in our markets. The recovery, slow as it moves, is moving fast enough to boost oil prices, and as oil prices increase, so does the market’s interest in our efficient 767s. We are well positioned to take advantage of the market’s demand to move more freight by air, and to take advantage of our Customers’ need for planes like the 767 that can move that freight as cheaply as possible. We think 2011 will be a good year for ABX Air.

Competition
Having said that, increasing demand always creates increasing competition, and that is true today. There is a cautionary tale here for all of us.

As demand for air freight capacity increases, existing and new competitors are fighting hard to be better and more efficient than we are. Our job is to win that fight. We have to come to market with excellent service at good prices, and the only way we can do that is to make the best, most efficient operational decisions every flight, every day. If you have the ability to help us save money, please do it. Come to work ready to do your best, to help us do our best. Give yourself enough time to follow procedure – that avoids delay. Use things up, restock excess material. Please help us find every efficiency we can. You can bet that’s what our competitors are doing.

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.
 


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