INFOline 2012 Archive
To access the latest ABX Air INFOline (updated twice a month), call (937) 366-4636 or click here. Scripts are posted here within a day or two of each new recording.


December 20, 2012 - Bob Gray August 16, 2012 - John Starkovich April 12, 2012 - Terry Scherz
December 6, 2012 - John Starkovich August 2, 2012 - Bob Greene March 29, 2012 - John Starkovich
November 21, 2012 - Terry Scherz July 19, 2012 - John Starkovich March 15, 2012 - Eric Plas
November 8, 2012 - John Starkovich July 5, 2012 - Jeff Walling March 1, 2012 - Steve Janasov
October 25, 2012 - Eric Plas June 21, 2012 - John Starkovich February 16, 2012 - John Starkovich
October 11, 2012 - John Starkovich June 7, 2012 - Jan Woolums February 2, 2012 - John Starkovich
September 27, 2012 - Steve Janasov May 24, 2012 - John Starkovich January 19, 2012 - Tammy Voss
September 13, 2012 - John Starkovich May 10, 2012 - Bob Gray January 5, 2012 - Jeff Walling
August 30, 2012 - Tammy Voss April 26, 2012 - John Starkovich Older archives: 2011 - 2010 - 2009 - 2008

Bob Gray's INFOline  | December 20, 2012

This is Bob Gray with the December 20, 2012 INFOline.

One of the members of the ABX family, whose job has been to help keep this a safe place to work, is retiring this month. Environmental Health and Safety Manager Michael Lueck is retiring after 21 and a half years with ABX. Mike has been active in developing and maintaining the safety environment throughout his career here at ABX, including the outbased hubs and postal operations. Prior to coming to ABX, Mike taught High School Science, and worked in the safety department for an insurance company. Mike plans on enjoying his retirement with his wife Elizabeth with frequent trips to North Carolina to visit the grandchildren, playing golf, and working in his woodworking shop. We wish Mike and his family a happy and healthy retirement. Don Florea will be taking over the safety and environmental functions when Mike leaves.

December company anniversaries include 30 years for Lead Line Maintenance Representative (BWI) Phillip Spencer, 20 years for Maintenance Controller Patrick Ederer, and 15 years for Lead Line Maintenance Representative (SFO) Corea Humberto.

DHL advised us this week that ABX has been selected to begin operating three additional 767-200 aircraft in the DHL domestic market starting at the end of this month. These flights will fly from CVG to PHL, CVG-STL-MCI, and CVG-BNA-MEM. We are looking forward to providing DHL with the same excellent level of service on these new runs that they have come to expect from ABX.

We will be relocating our Flight Crew quarters at the DHL hub in CVG during the evening of Thursday, January 3, 2013. The new facility is located in the last building on the left off of Wendle Ford road. All vehicle parking and hotel van drop off is available directly in front of the new DHL building. The only significant change is that the new building and all the amenities available will be shared by all companies that operate within the DHL CVG Hub.

The Charter department has asked that I pass along their thanks to Kate Valez, our MIA Mechanics, Professional Loadmasters, and our Pilots that have been supporting the MIA charter operation this month. So far we have run a total of twenty extra flights for our customer out of MIA, and have been able to meet the additional demand created by the holiday season. We all thank you, especially Eric Plas and Catherine Rettich, who have participated to make this Christmas season a success in our MIA operation.

The Christmas and New Year's holidays will be coming up over the next two weeks. For those of you that will be traveling to be with family and friends, have a safe trip, and to all of you, may your holidays be enjoyable.


John Starkovich's INFOline  | December 6, 2012

Good afternoon. This is John Starkovich with the ABX INFOline for December 6, 2012.

Safety
The Flight Crew Safety Bulletins (FCSBs) are now being posted on the ABX FlightWeb. This is another channel to communicate safety-related information to our flight crews. Crewmembers will also get the information via the same methods of distribution as is used for Flight Crew letters. Also, the Winter 2012 edition of SafetyLine is available on the Flight Website. This publication is a joint effort between ABX and IBT Local 1224.

ABX is adopting the use of reflective vests for all employees working in areas that require reflective clothing. This includes our flight crewmembers. The reflective belts that used to be allowed are to be discontinued, and the vests will be the only acceptable reflective clothing. More information will follow regarding this directive.

Compliance
Our FAA Certificate Management Team notified ABX that the Air Carrier Evaluation Process (ACEP) will be here in the first quarter of 2013. The ACEP is used by the Flight Standards National Field Office (AFS-900) to evaluate Part 121 air carriers using national type standards. A national or regional team will be verifying ABX compliance with applicable regulations; identifying hazards and assessing risks; and evaluating our operations as a whole.

2013 is shaping up as a very busy time for these types of visits as we also will have an IOSA audit and a DOD audit.

Company News
Our on-time service performance for DHL for the month of November, subject to verification, was 99.32%. For the month of December, to date, we are at 99.40% and for the quarter so far we are at 99.19% again, all subject to verification.

The Center for Disease Control (CDC) is reporting a substantial increase in flu activity earlier in the season from past years, as was mentioned in a USA Today article. It is not too late to get your flu shot. Vaccination remains the best method to protect you and your family from the flu, provided that you are not allergic or have had reactions to flu shots. Our insurance covers the cost of a flu shot at participating pharmacies (Walgreens, Rite Aid, CVS, Target Pharmacy, and others). Please present your current UHC card to make certain that the pharmacy has an arrangement with the UHC program. More information about the flu and vaccine is available at www.flu.gov.

The formal portion of the Fall Charity Drive has concluded. I would like to thank everyone for their generosity in making it a success. The final numbers are being tabulated, and we will report what the totals are, once the process is complete. There is still time to submit a pledge and put in for automatic deduction. Please go to myabx.com for quick links to the form and additional information.

Other News & Information
In a November 29 Wall Street Journal article, reporter Doug Cameron observed that global air cargo demand continued to slide in October. One reason given for the decrease is described as “a structural change in the market with more goods switching to ocean shipping, notably on routes between Asia and Europe.” Global freight traffic was down 3.5% in October compared with a year ago and 2.2% lower than in September.

The UPS effort to take over the Dutch company TNT Express continues to be in the news with announcements of UPS plans to sell assets and open up their air operations in an effort to satisfy European anti-trust concerns. TNT has conditionally agreed to sell its airline operations to Dublin-based ASL Aviation Group because, as an American company, UPS cannot own TNT airline operations under European law. The European Commission warned UPS about the company's high market share after the combination and said it would seek concessions before it could approve the deal. According to the article in Reuters by Gilbert Kreijer, TNT Express has an 18% share in Europe and UPS currently has a 10% share.

DHL Global Forwarding opened an office in Tripoli to provide international freight, domestic, and cross-border trucking services. Claudio Sandello, CEO of Global Forwarding, said in a DHL news release that they see significant potential in the triangle between Africa, the Middle East, and Asia. While this is their first office in Libya, DHL has had a presence in the country through its Express division since 1989.

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

Terry Scherz' INFOline  | November 21, 2012
Good afternoon, everyone. This is Terry Scherz with the ABX INFOline for November 21, 2012.

Safety and Compliance
I just received this week the ABX Air Safety and Environmental report for the month of October. What is very noteworthy: ABX Air employees have not experienced an on-the-job injury since March of this year. A very impressive run of seven months straight. Your diligence towards being safe is paying off and we thank you.

Don Florea was recently hired earlier this month as our Safety and Environmental Specialist. Some of you may know Don as he is a previous ABX Air employee of over 20 years. He worked in our Ground, Air Park Services and Environmental Departments. Please join me in welcoming Don to our team.

Company News
We recently started flying scheduled service from Mexico City to Cincinnati for DHL. This is the second aircraft we fly to Mexico for DHL. The other operates out of Monterrey.

Speaking of Mexico, one of our longest tenured charter customers, Aeromex, replaced a 767-200 we have been flying for them with one of our larger 767-300's.

SAS, another one of our charter customers, recently added one of our 767-300's to compliment two of our 200's we already fly for them out of MIA.

And we recently signed a contract to operate three of our aircraft during the peak holiday season. One of these aircraft will be flying to Honolulu. In order to operate this Pacific ETOPS route we recently conducted a tabletop exercise for the FAA to demonstrate our ability to safely perform this mission. Authorization was granted and we are ready to go. Great job by the Flight and Maintenance Departments.

Last month Eric Plas reported AMES’ new hangar project was moving along. This week the Phase II Environmental Study involving core samples at the construction site will be completed. Results should be back within a couple weeks, and they are hopeful of a groundbreaking before the end of the year. In case you are wondering, the last hangar construction at ILN (Hangar 1005) was completed approximately 20 years ago.

AMES is in the process of completing a rare and remarkable feat on one of our high cycle 767’s. They have completely removed the entire tail and aft pressure bulkhead on 795AX. They are installing a new bulkhead provided by Boeing. The entire process takes approximately three weeks and is regulatory driven for very high cycle aircraft. This has been accomplished only one other time, and it was by Boeing, the manufacturer. AMES is the first MRO to accomplish this task and certainly will be well positioned to accomplish this complicated task for 767 operators in the future.

In conjunction with ongoing consolidation and cost-saving efforts, ATI will be relocating some of their workforce to ILN beginning next month. ATI’s Operational Control Center (OCC) will occupy offices on the first floor of the Administration Building. Additional staff may be moved here later; however, ATI’s headquarters will remain in Little Rock for the foreseeable future. Be sure to welcome the ATI folks when you see them.

Employee News
November service anniversaries are Captains J.V. Plett and Ken Houghtaling with 25 years, and First Officer Pete Bickler with 15 years.

Please join me in welcoming Kathy Johnson, our new Human Resources Generalist. She has spent the majority of her career in the Human Resources field, and is located in the upstairs Administration Building.

Our 2012 Charity Drive will be wrapping up in a little over a week. Again this year, employee involvement has been great, and taking a look at a couple dozen gift baskets prove again we have a very talented and creative group of employees. We have not yet reached our goal of $50,000 but we are about 90% there. If you have not yet given, even if it is a dollar a paycheck, please consider as our charities are very worthy and in need of our help.

This is all I have for this week’s INFOline. Thank you for all your efforts and have a safe and happy Thanksgiving.


John Starkovich's INFOline  | November 8, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for November 8, 2012.

Safety
You have all heard of the Aviation Safety Action Program. ASAP is a process/program that allows for the confidential reporting of mistakes that are made to allow others to avoid similar mistakes and to prevent aircraft incidents and accidents. Recently a new link was added to the website called the ASAP Status Scoreboard. It allows access to all of the pilots to read the entire de-identified description and suggested ways to prevent similar events.

Compliance
The FAA EM FDSO Manager Jay Wilkin and a number of his staff visited ABX on November 6, 2012. Joe Hete and I met with them, as did Terry Scherz and Bob Gray in a subsequent meeting. This is an annual meeting in which the parties meet to see how things are running and to discuss immediate concerns. The visit concluded with no significant problems at issue.

Company News
Our on-time service performance for DHL for the month of October, subject to verification, was 99.04%. For November performance is at 100% and for the quarter, we are at 99.22%, again, all subject to verification.

Open Enrollment for health care coverage for non-pilots began on November 1, 2012. You should have received an email directing you to Self Service. There will be no mailings to your home as in past years, so please respond by following the directions in the email and Self Service should you desire to change any of your existing elections from last year. Flight crewmember enrollment is expected to start shortly.

With the East Coast being battered by Hurricane Sandy and northeasters, operations here at ABX have had to do a lot of adjusting in a very difficult environment. I want to thank the Global Flight Source employees for the services and performance that it provided to us during this period as well as all of the ABX folks. Contingency, Maintenance Control, Crew Scheduling, Charter Services, maintenance and crewmembers stood out in their performance and ability to adapt to the changing circumstances. My appreciation goes out for all that everyone did for ABX and our customers. To that end, ABX has also performed two charters for Air Charter Services from Houston to JFK carrying equipment to aid in the relief to that area.

ATSG released its earnings for the 3rd Quarter. Total revenues were down $41.7 million from 2011 3rd Quarter results and $110.8 million for the nine months of 2012 versus 2011. Adjusted pre-tax earnings from continuing operations were down $3.7 million from 3rd Quarter last year and down $6.1 million for the year so far as compared to last year. Adjusted pretax earnings were $18.5 million for the quarter and almost $47 million for the first nine months of 2012.

The Fall Charity Drive continues with theAMES Chili cook-off on Friday; the bake sales at ABX Air; and the assembling of the baskets from various departments. ABX is looking to increase the total number of employees participating in the Fall Charity Drive and the total amount contributed to the charities. You will be hearing more via email and postings around the building. As employees of ABX, we have much to be thankful for. There are many that are less fortunate than we are, and it would be great if you could see your way to contributing $1 per pay period or more to thedDrive. Improving on your generosity from last year would also be appreciated. Many thanks.

Other News & Information
The November edition of Cargo Facts Update reported that DHL has taken delivery from Boeing of two 767-300 freighters with one more on order that is yet to be delivered. It also reported that Deutsche Post-DHL reported a 0.8% decline in 3rd quarter net profit from the previous year and total revenue rose 5.7%. Operating profit (EBIT) was up 7% with Express revenue up 9% and operating profit up 6.9%. In a press release announcing its earnings guidance, Frank Appel, the CEO of Deutsche Post DHL was quoted: “With our strong market position in the international express and the German parcel business still paying off, we have delivered a solid set of results in the third quarter. At the same time it is clear that we cannot afford to rest on our laurels given the volatile economic environment.”

On Wednesday, November 14, the Wilmington-Clinton County Community Blood Drive will be at the Wilmington Elks Club on Rombach Ave. from Noon to 6:30 p.m. If interested, you can register at www.donortime.com and enter sponsor code 41 or call 800-388-4483 (Give). The Community Blood Center is an extremely worthwhile organization, and the donation of blood is one of the most precious gifts that we can give.

Sunday, November 11, 2012 is Veteran’s Day. Take a moment during the day to remember all of our veterans, living and dead, for their service to our country. On behalf of everyone at ABX, thank you to our ABX colleagues who served and to all veterans.

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


Eric Plas' INFOline  | October 25, 2012
Good afternoon. This is Eric Plas with the ABX INFOline for October 25, 2012.

Safety
This past Tuesday members of our Flight Operations Quality Assurance (FOQA) Monitoring Team met with representatives from Flight Data Services. Flight Data Services (FDS) is headquartered in Goodyear, Arizona, and they provide data validation and analysis for our FOQA program. FDS has selected ABX Air to be their first U.S. customer to be outfitted with their upgraded POLARIS software. This upgrade will increase our ability to conduct statistical analysis, provide improved benchmarking capability, and allow us to compare ourselves to other operators. The target date for the POLARIS upgrade is January, 2013. The overall goal of the FOQA program is to improve flight safety through the analysis of automated data recorded during flight operations and this upgrade will enhance that capability.

Compliance
A Civil Reserve Air Fleet (CRAF) audit team was in Wilmington (ILN) this past Tuesday to perform a one-day audit at ABX to review our mobility readiness, security procedures and controls. It is my pleasure to report that the audit was completed with no adverse findings by the audit team. CRAF auditors were very complimentary of the professionalism and quality of the work at ABX. A special thanks to Terry Wilkin who serves as our Facility Security Officer (FSO) in the CRAF program.

Company News
Our on-time service performance for DHL for the month of October so far is 99.43 percent going into the last week, an excellent start for the quarter. Let's keep it up and remain focused on providing our customer with top notch service!

Our annual Fall Charity Drive is coming up in November. The drive gives everyone the chance to support several worthy charities through convenient payroll deduction or one-time donation. ABX, AMES, and LGSTX are already planning several fundraising events during the month, such as the popular basket raffle; a cook-out on Friday, Nov. 2; casual Wednesdays; and other events.

Benefits open enrollment is coming up beginning November 1 through November 30. Look for information in the mail after November 1.

On the company business front, charter customer Aeromex recently upgraded from the 767-200 to the -300. The aircraft is performing well flying the same routes as the -200. The customer is enjoying the extra capacity and plans to explore new routes and business opportunities that the -300 can provide.

Stand-alone ad hoc charters have picked up in the recent months. We recently completed a series of eight trips from Basil, Switzerland to Memphis for charter broker Chapmann Freeborn. The customer has been very happy with the service, and that's a good thing. Good service brings them back. Thanks to all that make it happen.

Business News and Information
Wilmington City Council recently passed a resolution authorizing Tax Incremental Financing (TIF) for the new hangar at ILN, paving the way for construction and eventual operation of that hangar by AMES. Groundbreaking is expected to occur in a few weeks, and AMES anticipates it will take about a year to complete the new building.

In the Far East a dispute between China and Japan is taking its toll. As recently reported in the Wall Street Journal, tensions between China and Japan have heated up over a group of uninhabited islands. Last month, protests turned violent when Tokyo nationalized one of the islands. As a result Japan's September export to China fell 14.1 percent from a year earlier. In China economic growth slowed to its lowest level since the global crisis.

In closing, a reminder that November 6 is Election Day. Please take the time and exercise your right to vote.

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  | October 11, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for October 11, 2012.

Safety
The Third Edition of the Flight Operational Quality Assurance Program (FOQA) Connection Newsletter is currently available. The program has a team of members that make up a FOQA Monitoring Team with representatives from Safety, Engineering, Flight Standards, Management, and the APA/pilot group. They meet monthly to review de-identified FOQA data taken from the monitored aircraft and then communicate the results of that analysis with the pilots and other stakeholders. This edition of the FOQA Connection Newsletter discusses approaches, vertical speed, and flap over-speed as a flight crew prepared for landing. It will be issued as a Flight Crew Letter and then also as an APA flash-mail as the parties work together to improve pilot performance and increase safety margins. Please contact ABX Safety (937-366-3322), the Flight Department, or an APA Safety Committee member for additional information on the program.

Compliance
A while ago, ABX was contacted by the Stansted, England airport authorities regarding noise issues. We are pleased to advise that the report from September reflects that with 20 departures from both runways, ABX achieved 100% compliance. Thanks to all the flight crewmembers and everyone else that worked on this effort to fly safely and in a manner that allows for meeting those noise restrictions. This is a win for all of us.

Being compliant often times takes a team effort and the M-1A Aircraft Log report is one of those areas. The entries made on the report are used by Flight, Maintenance, Environmental, Accounting, and others for a variety of purposes. It is critical that the entries be complete, accurate, and legible so that each group has the data and information to do their jobs. The information and the M-1A’s is just one example where the jobs of many intersect at a single point. It is a reminder that we depend on one another to get the job done and to achieve safe operations.

Company News
Our on-time service performance for DHL for the month of October to date, subject to verification, is 99.41%. For the month of September, we finished at 98.97% and DHL thanked us for that performance level.

While the numbers for the third quarter financial performance are not projected to be complete until early November, we do have the on-time performance component. For the 3rd quarter, you achieved a 98.84% on-time performance for DHL service. This places us in the second tier for purposes of the service performance level. Congratulations to everyone for this result.

Our sister company, LGSTX Distribution Services, Inc., announced that it has renewed its contracts with the US Postal Service (USPS) for an additional two years. LGSTX manages facilities in Memphis, Indianapolis, and Dallas-Fort Worth for the USPS, and the renewed contracts are expected to produce revenues of approximately $24 milion. My congratulations to Don, Daryl, Thomas, and all of the rest of Gary Stover’s troops for the excellent work that they do for the USPS business and for securing the extension.

The Fall Charity is in its early stages of being ramped up for 2012. Last year’s success in terms of money raised/contributed, and the fun that everyone had, will be tough to match. I look forward to this year’s effort. ABX employees have always contributed generously to help those less fortunate than we are, and you will undoubtedly do so again this year.

DHL continues to make progress on its expansion in CVG. Restriping and realignment of the ramp started last week with the South Ramp 1-15 already done. Taxiway Sierra being changed to allow for moving the main ramp spots closer to the sort buildings is one of the major improvements. Steve Elkins, the DHL Director in charge of airport affairs, indicated that the North Ramp will be changing too, and we will receive notifications and updates as things progress. Efforts continue to complete the new sort buildings as soon as mid-November and the flight crew/ramp personnel facility as soon as mid-December.

Other News & Information
An article in Air Transport World by Aaron Karp reported that Fedex is revamping its Express division cost structure through a combination of cost reductions, efficiency improvements (such as improved information technology), and service repositioning. CEO Fred Smith said “the key is striking the right balance between volume growth and yield management.” However, he added that with slow economic growth, cost reductions also are essential to achieve their financial goals. The workforce is to be reduced by “several thousand” via a voluntary buy-out program. Fedex has a goal to improve profitability by $1.7 billion by 2016 after coming off a 1% year-over-year decline for its 1st quarter ending August 31st for the 2012 fiscal year.

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  | September 27, 2012
Good afternoon. This is Steve Janasov with the ABX INFOline for September 27, 2012.

Safety
I had the opportunity earlier this month--along with Captain Larry Cavazos, one of our Safety Committee members--to attend the FAA-sponsored Aviation Safety Infoshare in Atlanta, Georgia. This three-day safety event was filled with presentations updating the airline industry's posture in many topics, including Threat and Error Management, Aviation Safety Action Program Event Review Committee procedures, Flight Operations Quality Assurance data usage, Fatigue Risk Management, Safety Management System implementation, and a host of other pertinent airline safety information. Networking breakout sessions were held for Flight Operations, Maintenance, Cabin, and Dispatch with presentations from various sized carriers within the industry.

One-on-one training was offered for WBAT and ASIAS, and I participated in ASIAS receiving a system overview from Dr. Michele Harper from MITRE. Most everyone is familiar with the Web Based Application Tool for the submission of ASAP Reports, Fatigue Events, and Captain’s Irregularity Reports. ASIAS is the Aviation Safety Information Analysis and Sharing System sponsored by MITRE (MIT Research). At the suggestion of the ABX/APA Safety Committee, ABX recently joined the ASIAS program as an ASAP contributor and will soon have access to aggregate deidentified safety information from both ASAP and FOQA data from the forty-four ASIAS contributing airlines. The ASIAS system enables users to perform integrated queries across multiple databases, search an extensive warehouse of safety data, and display pertinent elements in an array of useful formats. Our new Safety Analyst, Dean Weaver, is the designated ABX point of contact for ASIAS information and data.

In addition to spearheading our ASIAS project, Dean is designated as a WBAT administrator. One of his most recent projects involves working with Universal Training Resource Service, the WBAT system support folks, to establish a mobile version of abxairsafety.com. The mobile version will allow submission of ASAP, Captain’s Irregularity Reports, and Fatigue Events on iPhones and other Smartphone web browsers and tablets. We will be providing additional information on the capability in the near future.

Compliance
ABX recently completed an audit conducted by two Senior Analysts from the U.S. Department of Transportation, Office of Inspector General. The focus of this audit was our interface with the FAA’s Voluntary Disclosure Reporting Program, also known as VDRP. Prior to beginning the audit here, they completed an audit of our FAA Certificate Management Organization in Detroit. The VDRP is one of several voluntary safety programs put into place by FAA policy. This program allows airlines to submit FAR violations that are self-discovered by company employees before the violation is found by the FAA. The advantage of this process is that by voluntarily self disclosing there are no penalties placed against the airline. The auditors worked with compliance managers in Flight and Maintenance and tracked our interface with both senior members of management and the FAA throughout the process. The auditors will be visiting a number of other airlines and will ultimately make a report to Congress concerning the VDRP process and their findings.

Company News
For folks at ILN flu shots are scheduled for Oct. 2 from 1 to 5 p.m. There’s no cost for those covered by company insurance age 14 and up. Our outbased employees can acquire a vaccine at participating pharmacies that take UHC insurance. Our pilot group will need to check with their APA health insurance contacts for locations and associated costs.

Business & Industry News
In an article contained in the September edition of Air Cargo World, it was announced that DHL will be opening a new regional hub facility in Korea. The hub will reduce transit times and costs within the intra-Asian market. The Korean forwarding hub follows the inauguration of a new DHL express hub in Shanghai in July and a new distribution center in Hong Kong in May. The air freight expansion is designed to upgrade service, especially for the fashion industry, and adds to DHL’s stronghold in the Asian market.

Bloomberg reports that the U.S. airline industry is urging the Obama administration to resolve the conflict over the European Union's emissions plan because the industry believes the plan violates international law and amounts to a $3.1 billion tax on airlines and their customers. According to Airlines for America, the recently passed Senate bill banning U.S. airlines from complying with the EU plan provides President Barack Obama with one more tool to limit the effect of the EU plan.

That’s all for this week's INFOline. Thanks for all your work in keeping our company safe and successful.


John Starkovich's INFOline  | September 13, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for September 13, 2012.

Safety
Dean Weaver has been appointed to the newly established position of Safety Analyst and Compliance Coordinator working for our Director of Safety Steve Janasov. Dean comes to us from Comair where he was a pilot and an active participant in the safety programs there, including FOQA, ASAP, and the Safety Committee. Please take time to welcome him to ABX.

For our employees that travel or live abroad, the State Department encourages US citizens to enroll in the Smart Traveler Enrollment Program (STEP). Enrolling in STEP will allow you to be kept up to date with important safety and security announcements. It also makes it easier for the Embassy to contact you in an emergency situation. Keeping the information current, especially your email and current telephone number, is critical. US citizens are strongly encouraged to maintain a high level of vigilance, be aware of local events, and take appropriate steps for their personal security. Additional information is available at the State Department web site under the tab “A Safe Trip Abroad”.


Compliance
A seven-person Japan Air Lines (JAL) audit team was in Wilmington (ILN) this past Tuesday to perform a one-day audit at ABX to review manuals, procedures, and controls for a number of areas including Safety, cockpit crews, training, facilities, flight dispatch, and flight planning.

It is my pleasure to report that the audit was completed with no adverse findings by the audit team, and JAL auditors were very complimentary of the professionalism and quality of the work by the managers at ABX. While the second part of the audit involving Ground Handling is yet to be done, my congratulations and thanks to all ABX employees for this result, as it is your hard work that makes these types of audits a success. It is an honor and privilege to be blessed with a top notch group of department execs, managers, and employees. Please kindly accept my sincere thanks and appreciation for all of you and the job that you do for this organization.

Company News
Our on-time service performance for DHL for the month of August, subject to verification, was 99.21 percent. For the month of September to date, we are at 97.99 percent, and for the quarter we are at 98.66 percent, again all subject to verification.

The deadline for completing the Code of Conduct review and test is the close of business tomorrow, September 14. If you have not already done so, please kindly complete it by then. For references and links, please refer to ICOM 12-77 and ICOM 12-92. Your prompt attention to this important matter is required.

On Tuesday, October 2, 2012, from 1 to 5 p.m., flu shots will be available to employees and dependents age 14 and over who are covered by ABX insurance. The flu shots are free and will be administered in the main floor Administration Building conference room located behind the main lobby. If you are unable to attend or if you are an out-based employee, you can go to any pharmacy (e.g. Walgreens, CVS, Rite Aid, Target, Wal-Mart, Kroger) that offers the flu shot and accepts UnitedHealthcare (UHC) insurance. Please make certain that you ask if they accept UHC insurance before getting the shot. Further details are available on myabx.com.

As many of you know, ABX Chief Pilot Joe Ezell is retiring. The new Chief Pilot is Greg Bienert. Greg left ABX during the downsizing and went to work for Korean Airlines. He is back at ABX already, and we look forward to capitalizing on Greg’s previous experience in ABX Flight Standards and in Flight Management. Please welcome Greg back when you get a chance.

We announced two well-earned and deserved promotions at ABX earlier in the week. Eric Plas was promoted to Director or Business Development, and Jeff Walling was promoted to Director of Human Resources. Eric started out on the ramp for Midwest Air Charter and has been here for 38 years. Jeff has been with ABX since 1989 and holds an undergrad degree in business and a master's degree in HR management. Please join me in congratulating both of them.

An additional reminder to everyone participating in the Fitbit program. You need to average 5,500 steps a day. This is the same as last quarter except there is no free week, and the there is one extra day in this quarter versus last month. So the total steps needed for the quarter is a minimum of 506,000 steps. You can see your current totals by going to www.fitbit.com and clicking on the YEAR report to add up your total steps for July, August, and September to see how you are doing.

Other News & Information
The September 7 edition of “Cargo Facts Update” reported that UPS extended its offer period to buy TNT Express from August 31 to November 9. This was done after the European Commission reviewing the matter expanded its review to a Phase II level, which requires more time. UPS also indicated that it now expects the transaction to close "in early 2013" rather than prior to the close of 2012. UPS further indicated that it "would seek a further extension of the offer period, if the current offer period lapses without the condition on competition clearance having been fulfilled." Stay tuned!

One of our current customers is Japan Air Lines (JAL). It recently reported that it more than doubled its fiscal first quarter net income to $343.5 million over the same period, April 1 to June 30, of last year. Its revenue increased 12.5 percent against an operating expense increase of 7.4 percent. Our congratulations to JAL for its excellent results for this period.

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

 

Tammy Voss' INFOline  | August 30, 2012
Hello, this is Tammy Voss, with the ABX Air INFOline for August 30, 2012. I hope everyone is doing well.

Safety & Compliance
The OHIO Environmental Protection Agency (EPA) was at ILN to review the records for our air permits concerning painting operations. The EPA reviewed the monthly air reports and was very pleased with their findings. This was an exceptional team effort. Brian Laycock, Steve Janasov, Mike Lueck, and the AMES team did an outstanding job.

A few weeks ago, ATSG issued an ICOM concerning the completion of the Code of Conduct training. As a corporation, we are committed to ensuring compliance by all employees with the Code of Conduct for Conducting Business. In accordance with the Code, all ATSG Company non-bargaining employees must complete mandatory training on the Code no later than Friday, September 14, 2012. Employees can access the training online via the Adobe Connect server at https://abxtrain.abxair.com/atsgcct/.

Employee Milestones
We have a number of anniversaries to celebrate this month. Line Maintenance Representative Frenche Raymon, First Officer Phil Zatler, and First Officer Steve Hildebrant are celebrating 15 years with ABX. Congratulations!

Holly McCammon was recently presented a Letter of Recognition for her service in Safety and Compliance. Holly was a key player in the transition of ABX to our new business model and our improved safety margins. Please join me in congratulating Holly and thanking her for her stellar service to ABX.

Performance
Our on-time performance for July was 98.32%. We encountered some very challenging issues during the month. MTD for August 2012, our on-time performance is 99.23%. With just a few days left in the month, we need to remain focused on performance.

Fitness Center
The Fitness Center at the Wilmington Air Park is now under new management. The previous manager Melanie Gall sold the business to new owner Amy Zimmerman, effective August 15. The gym now sports a new name, Vital Fitness. The hours and rates will stay the same, and a full schedule of aerobic classes begins Tuesday, Sept. 4. For more information about hours, classes, and membership, contact Amy Zimmerman at 937-366-2539 or amy@vitalohio.com.

Clinton County Port Authority
Earlier this month, several community leaders met with the President of the Wilmington City Council to quickly deal with the steps that need to be completed to conclude a property tax exemption agreement for a new Wilmington Air Park hangar. The new facility is forecasted to create 259 new jobs. The Wilmington City Council is reviewing the documentation now and updates will be forthcoming.

Labor Day
Monday is Labor Day. Labor Day is not only a day off from work. It is a national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country. Thank you for all of your hard work. Have a safe and enjoyable holiday.

That is all the news we have for this week. Thank you for your time and all that you do for our Company. John Starkovich will be back with an update to the INFOline on September 13.


John Starkovich's INFOline  |  August 16, 2012
Good afternoon, folks. This is John Starkovich with the INFOline for August 16, 2012.

Safety
ABX is pleased to announce that it has added a Safety Analyst / Compliance Coordinator position to the Safety Department. This position has been posted and filled, and the incumbent will begin work in early September. We’ll be providing more information concerning his background, role at ABX, and contact information in the near future.

You recently received an electronic edition of DHL Safety Digest, the safety magazine for DHL airlines and their contract operators. The Safety Digest is designed to share information between the widely differing operations within the DHL global network. The safety representatives of the participating airlines have made a commitment to share safety related information and experiences and each has contributed articles included in this publication, including ABX Air. Please enjoy reading this important safety publication.

Compliance
The executive staff and compliance managers completed their Level 1 Safety Management System training in June. This training culminated in the participants completing a Preliminary Gap Analysis to determine what additional safety enhancements are needed to achieve full SMS compliance. We are presently working on a Detailed Gap Analysis that looks at our picture in much greater detail, starting with our Safety and Security Policy. We have submitted an updated Safety and Security Policy to our FAA Certificate Management Team in East Michigan to certify as SMS compliant. The updated policy has the same flavor and commitment to safety as the present, but is expanded to include a commitment to the components of SMS.

Company News
Our on-time performance for DHL for the quarter to date, subject to verification is 98.67%. For the month of August to date, we are at 99.41%.

On August 14, 2012, ABX began service for DHL into Queretaro (QRO), Mexico via Guadalajara (GDL). This additional city was added to an existing route. Congratulations to everyone involved as the addition went smoothly. DHL thanked us for the effort and provided a picture of the airplane on its arrival at QRO.

We also would like to take the opportunity to congratulate our sister company, ATI. It was announced that ATI was awarded a two-year contract for the US military for “combi” flying as the sole source provider starting in the 4th quarter. A combi is a combination freighter and passenger configuration that used to be a DC-8 aircraft and ATSG has turned to Boeing 757 conversions to provide the service.

As part of the wellness effort here at ABX, a Fitbit pedometer was made available to employees to track the steps that they take and distance in a given day. A goal of 5,500 steps per day on average was set with a sizeable 17% discount on an employee’s health care contribution tied to achieving it. Eighty-seven percent of the employees using the Fitbit met their second quarter goal with an average step count of 8,390 steps per day. Total step count for all employees to date has been approx. 186 million steps or 93,151 miles. So if you are currently enrolled, please keep up the effort. If you are not, you should be, most importantly for your own health but also for the money that it can save you.

Other News
Last weekend, DHL held an employee appreciation day on Saturday. As part of the festivities it had three 767 aircraft on display and allowed employees and their families to tour them and ask questions. ABX and AMES had pilots and Maintenance representatives present at the event to help out. Travis Cobb from DHL contacted us after the event to thank our employees for the job that they did. He shared an email from an aunt of a 5-year-old boy that was at the event. He got to sit in the seat and ask questions about the airplane and said “this was the greatest day of my life.” We want to thank DHL for giving us the opportunity to contribute to its event. We also want to express our thanks and appreciation to the ABX and AMES employees who participated: they included Flight crewmembers Ben Gruber, Scott Byer, and Joe Howard; Leo Kafka and Rick Sapp from Maintenance; and Aron Brady from AMES.

As most of you know, DHL has an extensive expansion project taking place down at CVG. We are advised that the construction is going well, and there is a target date of October to begin testing of the sort system that connects the new area to the express sort to allow some time to work through issues prior to the busy holiday season. The plan for completion of the new crew facility is targeted for the middle of November.

Some time ago, UPS announced its intention to buy Dutch rival TNT Express for $6.4 billion. E-Cargonews Asia recently reported that the European Commission that regulates EU competition has temporarily suspended its investigation after opening up a preliminary probe into the acquisition that was announced in June. The Commission had said that the deal would narrow an already small international parcel delivery sector. The pause could push back a November 28 deadline set by the Commission to clear the deal.

FedEx has announced an intention to offer voluntary buyouts in the US to mostly non-operational staff groups to improve efficiencies and reduce costs. While FedEx has seen improved earnings in a stronger ground-shipping business, the soft global economy has had an impact on its express volumes. The article from the Wall Street Journal.com indicated that the restructuring would focus primarily on the FedEx air fleet.

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


Bob Greene's INFOline  |  August 2, 2012
Hello, ladies and gentlemen. This is Bob Greene, Manager of Ground Operations, with the ABX Air INFOline for August 2, 2012.

Safety
Recently our business partner DHL has asked for our help in getting the word out regarding two aircraft ramp safety concerns: the wearing of Hi-Vis Vests and the control of FOD.

As you know, an aircraft ramp can be a fast-paced, high-traffic, congested environment, with moving aircraft, equipment, vehicles and people. When you add to that mix either bad weather or darkness, then there are many opportunities for accidents or injury. Our first concern is to avoid injury to any person working on or visiting the aircraft ramp. If you are that person, it’s important that you remain constantly aware of your situation and surroundings so you can avoid being in the path of any moving equipment. It’s equally important that the operators of ramp equipment can see you, so they can avoid you. The best way to be visible to others who are operating equipment on the ramp is to wear Hi-Vis clothing or reflective vests. This is not just a good idea; it’s required by DHL throughout their network for all persons working in and around the aircraft ramp environment.

A recent check showed that some aircraft ramp areas are starting to accumulate FOD (Foreign Object Debris, or Foreign Object Damage). The FAA defines FOD as: Any object, live or not, located in an inappropriate location in the airport environment that has the capacity to injure airport or air carrier personnel and damage aircraft. FOD can include things like nuts, bolts, washers, safety wire, aircraft parts, tire fragments, mechanics' tools, catering supplies, personnel badges, pens, pencils, luggage tags, water bottles, plastic debris from freight pallets, concrete and asphalt chunks, etc.

FOD can severely injure ramp workers or damage equipment. Types of potential damage include: cutting aircraft tires; being ingested into engines; or becoming lodged in mechanisms affecting flight operations. Personnel injuries or even death can occur when jet blast propels FOD through the airport environment at high velocities.

FOD control is mandated by the FAA, but it also makes good economic sense. It is estimated that FOD damage to aircraft costs the aviation industry $4.4 billon annually. The cost to repair a FOD-damaged aircraft engine can easily exceed $1 million. FOD also can have extensive indirect costs, including flight delays and cancellations, schedule disruptions, and potential liability because of injury. DHL is increasing their emphasis on FOD prevention by fitting ramp tugs with strong magnets to remove loose metal from the drive lanes and around the aircraft, placing FOD buckets on each crew stair, performing more regular sweeping of all ramp areas, and addressing FOD prevention with ramp employees. All of us who work on or visit the aircraft ramps need to do our part by cleaning as we go, picking up any loose debris, ensuring that items placed in receptacles are secured, and actively participating in pre-ops and post-ops FOD checks. FOD control is everyone’s job!

Compliance
In the compliance area ABX recently completed two successful audits by outside agencies. ATSG conducted an I-9 audit, checking our compliance with performing certain pre-employment verifications and background checks and maintaining the associated records. The I-9 audit showed no significant findings. Also, the TSA performed their annual corporate audit of ABX’s cargo and aircraft security procedures and records, with no findings or observations. Hats off to the many persons in various departments who help to keep us in compliance.

Our People
Employee anniversaries for August include Capt. Larry Cavazos with 30 years of service, Manager of Maintenance Control Dave McFarlane with 25 years, Line Maintenance Representative (ORD) Scott Greenfield with 15 years, and Reliability Analyst Craig McKenzie with 1 year.

ATSG Investor Conference Call
ATSG will host an investor conference call to review its financial results for the second quarter, ended June 30, 2012. The call is on Friday, August 3, 2012, at 10:00 a.m. Visit the ATSG web site for more information about listening to or participating in the call.

That’s all the news for this week. Thank you for all you continue to do for our Company.


John Starkovich's INFOline  |  July 19, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for July 19, 2012.

Safety
There were no OSHA cases filed for the 2nd quarter 2012 nor were there any reported incidents of lasers being aimed at ABX aircraft or our pilots.

Fatigue Risk Management processed four Fatigue Assessment reports for flight crewmembers calling off due to fatigue. Two of the events involved hotel issues; one was a scheduling change and one involved failure to properly manage rest.

Compliance
For the second quarter there were 13 internal audits scheduled and completed, 11 external audits, and 18 Ramp and 18 Station audit events conducted.

ABX Air recently had two federal agency audits that were favorably completed. One was an FAA dangerous goods inspection of the DHL/ABX operation in Newark, and the other was a TSA security inspection in Seattle (BFI) and Los Angeles (LAX).

Company News
Our on-time service performance for DHL for the month of June, subject to verification, was 97.94 percent. For the month of July to date, we are at 98.20 percent.

ABX is currently working on the logistics and obtaining the necessary permits and approvals for handling DHL flights into Mexico City in September and adding the city of Queretrero onto an existing route. Both are to be flown by aircraft that are already in service for DHL.

On July 12, 2012, ATSG CEO Joe Hete attended the opening of the DHL Express North Asia Hub in Shanghai. According to various news articles, this $175 million hub is the largest express hub in Asia. DP-DHL chief executive Frank Appel said that the hub “is a logistics milestone in DHL’s Asia Pacific network and the culmination of a multi-hub and aviation strategy that cements our leadership position in terms of connections, convenience and cost-effectiveness.” Jerry Hsu, CEO of DHL Express Asia-Pacific, said: “In Asia, some GDP growth numbers have been revised downward, but we are growing faster than GDP rates, the market, and our competitors. China is double-digit. India is high. Japan is bouncing back. Southeast Asia is doing well.” The Hub utilizes technologies designed to reduce its carbon footprint including energy efficient lighting, solar-powered hot water system, and an energy saving device that allows certain components to go into sleep mode automatically when not being used. DHL also advised of its intention to add eight dedicated aircraft to service high demand routes between Shanghai and North Asia, Europe, and the US.

In my last INFOline, I mentioned the new paint livery that was agreed upon for aircraft 220CY which is one of the 767-300’s. I am pleased to advise that 220 has now entered service for DHL and is expected to be placed on the Cincinnati (CVG) to Los Angeles (LAX) route.

Other News & Information
DHL Express Americas recently announced the appointment of Shawn Pandorf as Manager of International DG Hotline effective July 21, 2012. The name may sound familiar because Shawn worked for ABX from 1985 to 1994 and from 2003 to 2008, with the majority of her time spent in managing the Hazardous Materials department. She will be reporting to Steve Elkins, the Director of Network Air operations and Compliance for DHL. Our congratulations to Shawn.

Steps for making a new hangar possible here at the air park continue to progress. It was reported in the Wilmington News Journal that Tax Increment Financing (TIF) is being seriously considered by the city and school officials with the intention of the city of Wilmington to pledge some of the income tax revenue that the city will receive from employees at the new hangar to the city schools.

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


Jeff Walling's INFOline  |  July 5, 2012
Hello, this is Jeff Walling, Manager of Human Resources, with the ABX Air INFOline update for Thursday, July 5, 2012.

Safety
Last Friday’s derecho is a good reminder that everyone should be prepared for a natural disaster hitting home. A “derecho” is a rare, widespread, and long-lasting wind storm caused by a line of fast moving and severe thunderstorms that travels a great distance. The word “derecho” is derived from the Spanish word for “straight” to distinguish the straight-line winds from tornados. The June 29 derecho started near Fort Wayne, Indiana, and traveled over 700 miles across Ohio and West Virginia, before spreading into Virginia, Maryland, and southern New Jersey. The storms had wind gusts in excess of 80 mph blowing down trees and knocking out electrical power to millions of families. At least 23 people lost their lives in the storm. Even today, a week after the storm, it’s reported several hundred thousand people are without electricity.

The Federal Emergency Management Agency (FEMA) recommends that everyone have a disaster supply kit at the ready that would allow you and your family to survive at least three (3) days without basic services. Depending upon where you live and the potential natural disasters in your area, you may want to have more than a three-day supply. The FEMA web site, www.fema.gov, has helpful recommendations about building your own disaster supply kit, as well as excellent information about preparing for natural disasters.

Company News
In company news, ABX recently mailed Total Compensation reports to full-time and part-time employees. These reports are designed to not only report the direct compensation you earned in 2011, but also to highlight the value of your benefits package. The value of your benefits is often overlooked and adds significant value to your total pay package. Be sure to take a look at your personalized report. If you have any questions about your report, please ask someone in Human Resources.

Healthy Directions
Our wellness program, Healthy Directions, just completed its second quarter. We are in the process of tallying the activities of the participants to find out who achieved the third quarter health insurance discount. You need 462,000 steps during the second quarter to qualify for the discount.

I’d like to share a personal testimonial about our wellness program. I started the Fitbit program in late December, and I was surprised to learn I was averaging just 4,000 steps a day. The Fitbit has helped me increase my exercise activity. During the second quarter I averaged around 9,000 steps a day and even earned the 20,000 daily step badge for the first time in May. I’ve also used the Fitbit web site to help improve my diet. As a result, I’ve lost weight, too. Overall, I feel better. The Fitbit really works.

If you don’t have a Fitbit and would like one, contact Beth Allen in Human Resources, ext. 62157. More information about the Fitbit and Healthy Directions can be found on MyABX.com

Industry News
In industry news, FedEx Express announced the purchase of 19 Boeing 767-300 aircraft, which is in addition to an earlier order for 27 aircraft of the same type. FedEx plans to use the 767s to replace aging Airbus A310 and McDonnell-Douglas MD-10 aircraft. FedEx noted in their press release that the new aircraft would provide a 30 percent improvement in fuel efficiency over the retiring airplanes. Delivery is expected between 2015 and 2019.

Our People
In People news, I would like to congratulate Capt. Adrian Ruddle who is celebrating 35 years of service with the Company this July. Also, congratulations to Capt. Kevin Sullivan, who is celebrating 30 years of service. Celebrating their silver anniversaries are Manager of Engineering Joe Freese and First Officer Mark Wentz. Celebrating 20 years of service is Manager of Maintenance Services Tim Hopkins, and celebrating 15 years of service is Melissa Woolum of the Information Services department. If you see or speak with these folks this month, be sure to congratulate them.

Finally, two long-service employees recently announced their retirements. Lynn Bare in the Accounting Dept. recently retired after 23 years with the company. Lynn started her career as a line service attendant pumping fuel. Besides working in the Accounting department, she also worked in System Contingency, Logistics, Ground Operations as a sort supervisor, and Cartage to name a few of the positions she held over the years. Congratulations, Lynn, on your retirement!

Also retiring is Mike Ebert of Airborne Maintenance & Engineering Services (AMES). Mike began his career 38 years ago – way back in 1974 – with Midwest Air Charter and was one of original line maintenance representatives based at the ATL station. Later he moved to Wilmington and was the manager of heavy maintenance for the Caravelle aircraft. In the Airborne Express era, Mike held key leadership positions in Line Maintenance. Mike played a significant role in helping our airline grow in the ‘80s, ‘90s and '00s while ensuring on-time service to our customers. More recently, Mike helped transition the ABX Aircraft Maintenance department into AMES. Mike, congratulations on your retirement!

I wish both Lynn and Mike all the best.

Well, that’s all I have for this week. John Starkovich will be back in two weeks with the next INFOline update. Thanks for listening, and remember to stay safe and drink plenty of water during this heat wave.


John Starkovich's INFOline  |  June 21, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for June 21, 2012.

Safety
It is definitely summertime in Ohio. This week has seen a series of days in the upper 80’s so it is time to remind everyone to stay hydrated and avoid excessive heat. [Heat Stress safety training]

Compliance
In past INFOlines, you will recall that I have mentioned the Safety Management System (SMS). It is a top-down business approach to manage safety risks. The ABX executive team attended familiarization and training sessions on June 20 and 21 with members of the FAA certificate management team out of the Detroit office and the Washington D.C. FAA SMS Team. The program covered the basic principles of SMS and a preliminary gap analysis was completed. A gap analysis is simply a review of our current safety programs to see what may be missing or what “gaps” may be present. The next step is to do a detailed gap analysis and then follow through with identified changes and implementation.

By letters dated June 14, 2012, ABX was advised by the FAA that the ABX line stations in Dallas-Fort Worth (DFW) and Kansai International Airport (KIX) in Japan both successfully passed third quarter Element Performance Inspections under the Air Transport Oversight System.

Company News
Our on-time service performance for DHL so far this quarter, subject to verification, is 98.28 percent. For the month of June to date, we are at 98.07 percent.

Many of you are familiar with the grey-colored uniforms worn by our flight crewmembers. That is in the process of being changed. The new uniform color is going to be a dark navy with silver braiding. There will be two neckties. One will have a patriotic-themed pattern and the other will be a navy blue tie with a runway “A” pattern. The unique grey uniforms have served us well but that uniqueness came with a higher cost, and it was determined that changing to a fresh new color made sense. The Flight Department worked closely with the Union Uniform Committee, and we thank them for their input and participation in the effort. The changeover is expected to take place in the 4th quarter.

On June 18, 2012, our holding company, ATSG, filed what is called a Form 8-K with the Securities and Exchange Commission to advise the general public that it has amended its preferred stock rights plan to permit all shareholders to purchase up to 17.49 percent of the company stock, and in conjunction with that change ATSG also amended its agreement with Red Mountain Capital Partners LLC to allow for certain changes in the parties' Confidentiality and Standstill Agreement dated February 3, 2009. Red Mountain is one of our largest shareholders and the amended agreement allows Red Mountain to increase their holdings from 14.9 percent to 17.49 percent of ATSG’s outstanding common shares. The increase was made contingent on a requirement that Red Mountain vote any of the shares in excess of 14.9 percent in accordance with the Board of Directors’ publicly stated recommendations. Please refer to the filing itself for the details of the amendment and other matters.

As many of you already know, DHL has agreed to deploy one of our 767-300’s into its domestic system on the CVG-to-LAX route. The aircraft was originally scheduled to be painted all white with ABX markings. However, during a business meeting between Joe Hete and DHL Executives Neil Ferguson and Red Alexander, the paint livery of the aircraft was discussed. After working through the details, it was determined that the aircraft will have the familiar DHL yellow and red on the front half and remain white on the back portion. The aircraft is due back from paint this week so you may see it on the ramp here in ILN. My thanks and appreciation to the folks in Maintenance that made the paint change happen; this airplane was at the vendor being prepped for paint when the change was requested, so it was literally a last-minute request.

Other News & Information
The latest tenant at Wilmington Air Park is Science Applications International Corporation (SAIC). SAIC will occupy Hangar 1024. It provides scientific and technical services to the US government and selected commercial markets and is regarded as a substantial player in the unmanned aerial vehicle industry. The Wilmington News Journal reported that SAIC has a 3-month lease with the Clinton County Port Authority.

On May 24, 2012, Deutsche Post DHL CEO Frank Appel and DHL Express CEO Ken Allen each made a presentation during Capital Markets Day. Mr. Appel’s presentation highlighted Brazil, Russia, India, China, and Mexico as the most relevant markets for long-term DHL growth. It also pointed to double-digit growth in Asia-Pacific and the Americas for DHL Express. Mr. Allen’s presentation focused on the successful execution of their three-year plan, and their defending and strengthening DHL’s number one position in the international time definite express business.

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


Jan Woolums' INFOline  |  June 7, 2012
Good afternoon. This is Jan Woolums with the ABX INFOline for June 7, 2012.

Safety
In Ohio alone, there were 31,231 accidents that were caused by distracted driving between 2009 and 2011. Texting or receiving a text message takes about 4.6 seconds, which at 55 mph is equivalent to driving the length of a football field. Seeing these statistics only confirms that the banning of texting and driving is needed. Just this week it was announced that Ohio will become the 39th state in the nation to ban texting while driving. Ohio’s ban on texting while driving passed in the legislature and is awaiting the governor’s signature. House Bill 99 would ban writing, sending, or reading a text message on a handheld electronic wireless communication device while driving. The governor has indicated that he will sign the bill. The ban will go into effect 90 days following the governor’s signature. However, drivers will have a six-month grace period. A violation of HB99 will be a secondary offense for adults and a primary offense for drivers under the age of 18. A person found in violation will be fined $150 and suspended license for 60 days. A repeated violation could result in a $300 fine and a one-year suspension of license. Once the bill passes, HB 99 would require employers to have a written policy banning texting while driving when employees are working.

Another leading cause of accident or injury is fatigue. Fatigue is a real problem that affects everyone. Here at ABX we spend a lot of time addressing this issue with the flight crews due to the nature of their work, but it also affects mechanics, professional load masters, dispatchers, and all levels of management. This month’s edition of the ABX SafetyLine offers a link to the FAA video entitled Grounded, and the first-rate Fatigue Countermeasures Training. Please take the time to check this out.

Compliance
One of the issues that we’ve much improved on is our noise signature at Stansted. Steve Janasov, ABX Safety Director, received a report today concerning the statistics for May. ABX was 10 for 10 off runway 4, 12 for 12 off of 22, for 100 percent compliance. Thanks to the Safety Committee and Flight Standards in resolving this issue with some improved procedures and to our crews for executing this plan well. Keep up the good work!

Company News
Moving on to company news, I would like to start by recognizing and thanking several employees for their long-time service to the company. Celebrating 35 years with the company is Capt. Bob Cirka and Capt. Rick Ziebarth, along with Paul Smith who is celebrating 25 years. Two 15-year employees celebrating June anniversaries are Stephen Ley and Greg McDowell. Again thank you for all your years of support with the company.

Just this week, ATSG announced that its ABX Air subsidiary has deployed two Boeing 767 freighter aircraft under short-term ACMI arrangements in support of the DHL U.S. air network. Joe Hete, President and CEO of ATSG, said, “Our strong, long-term relationship with DHL is based in part on our ability to meet both its short- and long-term requirements for access to efficient medium wide-body freighters. As DHL’s principal source of freighter airlift in North America, we will make every effort to support DHL’s future freighter aircraft requirements as they may develop in the future.”

DHL’s CVG hub began a large expansion project in March, which includes an additional sort building and new entrance areas that will be utilized by the flight crews and ramp employees. As a part of this expansion, they also will be including a new office area for the airline group and conference rooms available to the carrier to schedule meetings with the flight crews. The new pilot’s area will have ten sleeping bunk rooms, a 102-seat dining room, a common area seating 134 with full cafeteria, shower facilities, U.S. Customs office, pilot work rooms, and bag storage, with separate parking and entrance. The security entrance in the new building will support all the same functions that the crews have now at the main building.

Along with the construction at the CVG hub, DHL also reported 20 percent growth for 2011. Approximately three years ago, ABX was undergoing some significant challenges. I’m sure there were some outside the company and maybe some inside the company that wondered about the future of ABX. Through hard work, determination, and our high level of service for our largest customer, DHL, we have grown from 21 aircraft in 2009 to 32 in our system today. What was 13 aircraft supporting the DHL network three years ago is now at 20. This is a tribute to the hard work from our employees who embraced the change and the crews’ willingness to support being domiciled in CVG after years of calling ILN home. Again thank you to all of our employees.

That’s all I have this week. Have a safe weekend.


John Starkovich's INFOline  |  May 24, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for May 24, 2012.

Safety
It is the end of the school year, and there are lots of graduations and other events going on. Please have fun and enjoy yourself, but do not drink and drive. If you are a host or have a friend that is not in a position to drive safely, offer to chauffeur them or arrange an alternative to them driving. It is the right thing to do.

Compliance
In past INFOlines, you will recall that I have mentioned the Safety Management System (SMS). It is a top-down business approach to manage safety risks. There are four pillars to the program that include safety policies, safety risk management, safety assurance, and safety culture. The ABX executive team is scheduled for training sessions during mid-June with members of the FAA Certificate management team out of the Detroit office and the Washington DC FAA SMS team. The program will cover the basic principles of SMS and perform a preliminary gap analysis, which then leads to the more detailed work and ultimate implementation.

Company News
Our on-time service performance for DHL so far this quarter, subject to verification, is 98.28 percent. For the month of May to date, we are at 97.69 percent.

ABX has been advised by the Teamsters Local 1224 that the ABX flight crew members have ratified an agreement called the Asian Side Letter that was negotiated between the parties. It allows for certain changes in the applicable provisions of the collective bargaining agreement to allow for a more cost-effective operation in the Far East and pave the way for growth with existing and new customers. ABX thanks its crewmembers and the union leadership for taking this step.

In a press release the Clinton County Port Authority announced that it has come to an agreement with ATSG on the terms and conditions for the funding of a new hangar. This is good news for our sister company, Airborne Maintenance and Engineering Services (AMES). The planned facility would have two bays and accommodate wide body aircraft. While there is still more that needs to be done, this was an important step. It could mean an additional 250 jobs for the facility. Congratulations to AMES and the Port for this agreement.

Everyone has heard of the UPS announcement of taking over TNT Express. Frank Appel, the chief executive of Deutsche Post DHL, told the Financial Times recently that this integration of two companies often “distracts from the service and the customers,” and he sees an “opportunity to capture market share”. With DHL being the largest customer that ABX serves, that is good news, and ABX must continue to provide the value and reliable service in support of DHL in its efforts.

Other News & Information
As we ready for the Memorial Day weekend, just a brief reminder and a suggestion. Please kindly take a few minutes to remember what this holiday represents. It is to honor and remember those in the military who have given the ultimate sacrifice of their lives for all of us and our country with their service. If you get a chance, please join in any of the local community events that honor these men and women and their families. If nothing else on Monday, take just a few minutes—even just a silent pauseto remember them in your own way, as they have given their lives so that we can enjoy all of the privileges that we have living in the US. The enormity of that sacrifice and the effect on their families is almost impossible to comprehend. Have a safe, happy, and reflective Memorial Day.

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  |  May 10, 2012
This is Bob Gray with the May 10, 2012 INFOline.

Safety and Compliance
During the last week of April, I had the pleasure of attending a Fatigue Risk Management Symposium in Washington D.C. along with our Director of Safety, Steve Janasov. The Symposium was sponsored by Airlines for America and the Cargo Airlines Association with the purpose of bringing together airline operators, safety and labor representatives, along with regulators and fatigue experts to explore the best fatigue management practices to date. Speakers included Mark Rosekind from the NTSB, Dale Roberts from AFS-200, Dr. Melissa Mallis and Leigh White from Alertness Solutions Inc., and managers of major airline fatigue programs. Steve and I quickly came to realize that the ABX FRMP is one of the better ones in operation today. That said, the symposium was a great learning experience, and we’ll be incorporating some of the lessons learned along with some pertinent scientific data into our program in the near future.

In other regulatory news, Rex Gunning reports that the requirement to perform age 60 line checks for our pilots who are age 60 and over is no longer necessary. When the pilot mandatory retirement age was raised to age 65, Congress also required that any pilot who chose to continue flying past age 60 had to have an additional line check over and above those mandatory for other crewmembers. A recent notice from the U.S. Department of Transportation and the Federal Aviation Administration removes the requirement for a line check every 6 months for pilots serving in a 121 operation who had attained age 60. We needed to receive approval for a revision to our Training Manual that removed the age 60 line check requirement before we could take advantage of the change. Captains age 60 and over will still require an annual line check.

Employee Recognition
Last week, it was my pleasure to present to Rex the ABX Air Gold Wings of Excellence for his outstanding contributions to the Company. During the past few years, there have been many ABX employees that have excelled above expectations, and who could have qualified for this award, but after careful consideration, Rex was determined to be at the top of the list.

As a result of his efforts in coordinating the many audits and inspections that we experienced, ABX Air successfully returned to the fast growing Asia marketplace. His efforts and dedication in meeting the requirements of our customers and the regulatory authorities – despite the language and cultural barriers – truly reflects our Company values of Teamwork, Customer Satisfaction, and Quality. Our return to intra-Asia flying, demonstrates to the marketplace that we can operate reliably, safely, and dependably on the other side of the world. And this helps us build our business in a key marketplace for the Company. Congratulations, Rex, and thank you for everything that you do for our Company.

Congratulations to the following people who are celebrating anniversaries with ABX: Joe Stuber - 35 years; Bob Moser - 25 years; those celebrating 20 years include Bart Blum, Capt. David Chaffin, Capt. Craig Griffis, Allan Kopack, and Capt. David Ross; and celebrating 15 years are Russell Leighton, Michael McDonough, and William Pitchford.

That’s all for this week. Thanks to all of you for your work at making ABX successful.


John Starkovich's INFOline  |  April 26, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for April 26, 2012.

Safety
Three ABX employees had accidents the 1st quarter. One involved a slip and fall while walking; one was a fall off a ladder; and the third one involved an individual hitting a leg on a low barrier. Most of us have fallen or had accidents and when we looked back, we could see where we had failed to pay attention. I do not know anyone that purposefully gets hurt and, regardless of what may have been the cause of the above accidents, we all need to stay aware of our surroundings and attentive to any unsafe conditions. Please for your own sake, be careful.
 

The FOQA Connection is about to come out with its second edition. It will focus on when to use Speed Brakes and when to use the Flaps for descent and speed adjustments on our 767s. Please look for it on the web site. The article is provided by the FOQA Monitoring Committee that is headed up by Jeff Parrott.
 

Compliance
ABX recently was the subject of a Dangerous Goods Audit from authorities in Belgium for a flight being operated for TNT. No non-conformities were found, and we passed our dangerous goods audit for the 2012-2013 cycle. Thank you to all who were involved.
 

Company News
Our on-time service performance for DHL for the first quarter, subject to verification, was 98.83 percent. For the month of March, we came in at 98.48 percent; and April to date, again subject to verification, is at 98.72 percent.  

As reported in the previous INFOline, Pat Wallace will be retiring on Friday after over 20 years with the Company. Please take a moment to wish Pat a healthy and happy retirement. Dawna Kennedy, our HR Generalist who was our benefits guru and Fitbit coordinator, is leaving ABX to be a stay-at-home mom with her son, Reid. Dawna has been with ABX for six years and had been with Airborne Express in Seattle for six years. Dawna will be greatly missed and we all wish her the best.

Walking routes have been posted in the plastic notice holders near the restrooms, in the break room and by the elevator and on MyABX.com, for those of you looking to get your Fitbit steps in while enjoying the outdoors. Please be careful and walk only in appropriate areas.

Other News & Information
The ATSG annual stockholder’s meeting is scheduled for Friday, May 11, 2012 at 11:00 a.m. local time at Wilmington College's Boyd Center / Heiland Theatre here in Wilmington, Ohio. In addition to the report on the Company’s business results for 2011 and the first quarter of 2012, there will be the election of two directors to the Board of Directors for a term of three years; ratification of Deloitte & Touche as the independent public accounting firm for the 2012 fiscal year; an advisory vote on executive compensation; and other business properly before the board. The Proxy Statement and Annual Report are available for stockholders of record.  Instead of a paper copy, the documents are available online through the Internet. Paper copies remain available upon request.

This weekend race fans may want to attend events here at the Wilmington Air Park. The East Coast Timing Association (ECTA) will be holding the first of a number of events this year involving timed single-car runs in a straight line. There are also events on certain weekends sponsored by the Sports Car Club of America and the Miami Valley Sports Car Club. Please see the posting or Internal Communications Memo #12-42 for the dates and details. Should you be coming into work this weekend, please drive safely as always and be aware of the expected increase in traffic.

On Wednesday April, 25, at approximately 10 a.m., two Ohio National Guard F-16s out of Toledo radioed an emergency to ILN Tower and requested to land. Mike Ward in the Tower immediately notified CFR (Mike Burton), and he was ready as the fighter jets prepared to land. Two other LGSTX employees (Roger Hall and Phillip Burton) heard the exchange between the Tower and CFR and hustled out to marshal the aircraft into parking. One aircraft eventually flew back on Wednesday evening, and the aircraft with the mechanical problem remained overnight. Thanks to all employees involved for a job well done.
 

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


Terry Scherz' INFOline  |  April 12, 2012
Good afternoon. This is Terry Scherz with the ABX INFOline for April 12, 2012. 

Safety & Compliance

As we get closer to the implementation of our new Safety Management System, you will see some enhancements to our present Safety and Security Policy. Our policy will remain tied to our core values and will be more robust in several areas.

One element that is getting significant attention is a formal risk assessment process. Recently the risk assessment matrix promoted by an FAA Advisory Circular has been incorporated into our Aircraft Maintenance Manual and is being used by our Aircraft Maintenance CASS Committee. CASS is an acronym for Continuous Analysis and Surveillance System.

This same matrix also is being used by our Safety department for classifying aviation and other safety-related reports.

Separately in a joint effort involving Ground Operations, Aircraft Maintenance, Flight Department and Safety, all ABX aircraft have been equipped with the 2011-2012 edition of the Emergency Response Guidance for Aircraft Incidents Involving Dangerous Goods, commonly known as the Red Book.

This document is published by the International Civil Aviation Organization and is endorsed by numerous pilot and airline associations around the world. Thanks to all involved in this effort.

Company News
This week we are adding N362CM, our second 767-300, to our operating certificate. Next month we expect to add two more 767-300s to our fleet.

Approximately three short years ago, ABX Air was undergoing some significant challenges. We were redefining our company. Our workforce shrunk dramatically. We had to figure out how to do more with less, without diminishing our high standards of safety and performance and our excellent reputation in the industry. I am sure there were some outside the company and maybe even a few inside the company that wondered whether we could pull it off.

Well, in 2009 we were left with 21 aircraft to operate. Today with the addition of the three 767s we are presently adding to our fleet, we will be operating 32 B767s.

The employees of ABX have accomplished a lot in those three years. You have a lot to be proud of. We recognize that we have an exceptional team. It does not go unnoticed.

Japan Airlines
I received a letter this week from Japan Airlines for whom we operate one aircraft on the other side of the world.

The letter came from a Senior Management Executive of Engineering and Maintenance and was titled Gratitude of ABX Air Performance in Fiscal Year 2011.

He starts off by saying, "I would like to express my sincere appreciation for your significant efforts to keep JAL operation safe and on schedule." He goes on to say that our efforts were steadily producing positive results, especially dispatch reliability of 99.47%.


A special thanks to Shig, J.C. Reese, our Ground Operations group, and our Flight Crews for providing JAL with exceptional service.

 

Employee News
Employee anniversaries for April include:
25 years: Jerry Heilgeist (Ground Ops), Capt. Neil Beaumont (Flight), and Capt. Ron Myers (Flight)
15 years: Tony Sweet (Maintenance), Brian Entwhistle (Flight), and Joseph Howard (Flight)
10 years: David Fortney (MIA) (Maintenance)
5 years: Kate Velez (MIA) (Flight)

Many of you know Pat Wallace, the young lady who sits in front of Joe Hete's office in the ATSG wing of the Administration Building. Pat is retiring later this month. Her last day is Friday, April 27th. Stop by and wish her well; she will be missed.

 

That is all I have for this week's INFOline. Thanks for your efforts and be safe.
 


John Starkovich's INFOline  |  March 29, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for March 29, 2012.

Safety & Compliance
Issue 3 of the ABX Air SafetyLine for March 2012 has been published and is available on the Safety web site. It includes an article by Flight Crewmember Jeff Parrott on FOQA and an article on NOTAMs. There also is an article on the M1-A Aircraft Log Sheets regarding fuel entries and the importance of accurate, legible numbers. Please visit the Safety web site and read some of the informative and helpful articles.

Company News
Just a reminder that ABX has job openings listed on our jobs board. Go to www.abxair.com and click on the Careers section. Our sister companies maintain their own job sites at www.agsjobs.com; www.atsginc-jobs.com; and www.airbornemx-jobs.com. So if you know someone that is looking for a job and who would be an asset to the company, please encourage them to apply, especially our returning military veterans. Submitting an application will not guarantee them a job, but not applying means they have no chance at all.

Our on-time service performance for DHL for the month of March is at 98.7%.

Sunday is April 1. It marks the end of the 1st quarter with the ABX Wellness Program. If you have not taken a total of 423,500 steps in the first quarter, or completed the online alternative UnitedHealthcare Health Rewards coaching program in lieu of the Fitbit pedometer program, by midnight on March 31, you will not be eligible for the discount in your health care contribution during the second quarter. The 423,500 steps is an average of 5,500 a day without counting the 1st week in January and one additional week. For the second quarter, you again will need to meet the average of 5,500 steps/day or complete the coaching program to be eligible for the discount in the 3rd quarter. The total steps for this period of time goes to a total of 462,000 steps by averaging your 12 best weeks out of the 13 week total. If you have any problem logging in or getting started on the coaching program, please contact Dawna Kennedy at ext. 62150. I will continue to remind you of this, as a 17% reduction in your health care contribution is significant. Even more important than the dollars that you will save, is the benefits that you can get to your health and fitness. It is for your own good in almost every way.

Some folks have reported losing their Fitbit pedometer when it popped out of the holder. A suggestion from a fellow employee led to the purchase of tethers suitable for use with the Fitbit. They are available to you for the modest price of $0.40. Please call Dawna Kennedy at ext. 62150.

Other News & Information
On March 14, 2012, DHL announced a $47 million expansion in CVG. The expansion includes a 193,000-square-foot sort facility to be connected to the existing sort and is projected to be open by November 2012. DHL also reported approx. 280 new jobs over the next 12 months, with 120 being permanent positions. The expansion is good news for ABX as it signifies continuing growth for our largest customer, and hopefully that will translate into the need for more aircraft and more jobs for ABX employees.

Yesterday, I attended the Red Cross Heroes Awards Breakfast with a group of other ABX employees. I had been convinced to attend by Jean Radcliffe who works in the Purchasing department and has been active with the Red Cross. Have to admit, it was an enjoyable and worthwhile event to recognize individuals that were Red Cross Heroes. It also kicks off the Red Cross annual fundraiser. I did not realize that the Red Cross had opened 6 shelters; served more than 14,000 meals; and distributed 23,195 clean-up kits in response to the tornadoes that hit the Tri-State area. The guest speaker was Adam Widener, a Cincinnati native and veteran, seriously injured in Afghanistan and now a part of the wounded warrior project. During his presentation, slides of various returning veterans that had been seriously injured and lost limbs were shown in the context of recovery. Reminded me of how fortunate we are here in the U.S. for the courage, service and sacrifice of our military families and the debt of gratitude that we owe to all of them. Thank you to all of our military.

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


Eric Plas' INFOline  |  March 15, 2012
Good afternoon. This is Eric Plas with the ABX INFOline for March 15, 2012.

Safety

While it's not officially springtime the weather is certainly looking that way. In Ohio spring also means Tornado season and as witnessed recently by our neighbors in Indiana and Kentucky it can be deadly. Annually in March ABX participates in a state-wide tornado drill to help ensure your safety. This year it will occur on March 28 at 9:50 a.m. (in this business that's 1350 Zulu). A specific message with instructions will precede the drill so please stay aware and know what to do.

 

Wellness

A reminder from Human Resources: all those participating in the wellness program please send the email address you use on your Fitbit account to Dawna Kennedy so she can track your steps for the second quarter health insurance discount.

 

Performance

Fourth quarter on-time performance was 98.52 percent, which places us in the second tier of our incentive program with DHL. Our financial performance was 1.15 percent better than plan which is razor thin but good enough to place us in the first tier of our quarterly financial performance incentive plan. Accordingly bonus payouts will be issued March 16.

 

Business News

ATSG recently competed their fourth quarter investor call. If you missed the call, it's still available at www.atsginc.com for 30 days following March 6.

 

On Wednesday of this week a groundbreaking took place at CVG where DHL announced they are planning a major investment into the CVG hub. Plans call for a $47 million dollar investment to add a 200,000-square-foot sorting facility and an upgrade to its existing 520,000-square-foot building along with 280 new jobs. In their press release DHL states that the CVG hub is responsible for processing 2.6 million pieces a month, which is 92 percent of their U.S. shipments as well as the majority of Canada, Mexico and Latin America shipments. They anticipate 10 to 15 percent more shipments to move through CVG this year. It a good thing when your number one customer is expanding, adding jobs and projecting growth!

 

It feels like we just completed flying the Valentine's Day rush and here comes Mother's Day! While not as large as Valentine's Day, Mother's Day is the number two flower holiday. While we are still working the schedules with our MIA customer, you can be sure that our flying activity from Bogota to Miami will increase significantly in mid-April. So make sure Mom has some flowers; it's good for business and she deserves them!

 

That is all the news we have for this week. Thank you for your time and all that you do for our company. John Starkovich will be back with an update to the INFOline on March 29, 2012.


Steve Janasov's INFOline  |  March 1, 2012
Good afternoon. This is Steve Janasov with the ABX INFOline for March 1, 2012.

Safety
Recently, ABX management conducted a survey of the pilot group. One of the questions concerned the establishment and implementation of a ‘Safety Management System’ and the development of a ‘Just Culture’ at ABX. While most of the respondents appear to welcome an FAA accepted Safety Management System, many commented that they were not familiar with the concept ‘Just Culture.’ I thought I’d take a few moments to summarize it for you.

In the late 1970’s, James Reason, a noted United Kingdom psychologist famous for the Swiss Cheese Model, postulated that the components of a viable safety culture include; reporting, learning, informed, flexible, and just cultures. He defined a ‘Just Culture’ as one composed in an atmosphere of trust in which people are encouraged and even rewarded for providing essential safety-related information. Of equal importance, a ‘Just Culture’ also is one where a clear line is drawn between acceptable and unacceptable behaviors. He further defined a ‘Just Culture’ as one that promotes a questioning attitude, resists complacency, commits to excellence, and fosters both personal accountability and corporate self-regulation regarding safety matters. To be effective, the culture must also be informed, willing to report errors and near misses, flexible and adaptive to change, and willing to learn the correct lessons from the safety information disclosed and apply appropriate corrective actions. There are lots of other aspects of a ‘Just Culture;’ including its principles, types of unsafe behaviors, and interface with negligence and culpability. These topics along with the many tangible benefits of such a culture will be explored in more detail in the March edition of the SafetyLine newsletter.

Compliance
One program that complements the ‘Just Culture’ philosophy is the FAA’s Voluntary Disclosure Reporting Program, also known as VDRP. The VDRP is one of several voluntary safety programs put into place by FAA policy. This one allows airlines to submit FAR violations that are self-discovered by company employees before the violation is found by the FAA. The advantage of this process is that by voluntarily self disclosing there are no penalties placed against the airline. Excepted from VDRP are individual airmen, hazardous materials, and drug and alcohol; where other voluntary programs already exist. A letter is written by the FAA, stating the details of the violation; it is filed and remains on record for one year. There are six stages in the submission and approval process for a VDRP disclosure:

  • Stage 1 – Initial Notification by the airline;

  • Stage 2 – Initial Notification Response by the FAA;

  • Stage 3 - Written Report, where the airline assesses the risk, determines the root cause, and develops a comprehensive fix;

  • Stage 4 – Written Report Review, where the FAA accepts, rejects, or recommends modification to the submitted report;

  • Stage 5 – Surveillance, the period after the comprehensive fix is accepted and implemented; and

  • Stage 6 – Inspector Signoff, where the overall process is accepted or rescinded by the FAA Inspector.

The VDRP offers a higher standard for continued operational safety, maintenance, and flight operations for an airline certificate holder. Occasionally, a self-disclosure by the certificate holder correlates to an opportunity for a voluntary self-disclosure from an employee, the license holder, who may have played a contributing role in the violation. Often, the license holder is unaware that an FAR violation occurred until notified. This scenario typically involves the company contacting a pilot or mechanic to make them aware of an FAR violation to allow them the opportunity to voluntarily submit safety-related information from their perspective using the Aviation Safety Action Program.

Should you have a question concerning a possible VDRP disclosure you can initially contact me or the appropriate compliance manager: Dan Hendershott in Maintenance, Rex Gunning in Flight, or Bob Greene in Ground Operations. Questions concerning ASAP can be addressed to myself or Holly McCammon, our ASAP administrator.

Our People
Congratulations to the following employees celebrating anniversaries with ABX in March:

  • Captain Donald Bodnar – 35 years;

  • Captains Fred Holsinger and Spence Meredith – 25 years;

  • Captains Alex Calder, Charles Miller, and Brian Rodebeck; and First Officer Mark Ficek – 20 years; and

  • Charter Station Administrator Rochell Kay-Apodaca – 5 years.

Thanks to all for your hard work and dedication!

Business & News
DHL is poised to announce the details of its $46 million expansion of the Express Americas Hub at the Cincinnati/Northern Kentucky International Airport. This will occur at a ceremony scheduled to be conducted mid-March. Part of the expansion is purported to include constructing a new consolidated crew facility and parking lot. DHL indicates the expansion project positions them well to better support international trade as well as future growth. We’ll keep you posted on the details as they are made available.

Mike Huckabee is taping his FOX News show 'Huckabee' at the air park this Saturday. Newt Gingrich, Mitt Romney, and Rick Santorum will be here as guests. The program will be aired later that night at 8 p.m. There will be no public audience as the set will be closed to air park employees and the public. However, it is possible that one or more of the candidates might make an appearance elsewhere around Wilmington that day.

That’s all for this week's INFOline. Thanks for all your work in keeping our company safe and successful.


John Starkovich's INFOline  |  February 16, 2012
Good afternoon. This is John Starkovich with the ABX INFOline for February 16, 2012.

Safety & Compliance
We are again reminding folks that falls were our number one cause of accidents/injuries. With the somewhat erratic weather we are having, it is easy to forget that icy and slick spots on the roads, driveways, sidewalks, and parking lots appear to come from nowhere. Please be careful and attentive. Leave yourself enough time that you do not have to rush; and if you should need assistance here at ILN, contact Security at ext. 62911. To report a hazard, please notify LGSTX Property & Facilities Maintenance at ext. 62082 or 62282.

Company News
ABX employees interested in seeing the information that ATSG is sharing with investors and analysts at the BB&T Capital Markets’ 27th Annual Transportations Services Conference being held today can find the slide presentation on the Internet as part of the SEC filings. ATSG also has an investors conference call scheduled for Tuesday, March 6, 2012 to review fourth quarter 2011 and fiscal year 2011 financial results. Employees also are encouraged to go to the ATSGInc.com web site as another way to keep informed of important dates and announcements.

We would like to take this opportunity to congratulate our ABX employees reaching an important milestone with us this month. Congratulations to Mark Spicer, our manager of I.S. for 25 years of service; at 20 years of service Field Supervisor Michael Green at Mather; also at 20 years of service are 767 captains Glenn Crawford and Mark Thom along with 767 first officers David Gardner, Pete Silverson, and Scott Farmer; and at 15 years of service, 767 first officer Tomoaki “Tommy” Sato. We thank and congratulate these employees for their service and contributions to ABX for these many years.

A reminder to everyone that we are experiencing unusually high usage of our internet connections during the first shift and the 2 to 4 a.m. time portals. Much of this is normal activity but streaming music has been determined to be contributing to these peak levels. Please keep in mind that streaming music can slow down our response time for business-related transactions even if it is going through a personal tablet or smart phone. Conserving band-width and complying with our Technology Use Policy is expected of all ABX employees. Your cooperation is expected and appreciated.

Our on-time service performance for DHL for the month of February is at 98.89%. The first quarter to date stands at 99.03%. DHL also congratulated ABX for its performance in January during a meeting yesterday.

Other News & Information
There have been some questions regarding the 747-300 that is sitting on the airport property. The aircraft is painted in Saudi Arabian Airlines livery and was being operated by Air Atlanta Icelandic. It is here for parts removal by MAP Asset Preservation and ultimately scrapping. The engines have already been removed and it will go the way of many of the old DC-9’s.

For those that are not already aware, the air park has entered into an agreement with the East Coast Timing Association (ECTA) for a series of dates in 2012 for land speed racing events. The association allows for car and motorcycles ranging from production models to exotic vehicles and purpose-built racers to test their speed. The ECTA has spent the last 16 years at the former Laurinburg/Maxton Army Airbase in Maxton, North Carolina and have signed with the Wilmington Air Park for the 2012 season. The dates are April 28, 29; June 2, 3; July 7, 8; and September 28, 29.

AMES has recently had some modification done on hangar building 1003 so it can now handle a 767. With space at a premium and the need to get work done on our aircraft inside during the winter season, the modification is welcome news.

The ABX Wellness Program and the Fitbit pedometers continue to make progress. As a reminder, for those who are participating in UnitedHealthcare's Health Rewards coaching program in lieu of the Fitbit program or just to improve your overall health, six weeks of participation are required, so you need to start the program no later than mid-February. Please use the recently updated myuhc.com web site. If you have any problem logging in or getting started on the coaching program, please contact Dawna Kennedy at ext. 62150. Also, keep in mind that in order to qualify for a reduction in your health care contribution, you must meet either meet the Fitbit requirements or the coaching program steps. I will continue to remind you of this as a 17% reduction in your health care contribution is significant. Even more important than the dollars that you will save are the benefits that you can get to your health and fitness. It is for your own good in almost every way.

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  |  February 2, 2012
Good Afternoon. This is John Starkovich with the ABX INFOline for February 2, 2012.

Safety & Compliance
Last month marked the first edition of the ABX SafetyLine. This Safety publication is another effort being taken by our safety professionals to keep you informed on various safety subjects and initiatives here at ABX. Much of it will focus on the flight side, but it will also be covering subjects of general interest for all of us. It is emailed and is also available via the company-networked computers on the ABXnet Safety page and also at myabx.com/flightweb (click on the Flight Safety button, log in, and click the ABX Air SafetyLine link). Issue 2 for the month of February is already out.

W-2 Distribution
ABX employees at ILN and CVG should have received their W-2s at work. They were mailed to outbased employees on January 30. If you have not received your W-2 by February 15, you should contact the ever helpful Rachel Bernard in Payroll by calling extension 62538 to request a replacement. Please do not call before February 15 as it allows time for the US Postal service to return undeliverable items to us, and we can then resend them to you at any revised addresses.

401k
On January 31, 2012, the Company made its 5% contribution under the Capital Accumulation Plan (CAP) (for non-pilots). This contribution is placed into your 401k account. As a reminder, this is the replacement program for the frozen Retirement Income Plan. Please use www.401k.com if you want to check on the contribution. The amount can be found under “Transaction History”, in the “Sources” tab, and is dated January 31, 2012. Employees have to be full time or part time status and must have worked 1,000 hours in 2011, and employed at ABX as of December 31, 2011. Should you have questions, please contact Dawna Kennedy in HR at extension 62150.

Service
Our on-time service performance for DHL during the 4th quarter stands at 98.52%. For the month of January, subject to verification with DHL, on-time performance looks to be over 99%.

Employee Safety Survey
At the request of senior management, the Safety Department will be conducting an employee survey directed to the pilot group. VP of Flight Bob Gray requested that the Safety department perform the survey because it has been some time since the last one was conducted and there have been many operational changes in the past several years. As ABX moves toward the Safety Management System this year, open and candid input from our employee groups regarding how they perceive our policies, programs and functional areas, is critical to being effective and compliant. Safety will be using the SurveyMonkey system to conduct the survey. It assures anonymity in completing the survey and will regulate that there is only one response per employee. Another survey is under development for the maintenance folks as well. The Safety department is looking for honest responses to each question and thanks you for your cooperation and participation.

Healthy Directions
The ABX Wellness Program and the new Fitbit pedometers continue to be a topic of conversation. The second order of Fitbits is scheduled to arrive tomorrow and will bring the total number of participants to just below 300. This is over 30% of the eligible population. As a reminder, for those who are participating in UnitedHealthcare Health Rewards coaching program, it requires 6 weeks of participation, so you need to start the program no later than mid-February. UHC has recently updated their myuhc.com website, so the directions that we provided in the initial package have changed. Please follow the updated version. If you have any problem logging in or getting started on the coaching program, please contact Dawna Kennedy at extension 62150. Also, keep in mind that in order to qualify for a reduction in your health care contribution, you must meet either meet the Fitbit requirements or the coaching program steps. Everyone is encouraged to participate for the sake of your own health and to save money on your health care expenses.

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


Tammy Voss' INFOline  |  January 19, 2012
Hello, this is Tammy Voss with the ABX Air INFOline for January 19, 2012. I hope everyone is doing well.

Safety & Compliance
So far this winter, we have been very lucky to have such mild weather conditions. As a precaution, we would like to review the Emergency Operations Policy. ABX Air will maintain normal operations whenever possible to meet our customers’ service commitments. All employees are expected to be at work on time during inclement weather when the company has not announced closure. When conditions warrant, ABX Air may announce Delayed Operations or Closure of Operations as detailed in the policy. When these plans are announced at ILN, they will be communicated via the ABX Newsline: (937) 382-5591, press #, then dial 66397 (6NEWS). Outbased locations will follow the procedures for notifying their personnel when delays or closures occur. In all cases, we want our employees to take the necessary steps to ensure they remain safe.

Our People
We have a number of anniversaries to celebrate this month. Capt. Chris Reimer is celebrating 25 years with ABX. Judy Branham, Capt. James McCauley Jr., and First Officer John Ziegler are celebrating 20 years of dedicated service. Mark Staddon is celebrating 10 years with ABX. Congratulations!

Performance
I am pleased to report that our on-time performance for December 2011 was 98.50%. Our 4th Quarter 2011 CMI performance was 98.52%. We encountered some very challenging issues during the 4th quarter and achieving this level of on-time performance day in and day out is a huge accomplishment. As soon as our 4th Quarter audited financial results are reviewed and approved, we will update you on the 4Q results of the ABX Employee Incentive plan.

2012 Expense Reporting Rates and Tax Limits
For 2012, the 401(k) deferral limit is $17,000, the 401(k) catch-up limit is $5,500 and the Social Security Wage Base is $110,100.

Effective January 16, 2012, the new expense reporting rates for non-crewmembers are:

Mileage: $0.555 per mile

Per diem

Non-taxable

Taxable

Total

Domestic

50.00

0.00

50.00

Non-Pacific rim

65.00

12.75

77.75 (includes Alaska and Hawaii)

Pacific rim

65.00

22.75

87.75

Company policies on the intranet have been updated to reflect the changes.

Wellness Update
Since the wellness program was announced in November, 239 employees have completed Health Risk Assessments and 276 employees have ordered Fitbit pedometers. Human Resources have had a lot of positive feedback on the program. Employees are closely monitoring their activity and are getting on the treadmill at night or walking around the block to reach the 5500 steps per day goal. All this activity can help reduce their insurance premiums as well as improve their overall health!

ABX Air featured in Delta TechOps 2012 Calendar
This year, Wilmington and Shanghai will share the distinguished honor of being featured in the 2012 Delta TechOps calendar highlighting cities around the world with close ties to the company. A photo of downtown Wilmington is featured on the November page, tucked between Moscow, Russia (October) and Seoul, Korea (December). A caption on the page recognizes ABX Air as the longest tenured customer of Delta TechOps.

Wilmington Air Park News
The CCPA has signed an agreement with the United State Air Force (USAF) to finalize a COA (Certificate of Authorization) that will allow the USAF to do research and development and fly SUAS (Small Unmanned Aerial Systems) from the Wilmington Air Park. This agreement begins Feb. 28, 2012 and runs through Feb. 27, 2013.

That is all the news we have for this week. Thank you for your time and all that you do for our company. John Starkovich will be back with an update to the INFOline on Feb 2, 2012.


Jeff Walling's INFOline  |  January 5, 2012
Welcome to the first ABX INFOline for 2012. Today is January 5th, and I am Jeff Walling, Manager of Human Resources.

Around the World in (less than) 80 Hours
Let me start the New Year by sharing the story of a recently completed around-the-world trip.

Our aircraft stationed in Japan, tail number 745, needed to return to ILN for its scheduled C-check in January. The authorized replacement aircraft, tail number 744, was in Europe serving our customers there. We needed to send a replacement aircraft to Europe and reposition 744 to Japan. And before 744 could leave for Japan it needed to be prepped, cleaned, and decaled. So how do you swap two airplanes between Europe and Japan? Obviously, ferrying empty airplanes half-way around the world can be very expensive and is best avoided. That’s when Eric Plas and his team went to work.

First Eric and his team arranged a shipment to Europe to send a replacement plane for the European operations. Then Eric arranged to carry a shipment from Poland back to CVG, and from there that shipment was trucked to its final destination in Canada. With 744 back at CVG it completed several domestic flights and was prepped and cleaned in LAX over the holiday weekend. A new decal for Japan Airlines was added next to the familiar ABX Air logo.

Finally, Eric and his team arranged a shipment from CVG to Muscat, Oman in the Middle East. After making this delivery, 744 departed Muscat and overflew the Indian subcontinent and China en route to Japan. The airplane arrived safely in Japan today and is now ready to resume our scheduled flights between Japan and China.

Meanwhile, aircraft 745 departed Japan for ILN via Anchorage, Alaska. This aircraft arrived at ILN has been inducted into the C-check line.

Thank you to everyone who helped make these repositioning trips possible. Special thanks to our operations people, including the flight crews, aircraft maintenance personnel, flight control, contingency, and scheduling; and to Eric and his team for their efforts. Also a special thank you to Stacia Garen for working around the clock as plans were reformatted on the run due to a work stoppage in Belgium and a government delay in Oman.

We successfully moved several revenue loads of freight while repositioning these aircraft. We’ve come a long way since our beginnings way back in 1980!

Flower Season Starts
In company news, we are getting ready to start the flower season in Miami. Valentine's Day is the biggest day of the year for fresh-cut flower sales in the U.S.

Have you every wondered how those fresh-cut roses show up in floral shops around the country in the dead of winter? The answer is air cargo, and ABX Air is a big part of moving flowers from the South American growers to Miami for final distribution to your local flower shop.

Our Boeing 767 aircraft with its ability to control the cargo deck temperature is ideal for moving high value and perishable floral shipments. The flower season is a great opportunity for our company to earn extra business. And it's just possible that the flowers you buy for your loved one this Valentine's Day were flown to the U.S. on an ABX airplane.

Global Flight Source
In other company news, our Flight Department received FAA approval to use a vendor for flight following services. Global Flight Source, previously the ABX Flight Control department, is providing this service for ABX. Global Flight Source offers a broad range of services to operators including complete route planning, dispatch release generation, weather analysis and briefings, and 24/7 flight following. Global Flight Source is staffed by FAA licensed dispatchers who have worldwide dispatching experience and who are qualified for ETOPS 120 and 180 flights. Jim O’Grady has been named the Managing Director of Global Flight Source and reports to Rich Corrado under Airborne Global Solutions. These changes were made to help grow our business by providing new services to the marketplace.

Healthy Directions Wellness Program
In Our People news, our new Wellness initiative, Healthy Directions, is off to a great start in 2012. We have 250 people signed up for the Fitbit pedometer program and we’re hearing lots of positive buzz from employees. If you are not signed up but are interested in joining the fun, please contact Dawna Kennedy in Human Resources at extension 62150 or via email at dawna.kennedy@abxair.com.

Thanks to everyone who completed the UnitedHealthcare online health risk assessment. If you completed the assessment by December 31, you’ve earned the company health insurance discount for the first quarter. You will see a discounted contribution starting on your January 13 paycheck. If you haven’t signed up for the Wellness program, visit www.myabx.com/benefits for details. By joining in, you can earn discounts on the company health insurance program staring the second quarter.

Accepting Applications for B-767 First Officers
For the first time in a great while, we are now accepting applications for Boeing 767 first officers. While we are not yet hiring new pilots, since we need to complete the process of going through the recall list of furloughed pilots, we wanted to start building a pool of qualified applicants for the day we can resuming hiring new employees. If you know anyone interested in applying for these positions, tell them to visit our website at www.abxair.com and click on the Careers section.

Winter Weather Safety Reminder
Finally, the New Year brings the wonder of the winter season here in the northern hemisphere. Let me take a moment to remind everyone, that if you’re aviating, driving, or just walking in the parking lot, please make sure you use your winter weather skills to the fullest. Winter weather is best enjoyed accident-free!

Well, that’s all I have for this week. Tammy Voss will be here with the next update on January 26. Until then take care and be safe!


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