INFOline 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.

Jeff Walling's INFOline  |  September 26, 2013
Hello, this is Jeff Walling, Director of Human Resources, with the ABX Air INFOline for Thursday, September 26.

Safety & Compliance
This week we are enrolling our most recently acquired 767-300 into our Flight Operations Quality Assurance (FOQA) program. As this program matures we are spending more time looking at trend data to find ways to notify pilots of approaches that may pose a greater risk of being unstabilized and look at the factors that make some approaches more difficult than others.

This type of analysis would not be possible without close cooperation of the FOQA Monitoring Team consisting of Safety, Flight, Engineering, and Airline Professional Association Local 1224 Safety Committee Gatekeepers, who spend several hours each month examining flight data to try to prevent future incidents or accidents. We also would like to remind our pilots that if you are concerned about a particular airport approach or procedure you can always contact our safety analyst or an APA gatekeeper to discuss.

The Commercial Aviation Safety Team (CAST) is a government and industry collaboration of major organizations sharing the common aviation safety mission of reducing commercial aviation accidents. The CAST Safety Portfolio published this past June describes 76 voluntary Safety Enhancements, and requests that operators evaluate these ‘Safety Enhancements’ relative to their own operation. Folks from Safety, Flight, Aircraft Maintenance, and Ground Operations will begin evaluating our status relative to the desired outputs of CAST Safety Enhancements in the near future.

Industry News
FedEx Corporation recently reported that it has further cut its air capacity to Asia as more and more consumers are selecting less expensive delivery options. Fedex announced that it was removing a second daily flight to Asia and will seek additional cost cutting measures. Lower priority international packages are being moved by lower cost alternatives including ocean shipping and passenger plane bellies according to a recent article in Bloomberg.

Wilmington Air Park News
At the Wilmington Air Park, construction continues on the new hangar, with the first steel I-beams being erected. The hangar will be leased by AMES--the maintenance, repair, and overhaul affiliate of ATSG--and is expected to open for business next spring.

Also at the Air Park this past Monday, Sinclair Community College hosted a news conference to announce a new partnership with the Wilmington Air Park and two aerospace companies in the Unmanned Aerial Systems (UAS) industry. Sinclair College holds a Certificate of Authorization to fly unmanned vehicles at the Air Park. The college is partnering with Florida-based Altavian to serve as the manufacturer’s national training partner; and with Woolpert, a leading geospatial mapping company located in Dayton, to provide their expertise to the college’s unmanned training and education portfolio. Sinclair College’s training and certification program is focused on training pilots and operators of unmanned aerial vehicles for commercial applications including agriculture and geographic data, disaster response, and search and rescue operations.

After the news conference, a live flying demonstration was conducted with two unmanned vehicles alongside one of the Air Park’s runways.

Employee News
As a reminder, flu shots will again be offered this year at the Wilmington Air Park on Wednesday, October 9 from 1 to 5 p.m. Vaccinations will be available at no charge for employees, spouses, and dependents age 14 and older who are covered under the Company-sponsored UnitedHealthcare insurance. For employees located at other locations or who cannot attend this event, flu shots are available at any pharmacy that participates in the UnitedHealthcare network, where permitted by state law. Check with your local pharmacy for availability.

I’m sure by now everyone has heard about implementation of the Patient Protection and Affordable Care Act, also known as "Obamacare." Beginning October 1, the government expects to open the health insurance exchanges where health insurance can be purchased directly from participating insurance companies. As part of the rollout, the Dept. of Labor requires employers across the country to send notices to their employees about the health insurance exchanges. You will soon be receiving your notice in the mail. As in past years, we expect to hold our health insurance open enrollment from November 1 through November 30. If you are interested in purchasing your health care through the government-sponsored health insurance exchanges instead of through your employer, you should know that the open enrollment period for health insurance exchanges runs through March 31 of next year, so you will have plenty of time in November to make a comparison of our plans and what’s available in the marketplace.

The first planning meetings for the annual Fall Charity Drive were held this week. We already have a head start on fund raising this year with $3,359 raised at the charity car show held in August at the Air Park. Our annual Fall Charity Drive supports the American Heart Association, the American Cancer Society, the United Way of Clinton County, and the Clinton County Community Action and Our Father’s Kitchen food pantries. Look for more information about the Fall Charity Drive in the coming weeks and how you can support these worthwhile charities.

Well that’s all I have for this week. John Starkovich will be back in two weeks with the next INFOline. Thanks for listening.

John Starkovich's INFOline  |  September 12, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for September 12, 2013.

Safety
The Summer/Fall 2013 edition of the joint ABX Air and IBT 1224 SafetyLine is out and covers a number of interesting topics including the increase in the number of laser incidents; flying a stabilized approach; runway incursions, which is the news very often these days; as well as other articles. An electronic version is available on the secure Flight Department web site; and we are in the process of placing hard copies in a three-ring binder at various locations, including outside of my office by the elevator and in the Flight Department here at ILN, in CVG at the NDO office, and in MIA in the crew area. I always learn something reading these articles and encourage you to read them. Knowledge really is power, and it helps us to do our jobs better and more effectively when we are well-informed. This is an excellent publication.

Compliance
This past Tuesday ABX Air conducted its first Calibration Meeting with the FAA’s East Michigan FSDO concerning our progress in implementing Level 2 of our Safety Management System. The objective of Level 2 is to correct known deficiencies in safety management practices and processes. The emphasis is on identifying hazards, analyzing their risks, and implementing controls to mitigate the risks to a lower or acceptable level. Inputs to the process include audit findings, ASAP and Aviation Safety Reports, Flight Operations Quality Assurance, and other employee reports or feedback. As a result of the meeting, we’ve targeted July of 2014 to exit Level 2. The Detailed Gap Analysis will be updated and formal processes developed for hazard identification and risk management. These processes and procedures will be included in a revised SMS Manual that each ABX employee can access.

Company News
Our on-time service performance for DHL for the month of September to-date, subject to verification, is 99.18%. Similarly, for the third quarter of 2013, we are at 98.77% on-time performance to-date, all subject to verification.

Flu shots will again be offered this year. The date set for offering flu shots at ILN is October 9. For employees with UnitedHealthcare (UHC) insurance, the cost will be covered by the plan. For employees at other locations, flu shots are available at participating UHC pharmacies (where permitted by state law).

You will be receiving a notice in the mail later this month about the new Patient Protection and Affordable Care Act Health Insurance Exchanges. This government-required notice will tell you about how you can purchase health insurance through the new government-run exchanges; what government subsidies may be available to you depending upon income and employer coverage; and where you can get more information about the new programs. The notices are scheduled to be mailed before October 1, the date the exchanges are scheduled to open. Be sure to look for this important document in your mail later this month.

As part of its effort to attract more tenants, continue to grow, and meet the needs of current tenants, the Clinton County Port Authority intends to select a licensed consulting engineering firm to provide planning, design, and construction administration services over the next five years at the Wilmington Air Park.

Commentary
Usually in the INFOline I would go to “other news” at this point. Instead, I want to tell you about a visit with an ABX Air customer this week that is important to share. We were talking about the pressure to raise prices due to modest wage increases, the rising costs of benefits, and the higher prices of crew/employee airline travel and hotel stays, as part of a broad discussion about renewing our current contract with them--those things that are typically raised in these discussions as ABX looks to remain profitable and the customer looks to keep a high level service at the lowest cost as well. I would say a pretty normal discussion.

This time, however, the customer indicated that he understood and recognized the pressure on costs. His response, however was that the marketplace was pushing back. His customers were not willing to take an increase in his prices and would likely look for alternatives. Instead, he indicated that as a supplier/vendor of services that ABX Air needed to keep its prices stable presumably through process improvements or other strategies. If we could not, then they (our customer) may have to look at alternatives just as its customers were considering alternative shipping options. Alternatives that may have not made sense before, now may make sense due to any combination of factors.

This is neither the time nor the place to go into all sorts of detail. But I will say this: it is a normal discussion to have with a customer. Our customer’s issues and problems become ours. Similarly, ABX Air is always looking for strategies to keep costs down. What struck me was that he was essentially advising that the marketplace was continuing to put pressure on the entire service supply chain. If we do not respond and adjust, we will lose out. It may be an obvious fact to many, but I wanted to share it with you so that you are as aware of it as I am. We all get busy as we focus on our day-to-day tasks and do so sometime at the expense of stepping back and making note of the much bigger picture around us and how we here at ABX fit into that full, competitive marketplace.

It also was another reminder to me that ABX Air, as much as it has changed and adjusted these last few years thanks in large part to your efforts, needs to continue to evolve and to adjust. The adage that if you are standing still then you are losing ground is as apt now as ever. I remain confident that ABX can successfully meet the challenges that the marketplace presents and ask that you look for even more ways to become more efficient. Our success depends upon it.

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

Jan Woolum's INFOline  |  August 29, 2013
Good morning, everyone. This is Jan Woolums with the INFOline for August 29, 2013.

Safety and Compliance
During the week 19-23 August, ABX Air underwent the International Airline Transport Association’s Operational Safety Audit. The audit was conducted by GHS Aviation Group and consisted of program and process analysis of nearly one thousand IATA Standards and Recommend Practices. There were five auditors, each having between thirty to forty years of airline experience. The categories of evaluation include Organization, Flight, Dispatch, Maintenance, Cargo, Ground Handling, and Security. IATA rules of protocol do not allow us to divulge the audit outcome until any and all observations or findings have been resolved with the audit agency and approved by IATA. That process is currently underway and should be completed within the next few weeks. Thanks to all who were involved in the preparation and execution of this very important audit.

Company News
Celebrating anniversaries in September with 35 years are Captain Gary Brown, Captain Borge Larsen, and Director of QA and Chief Inspector Dan Hendershott; First Officers Chris Conklin, Mark Shockley and Robert Houde have supported the company for 20 years; First Officers James Kight and Rodney Arnold have 15 years of service with ABX; and celebrating one year is Analyst and Compliance Coordinator Dean Weaver.

Retiring in December is Captain Don Bodnar. Don joined ABX in March of 1977. Prior to ABX Don flew for Midwest Airlines. Don, thank you for all your years of support. Enjoy your retirement.

Our on-time service performance for DHL with only two operations left is at 98.49%. Our quarterly on-time performance is 98.67%. It's important we continue to stay focused on service.

Tanya Woodford was a awarded a Letter of Recognition for spearheading the ATSG Charity Car Show that raised $3,300 for several local charities. This type of dedication and support from our employees only makes our community stronger. Thank you.

I would again like to remind our employees to check the new logowear store by clicking the link at myabx.com. There are several new styles and colors to choose from.

Other News and Information
National Payroll Week (September 2-6, 2013) celebrates the hard work by America's 156 million wage earners and the payroll professionals who pay them. Together, through the payroll withholding system, they contribute, collect, report and deposit approximately $1.78 trillion, or 70.5%, of the annual revenue of the U.S. Treasury.

While most of Ohio was dealing with temperatures in the high nineties, the CVG Operations was thinking winter. Steve Elkens, Director of Airport Affairs for DHL, held an internal kick-off meeting on winter ops. IDS (Deice Vender) announced they expect to have a good return on experienced deicers that are more then enough to staff a full night's operation.

ANA Holdings, parent company of the All Nippon Airways Co., has completed the purchase of Miami-based Pan Am International Flight Academy and Pan Am Holdings. Former owner American Capital sold Pan Am, which it has held in the portfolio since 2006, in a agreement reached last Friday, according to Air Transport World. ANA plans to expand Pan Am into Asia by providing training to other Asian airline partner firms and subsidiaries. With air travel expected to double with the next 30 years and much of the growth occurring in Asia, the company intends to capture opportunities and create an additional source of steady revenue for the airlines.

That's all the new for this week. Be safe and have an enjoyable Labor Day. John Starkovich will be back with more news updates in two weeks.

John Starkovich's INFOline  |  August 15, 2013
Good afternoon everyone. This is John Starkovich with the ABX INFOline for August 15, 2013.

Safety
Mid-August is back-to-school time for most of the communities here in Ohio. Please take the time to be attentive and patient as you drive around and behind school buses and the students as they return to classes. Accidents can happen very quickly so please be careful and vigilant. We want everyone to arrive home safely and healthy at the end of the day.

Compliance
The International Air Transport Association Operational Safety (IOSA) audit that we have spoken about, and been preparing for, will take place next week. The GHS Aviation Group will be here all week with a full schedule reviewing Flight, Maintenance, Ground Handling, Security, Cargo, and Dispatch functions. The audit is designed to assess operational management and control systems of an airline using nearly 1,000 IOSA Standards and Recommended Practices in the evaluation process. Please join me in welcoming the group and demonstrating to them how ABX Air endeavors, through each of you, to meet all of our regulatory requirements and best practices.

Company News
Our on-time service performance for DHL for the month of August, subject to verification, is currently 98.18%. Similarly, for the third quarter of 2013, we are at 98.64% on-time performance to date, all subject to verification. Just a reminder that we all need to keep our eye on the ball. We had a couple of noticeable service misses this month that caused issues for our largest customer and its customers. As Terry Scherz often reminds me, we are only as good as our last departure, so please let’s continue the effort to make them all “on-time” departures. As information, we achieved 98.85% performance for the second quarter.

Friday, August 16, 2013 marks the 10th anniversary of ATSG becoming a publicly held company. Time has passed quickly. Joe Hete has issued a brief letter to employees marking the event along with a commemorative lapel pin that you should look to receive.

The anniversaries for the month of July were inadvertently missed, so I wanted to go back and congratulate and thank those ABX Air employees that celebrated an important milestone with the company. Celebrating 25 years were Capt. Dave McGinnis and Capt. Ryan Emmert; at 20 Years, First Officers Mike Carlson, Thomas Head and Tim Jewell; at 15 Years Ed Popovich and First Officer Douglas Turner; and at 1 Year, Jeremy Cordrey. My thanks and appreciation to all of the above employees for all of their contributions to ABX Air.

The Flight Department recently signed an agreement with the University of Cincinnati which provides for the ABX Air Part 142 Flight School to train students as a part of UC's Aviation Program. This training will be done to FAA standards, and will include Ground School, Fixed Base Simulator Training, and Full Motion Simulator Training. Upon completion, the student will be tested to meet and receive a DC-9 type rating to ATP standards. This is a great opportunity for UC Aviation students and a good revenue opportunity for our Part 142 Flight School.

Last weekend we had the charity car show here in Wilmington sponsored by all of the ATSG companies. There were 71 cars entered, and the winning entry was a 1967 Dodge Charger. Over $3,300 was raised on behalf of the United Way of Clinton County, the American Heart Association, the American Cancer Society and two local food banks: Our Father’s Kitchen/Sugar Tree Ministries and Clinton County Community Action. Thanks and appreciation to everyone that donated their time, talent, and resources to this event. I specifically want to thank Tanya Woodford for spearheading this effort. It was a great event.

Other News & Information
DHL has received significant external recognition on all continents in 2013 across a broad range of functional disciplines. The latest recognition, the Yahoo! Emotive Brand Award in Hong Kong, brings the total number of external honors won by DHL Express since January 2013 to 163 in more than 48 markets. Of these, 25 awards have been won for Human Resources related achievements. Sixty-four have been won in the field of Customer Service. Eleven awards have been given in recognition of the company’s commitment to corporate responsibility.

“I am incredibly proud of the honors we have received in recent years, because it indicates that the hard work that our employees put in every day to achieve performance excellence is being recognized in their markets,” said Ken Allen, CEO, DHL Express. “We hope that it communicates to customers in every other market worldwide that their express shipments, wherever they are sent, will be handled by a global network of talented, dedicated international specialists.” In addition to the awards in specific functions, DHL Express has also been recognized as “Express Company of the Year” in at least eight countries in 2013. (Information courtesy of a DHL Press release.)

In an article in Cargo Facts, TNT Express reported a second-quarter net loss of €304 million, as revenues declined 3.1% to €1.70 billion. This is down from a €39 million profit in the second quarter of 2012. TNT also reported an operating loss of €280 million in the quarter, compared to operating income of €94 million in 2Q12. Looking ahead, the company said it foresaw “challenging trading conditions for the rest of 2013, with continued negative development of operating results for Europe Main and Europe Other & Americas combined, but that it expected its Asia Middle East & Africa operations to perform better than in 2012.”

Also in Cargo Facts, Atlas Air Worldwide Holdings (AAWW) reported second-quarter net income down 35.0% year-over-year to $20.1 million, as total revenues declined 5.0% to $403.6 million. Operating income for the quarter was down 13.6% to $48.5 million. Block hours in the company’s core ACMI segments were up 10.2%, and revenue per block hour rose 2.9%, leading to an overall 13.4% jump in revenue to $182 million. ACMI contribution to operating revenue was up 35.0% to $55 million. Block hours in their Commercial Charter segment were up 10.3%, but due to “soft second-quarter market conditions,” revenue per block hour dropped 11.8%. AAWW CEO William Flynn said the company expected a relatively solid peak season this year, leading to strong growth in both ACMI and Commercial Charter segments.

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  |  August 1, 2013
Good afternoon everyone. This is Bob Gray with the ABX INFOline for August 1, 2013.

Safety
OSHA’s Hazardous Communication Standard (HCS) is based upon the concept that employees have both a need and a right to know the chemical hazards they may be exposed to under normal conditions of use or in a foreseeable emergency. “Use” includes packaging, handling, transferring, or reacting to a chemical.

Employees who work around these hazardous chemicals must be trained in:
  - HazCom labels and workplace labeling,
  - Safety Data Sheets (SDSs), and where they can be found,
  - The location of the written program and the chemical inventory, and
  - An explanation of the workplace HazCom training program.

The HCS is now aligned with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). Major changes include:
  - Hazard classification: Provides specific criteria for classification of health and physical hazards.
  - Labels: Requires a harmonized signal word, pictogram, hazard and precautionary statement(s) for each hazard class and category.
  - Safety Data Sheets: Must have a specified 16-section format.

Employers are required to train workers by December 1, 2013 on the new labels, elements, and safety data sheets format to facilitate recognition and understanding. Affected employees will be trained through a PowerPoint presentation familiarizing them with the upcoming changes.

Compliance
This week, in the latest of an almost continuous serious of audits and reviews, ABX successfully completed the annual audit of its TSA approved Full All-Cargo Aircraft Operator Standard Security Program (FACAOSSP), as conducted by inspectors from the TSA's Washington DC headquarters and Cincinnati field office. During their audit the inspectors examined the policies, procedures and measures, used by ABX and our contractors, for ensuring the security of ABX-carried cargo and ABX-operated aircraft. The inspectors found ABX to be in full compliance with the TSA’s Security Program. Congratulations to all of you who are involved in administering the ABX Security Program on this success.

In 2013 the ABX Air Safety and Environmental Group has strived to improve our communication through the use of training modules and process manual updates. The Outbased Waste Management Manual has recently been added to the ABX Air Intranet and AMES MRONET web sites. It was the result of working together with ABX Air, AMES, and LGSTX Services personnel to achieve a program that responded to Outbased Aircraft and Ground Equipment Maintenance needs in maintaining ATSG’s standard of excellence in Environmental Compliance. The Outbased Waste Management Manual provides a detailed plan on how to setup, dispose, manage, and maintain recordkeeping for wastes that are generated at an outbased maintenance facility. This manual can be found at the following internal web site locations: http://abxnet/safetynet/ and http://mronet/maintenance-qa/AMES-Policy-Manuals.cfm. If you have any questions or comments about the Outbased Waste Management Manual, please contact you supervisor or a member of the Safety and Environmental staff. Your efforts to maintain safety and compliance in all that you do for the ATSG family of companies are greatly appreciated.

Company News
Every year our company holds a fall charity drive to benefit the American Heart Association, American Cancer Society, local United Way, and local food pantries. This year we're adding something new by hosting a charity car show on Saturday, August 10, at the former Employee Welcome Center parking lot at ILN. The event is free and open to the public, so bring your family and enjoy the music, raffles and door prizes, activities for the kids, and plenty of food for sale. The car show is open to all makes, models and years. The entry fee is $10. The top 25 cars will receive awards, and the first 50 entrants will receive dash plaques. (The rain-date for the event is the following day, August 11.)

All this fun doesn't happen without some work. The organizing committee still needs volunteers to help park cars, sell raffle tickets, set up and tear down the event, and donate baked goods or raffle items. If you can help out or have questions, contact Tanya Woodford at extension 62318.

Celebrating Anniversaries with the Company this month include Capt. Kirt Lewis with 35 years; Manager of Aircraft Records Cathy Earley with 30 years; Crew Scheduler Cathie Spilker and Capt. Pete Zink with 25 years; and First Officer John Taylor with 15 years.

The ATSG family lost a fellow employee in a tragic accident at the Wilmington Air Park this week. We mourn the loss of LGSTX employee David Kent Roades, who passed away on Thursday, August 1. Our deepest sympathies go out to his family and co-workers.

John Starkovich's INFOline  |  July 18, 2013
Good afternoon everyone. This is John Starkovich with the ABX INFOline for July 18, 2013.

Safety
The Spring/Summer edition of DHL’s Safety Digest has just been published and is being distributed to our crewmembers, mechanics, and posted to the ABX web site. This magazine is designed to share information between the widely differing airlines within the DHL global network with the aim of sharing experiences from all over the globe that impact safety. DHL limited, DHL Aviation Bahrain, DHL Global, DHL Americas, ABX Air, European Air Transport, Blue Dart, and Air Contactors safety departments all participate in submitting articles. Please take time to read this important safety publication and realize the importance of ABX being part of the DHL global team. The ABX submission outlines Flight Analysis as part of our Flight Operations Quality Assurance Program and is both interesting and informative.

Compliance
We’ve just completed the series of monthly safety and compliance meetings designed to assist our organization in maintaining a safe and compliant operation. These include: an FAA Interface meeting with Flight, Maintenance, Ground Operations and Safety; the ABX/APA Safety Committee; the Fatigue Focus Committee; the Flight Operations Quality Assurance Monitoring Team; and the Aviation Safety Action Program Event Review Committee. The mission of the Safety and Compliance Department is to support a safety-centered culture at ABX and assist the operational divisions in the proactive management of human error. While facilitated by our Safety Department, the relevant interfaces in these meetings occur between Flight, Maintenance and Engineering, Ground Operations, the FAA, and APA Safety Committee representatives. Thanks to all who participate in these meetings in support of safety programs and our Safety Management System implementation.

Company News
Our on-time service performance for DHL for the month of July and the start of the 3rd quarter, subject to verification, is 98.80%. Similarly, for the second quarter of 2013, we ended at 98.85% on-time performance to date, all subject to verification.

The Air Park is rebadging all ABX Air employees based in ILN. If you have not already received either a new orange or gray badge colored Wilmington Air Park badge, you should immediately take the appropriate steps to do so.

You will recall that not long ago, the Wilmington Air Park was filming a video for promotional use regarding the air park facilities. It is finished and posted on the Wilmington Air Park web site. Due to bandwidth restrictions, YouTube is blocked on the company network, but you can still watch the video at home or on your personal mobile devices, if you would like, subject of course to applicable data charges if any.

Congratulations to Professional Loadmaster Miguel Castellanos. He was presented with the ABX Air Silver Wings of Excellence award for the actions he took on a flight from Bogota, Columbia to MIA on June 22. Due to an unexpected closure of Kingston airspace, the flight was diverted to Cancun, Mexico for fuel. Michael took the initiative to coordinate the ground servicing of the aircraft so the flight could quickly complete the trip for delivery of a load of perishable flowers. On behalf of ABX Air and our customer, we thank Mike for his dedication and “can do” approach. Congratulations.

Other News & Information
Trade publication Cargo Facts Update reported in its July 19 edition that UPS has lowered its guidance for the second quarter and full year. While it still expected its full-year net profit to be up between 3% and 7% over 2012, this is down from its earlier estimate of 6% to 12%. Explaining the revised guidance, UPS said, “Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing US industrial economy drove revenue and operating below expectations.”

A Reuters on-line article on July 14 by Alistair Barr recently commented on retailers with the tagline: “new e-commerce strategies threaten UPS, FedEx.” The article reported that “major US retailers are experimenting with new e-commerce strategies that could dent demand for package delivery services, particularly demand for shipments over long distances, according to analysts and industry executives.” The article pointed out that Amazon is building its distribution centers closer to customers to save millions of dollars in shipping costs and is also increasingly using its own delivery trucks. Other major retailers like Wal-Mart, Best Buy, and Gap are shipping more on-line orders from stores close to shoppers rather than from warehouses hundreds of miles away.

Deutsche Post DHL issued a press release announcing it is adding 20,000 DHL parcel shops in Germany. The press release indicated that the it hopes to complete the expansion by the end of 2014. The shops will be located primarily in Germany’s major metropolitan areas and will mean that DP-DHL will have more than 50,000 parcel drop-off points across Germany. “We have never transported as many parcels in our company’s entire history as we did last year, and the growth is just continuing in 2013,” says Frank Appel, CEO of Deutsche Post DHL. “By expanding our network of DHL parcel shops, we are continuing to systematically focus on the needs of consumers in Germany, becoming even more customer centric and laying the foundation for even more online retailing in Germany.”

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

Terry Scherz' INFOline  |  July 4, 2013
Good afternoon, everyone. This is Terry Scherz with the ABX INFOline for July 4, 2013.

Safety & Compliance
We recently communicated that we successfully exited Level I of the FAA Safety Management System (SMS) program. The next steps as we enter Level II are to correct any deficiencies we may perceive in our safety management processes. We will review our Aviation Safety Action Plan (ASAP) reports, Continuing Analysis and Surveillance System data, Flight Operations Quality Assurance (FOQA) information, Internal Audit and Evaluation Program results and other safety reports.

While ABX has already implemented all of these "Best in Industry" voluntary programs, they still function mostly at a reactive level.

The performance requirements to eventually exit Level II include the development of processes and procedures for operating SMS to the level of proactive analysis, which will occur by applying safety risk management principles to our existing programs.

Our Compliance Managers in our Safety, Flight, Maintenance, and Ground Operations departments will be very busy this month conducting internal audits using the IOSA standards manuals and associated checklists. These checklists cover our Organization and Management systems, Flight Operations, Aircraft Maintenance and Engineering, Ground Handling and Cargo Operations, and Security Management.

These checklists consist of IATA operational safety audit standards or best practices. Conformity with these specifications can be validated only if documented and implemented by our auditors and certified by our SMS-accountable executive, the President of ABX, John Starkovich. These checklists will then be verified by an IATA-approved independent audit agency in August.

For those of you who may not be familiar with the acroynm's IATA and IOSA, IATA stands for International Air Transport Association and IOSA stands for IATA Operational Safety Audit. A primary objective of this organization and audit program is to provide a high degree of operational safety control standards for airlines throughout the world. ABX Air, being a international airline, is IOSA certified and must meet these high standards.

Since I have been talking about acronyms you may not have heard this one yet but probably will in the months to come: FANS, which stands for Future Air Navigation System. With the growth of aviation the airspace has become more congested. Most everyone wants to fly in the same airspace because it is the most efficient way to get from point A to point B. This preferred routing saves airlines millions of dollars by reducing flying time and fuel cost, but you can only safely put so many aircraft in the same space at the same time. With significant advances in technology, both with ground-based navigation systems and on-board aircraft avionics, more aircraft can fly more efficiently and safely in the same space.

In order to take advantage of FANS, many airlines will need to update certain equipment presently installed on their aircraft, along with implementing new operational policies, procedures, and training. ABX Air is no exception. We have begun an active project to address all aspects of FANS.

Company News
The Wilmington Air Park access badges of most ABX Air employees will expire on July 31, 2013. The Wilmington Air Park has begun the rebadging of ABX employees and will continue through July 12. Each employee who requires a replacement badge will need to complete a badge application form and also complete the required on-line training. You must have the signature of an authorized representative from ABX. This will verify to the Wilmington Air Park that you are an ABX employee and authorized to have the Air Park badge. Authorized representatives are Tina Reed, Joyce Dean, and Kathy Johnson from our HR department. The badging office will be open Monday through Friday, 7 a.m. to 4 p.m. If you have any questions, please contact Tina, Joyce, or Kathy.

AMES reports the new hangar is on schedule for completion next spring. Expect to see some red steel structure going up within the next couple weeks.

Our on-time service performance for DHL for the month of June is 98.66%, and we completed the second quarter at 98.86%. As always these numbers are subject to final verification. This was another very good quarter for our largest customer, which would not have been possible without all of your efforts. Thank you very much!

That is all I have for this week's INFOline. Have a happy holiday weekend and be safe.

John Starkovich's INFOline  |  June 20, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for June 20, 2013.

Safety
The June 2013 Edition of the DHL Air Safety Brief by DHL Safety Manager Shayne Broad out of East Midlands has been issued. It will replace the previous edition under the Safety Dept. tab of ABXNet. Plans are also in process to place it on the Flight Web under the Safety tab there.

Compliance
The ABX IOSA audit scheduled for August 19-23, 2013 is quickly approaching. The GHS Aviation Group will be performing the audit and has sent us some of the current IOSA checklists and references. They can be accessed on the SMS Quickplace site. GHS has also forwarded to us a copy of the newly released IOSA Standards Manual (ISM) 7th edition that was placed on the IATA website last month and goes into effect September 1, 2013. This update has incorporated the Safety Management System (SMS) which you recall that ABX has started to implement and must be active by September 1, 2016.

Company News
Our on-time service performance for DHL for the month to date for June, subject to verification, is 98.77%. Similarly, for the second quarter of 2013, we are at 98.91% on time performance to date, all subject to verification.

On Wednesday afternoon, June 19, UHC’s Diabetes Prevention Tour was here in ILN from 1 to 4 p.m. Medical professionals screened 93 employees for pre-diabetes using a simple A1c blood test. So, the next step are voluntary educational sessions for those employees that were tested at the pre-diabetes level. We will let people know the time and place of such sessions as well as a general summary of the overall testing results in a future INFOline.

On Thursday, June 13, DHL held an Open House and provided tours of the new CVG Crew Facility and the expansion of the sort facility. Joe Hete, Quint Turner, and Rich Corrado represented ATSG. ABX was represented by Tammy Voss, Bob Gray, Terry Scherz, and Jan Woolums. DHL events have always been well done but my impression was this one stood out as one of the best ever. A highlight of the event for me was when Capt. Bob Boja and First Officer Mike Donaghey did a flyover in a DHL painted B767 aircraft and then landed for the delivery of the scissors for the ribbon cutting ceremony. Dr. Frank Appel, CEO of Deutsche Post DHL, gave a short speech and then at the reception spent time with the flight crew for picture taking. My congratulations to DHL and compliments to Travis Cobb, Mike Parra, and Red Alexander and all of the DHL folks for all of the hard work and for an enjoyable and first class event. The facilities are impressive and the nicest that I have ever seen. ABX appreciates the DHL business and our relationship with DHL. Many thanks.

Other News & Information
In a column that appeared in the Wilmington News Journal on June 19, Kevin Carver, Executive Director of the Clinton County Port Authority, made some observations including that "Wilmington Air Park is becoming known as a base for UAS [unmanned aircraft systems] test flying." He noted that: "If you've seen the [Air Force Research Lab] team flying its small aircraft here, you might have mistaken it for a radio-control model aircraft club. The aircraft they fly aren't much different from hobby-store model planes, but these aircraft are the vehicles that carry the sophisticated UAS technology." Additionally, he wrote: "The Clinton County Port Authority ... has signed agreements with Sinclair Community College in Dayton to fly UAS at Wilmington as part of the UAS workforce-training program the college is developing. We also signed an agreement with the Ohio National Guard to allow it to do UAS test flying for the Army. And we're working on an agreement with the Ohio Department of Transportation to propose a federal UAS air corridor that would link Wilmington Air Park with military airspace zones a few miles to the southeast...."

The June 7th Edition of CargoFacts Update had a brief that reported the International Air Transport Association raised its 2013 profit forecast for the airline industry by almost 20% from US $10.6 billion to $12.7 billion. IATA pointed to a variety of factors to explain the increase, but cargo was not among them. In IATA’s words: “The cargo business continues to suffer the brunt of the impact of the weak outlook in developed economies. Freight volumes are expected to be basically stagnant at 52.1 million tonnes. Effectively, there has been no significant growth since 2010 when freight volumes were 50.7 million tonnes. After a 6.3% fall in yields in 2012, we expect a further contraction of 2.0% in 2013 as capacity conditions remain much more challenging than in passenger markets.”

In a recent press release issued by DHL as part of CEO Frank Appel accepting an award for his efforts in promoting transatlantic business relations, it was noted that the US market will play an important role in the continued implementation of the Group’s global growth strategy. Dr. Appel was quoted: “The United States is responsible for a large share of global trade. For this reason, it is a central link in the global network of Deutsche Post DHL. In 2012, we generated double-digit growth in our US revenues. We produce more than 10% of our consolidated revenues there. Given the country’s economic strength, our leading market position and targeted growth initiatives in all DHL divisions, we see tremendous potential for successfully growing our company in the US market.”

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  |  June 6, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for June 6, 2013.

Safety
During the month of April, the Safety folks are looking at two injuries: one was a fractured finger by a maintenance employee and one was a trip and fall by an administration employee. For the first 4 months of 2013, we are at a 2.5 Total Reportable Incident Rate as compared to 2.1 for 2012. This is the wrong direction, folks, and we must look to improve as we proceed through 2013. History shows that the slip, trip and fall incidents are the most frequently reported accidents. Please take the time to be attentive to your surroundings, weather and general conditions as you walk in from the parking lot and navigate throughout the work day here in the building and on the airport property. Also, if you see an item of concern that could cause an injury, please kindly take the time to correct it or report it to your supervisor or a member of the safety team. We are all responsible for our own safety and our workplace.

Compliance
The Safety and Environmental Group, with the assistance of the Information Systems department, has placed the emergency contact numbers for all maintenance outbased locations on the Safety web site, along with updated forms for incident investigation reports and investigation checklists. An outbase waste manual is being developed to ensure compliance with storage, handling and disposal requirements. Reports also were submitted to the Ohio EPA for regulatory storm water permits for the Port Authority.

Company News
Our on-time service performance for DHL for the month of June, subject to verification, is at 99.46 percent so far. Similarly, for the second quarter of 2013, we are at 98.99 percent on-time performance to date, all subject to verification.

Congratulations to the following employees that have reached some very impressive years of company service levels: my thanks and appreciation to Simulator Tech Chris Custis for 30 years of service; for 20 years of service to Manager of Ground Training Bob Greene, and to flight crewmembers John Weissler, Ed Bonci, Steve Page and Steve Bethel also for 20 years of service.

On Wednesday afternoon, June 19, UnitedHealthcare’s Diabetes Prevention Tour will be here at ILN from 1 to 4 p.m. Medical professionals will be screening for pre-diabetes using a simple A1c blood test (finger prick). There is no cost to employees for this screening but you must pre-register by calling 1-888-926-6099 ext 326. This event is open only to currently employees covered by the company medical benefits and does not cover spouses or dependents. One in four Americans have pre-diabetes and do not know that they are at risk. Every year 10 percent of pre-diabetes cases will turn into diabetes. Pre-diabetes is reversible; diabetes is forever. If you sign up and get tested, you will get a free water bottle coozie (while supplies last) and be registered to win a free Fitbit Zip. Time slots are limited so call today.

NextGen is the movement to the next generation of aviation, which shifts from relying upon dated ground based radar systems to modern satellite technology in controlling air traffic movements. This shift to smarter, satellite-based and digital technologies and new procedures is expected to combine to make air travel more convenient, efficient, predictable and environmentally friendly. As demand for our nation’s increasingly congested airspace continues to grow, NextGen improvements are enabling the FAA to guide and track aircraft more precisely on more direct routes and its efficiency enhances safety, reduces delays, saves fuel, and reduces aircraft exhaust emissions. NextGen is also vital to preserving aviation’s significant contributions to our national economy. The FAA, in cooperation with RTCA, Inc., has formed a NextGen Advisory Committee (NAC) made up of representatives from around the world, including the airline industry, aircraft manufacturers, aircraft component manufacturers, labor, general and business aviation, ATC, and regulators from within the US, and from Europe. It was established by the FAA to provide a venue where the FAA can solicit a consensus-based set of recommendations on issues that are critical to the successful implementation of NextGen. Reporting to the NAC are numerous working groups that are concentrating on specific subject areas and developing recommendations to the NAC for approval. These subject areas include Airspace and Procedures, Business Case Analysis and Performance Metrics, Standards for Air Traffic Services Communications Services, and several others. Once reviewed and approved by the NAC, those recommendations are forwarded to the FAA for their review. To date, there have been over 25 recommendations accepted by the FAA and put into the plan for implementation. The ultimate goal of NextGen, and the NAC is to assure a smooth transition into the future air transportation systems, with advanced understanding and coordination between the FAA, the users of that system, and our partners in air navigation around the world. Bob Gray, our VP of Flight Ops, represents ABX on the NAC. While there is concern that the current and anticipated federal budget problems may somewhat slow the progress of this endeavor, there is a commitment from the FAA and Congress to provide the continued support necessary to meet the future demands of air traffic.

Other News & Information
Last week Deutsche Post /DHL held its annual meeting in Germany. As a result of that meeting Prof. Wulf von Schimmelmann was elected as Chairman of the Supervisory Board of Deutsche Post AG. A dividend of EUR 0.70 per share also was declared for 2012 financial results. CEO Frank Appel confirmed the targets for 2013 as well as the company’s mid-term outlook and said “We remain on track.” He reiterated the central goals: “In addition to developing innovative solutions to further simplify customer services, the fostering of global trade through the continuous expansion of the company’s network and the assumption of corporate responsibility remained the primary focal points of the Group.” Appel said: “Effective, efficient logistics plays a fundamental role in the competitiveness of companies, markets and societies. As the world’s leading postal and logistics group, we assume this responsibility and consider it an integral component to our business approach. Within this context, the Group’s commitment to the environment plays a key role.”

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  |  May 23, 2013
Good afternoon everyone. This is John Starkovich with the ABX Info-line for May 23, 2013.

Safety
Safety is a Core Value at ABX. Each individual ABX employee is reviewed on this core value as part of our formal Performance Appraisal Process. With the implementation of our Safety Management System, that rating process will be further refined and incorporated into the appraisal process. Updated performance appraisal forms are undergoing their final management review and will be unveiled for the 2013 employee performance appraisal process, which will begin soon.

Compliance
One of the many efforts to help to ensure compliance is the Monthly ABX/APA Safety Committee Meeting. This monthly meeting stems from the ABX Internal Audit and Evaluation Program. The Director of Safety is tasked under the IAEP to conduct a Monthly Safety Meeting where department heads, compliance managers, along with a representative of APA 1224 can meet to discuss the status of submitted Safety Reports, significant audit findings and other pertinent safety issues. Minutes are published for each meeting and posted on the Safety Server and the Safety Management System Quickplace. For more information about this meeting, please contact the Director of Safety, Steve Janasov.

Company News
Our on-time service performance for DHL for the month of May, subject to verification, is at 98.67%. Similarly, for the second quarter of 2013, we are at 98.84% on-time performance to date, all subject to verification.

By now everyone should have received their new insurance card from UnitedHealthcare. The new cards were issued because beginning June 1, 2013, UnitedHealthcare’s Optum Rx is replacing Medco as the pharmacy benefit manager. While this change does not affect the current coverage levels, it will change certain administrative processes and the manner in which eligibility and claims are processed by your pharmacy.

On June 19, UnitedHealthcare’s Diabetes Prevention Tour will stop at the Wilmington Air Park. Employees only (no dependants) covered by UnitedHealthcare insurance will be able to be screened for diabetes and learn about prevention. The screening is a laboratory grade finger stick A1c test which measures your average blood glucose (sugar) over the last 2 to 3 months. You’ll be able to speak with a health care professional and receive a referral if necessary. As many as 1 in 3 Americans are diabetic or pre-diabetic. Treatment for people with these conditions can cost as much as nine (9) times as someone who does not have these conditions. Diabetes can significantly shorten an individual’s life span. The good news is this disease can be prevented, or if you have it, the disease can be effectively managed. The key is to get screened. Look for more details about this important event soon.

Precision Conversions received Supplemental Type Certification from the FAA for its 757-200 Passenger-to-Combi conversion program. This puts our sister company, ATI, another step closer to replacement of the DC-8 combis with the 757s. Congratulations.

Other News & Information
DP-DHL announced its first quarter financial results for 2013. Among other items, it reported:

• Consolidated revenues up slightly to $13.4 billion euros
• DHL Express Division reported operating income up 9.5% to $254 million euros
• EBIT expected to increase throughout 2013 to between 2.7 to 2.95 billion euros

John Starkovich's INFOline  |  May 9, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for May 9, 2013.

Safety
Our FOQA (Flight Operations Quality Assurance) program data vendor, Flight Data Services, has rolled out a change in the software that is used to validate our data. ABX Safety Analyst, Dean Weaver, has been working with them, our Gatekeepers and our Director of Operations to create updated Aircraft Specifications that will take advantage of the new systems capabilities. We also are now using Achieved flight Data which will provide critical information concerning aircraft performance that will increase the reliability of our data and improve our overall FOQA program.

Compliance
Our biennial DOD Audit will be postponed due to on-going federal budget cuts. We are still scheduling an on-board DOD Audit flight audit within the next few weeks. We have also selected GHS as our auditor for the biennial International Airline Transport Association, Operational Safety Audit. The audit is scheduled for August and we will soon begin running the entire IOSA Audit Checklist as part of our Internal Audit and Evaluation Program.

Company News
Our on-time service performance for DHL for the month of May, subject to verification, is at 98.52%. Similarly, for the second quarter of 2013, we are at 98.87 % on time performance to date, all subject to verification.

The ATSG annual share-holders meeting will be held tomorrow May 10, 2013 at 11:00 am and will be held at the Roberts Centre on I-71. ABX employees are invited to attend the event.

On May 8, 2013, Air Transport Services Group, Inc. reported consolidated financial results for the quarter ended March 31, 2013. For the first quarter of 2013, compared with first quarter 2012:

• Revenues were $143.3 million, a decrease of 1.5%.

• Total operating expenses were $126.9 million, down 3.7%, including a $3.8 million reduction in salaries, wages and benefits expense due in large part to the merger of Air Transport International and Capital Cargo International Airlines in March 2013.

• Pre-tax income was $13.6 million, an increase of 26.5%.

• Net earnings from continuing operations increased 27.6% to $8.5 million, or $0.13 per fully diluted share.

• First-quarter Adjusted EBITDA was $37.3 million, a 9.6% increase from $34.1 million in the same period of the prior year.

Another reminder that beginning June 1, 2013, the pharmacy benefit manager will change from Medco to United Health Care’s Optum Rx. While this change does not affect the current coverage levels, it will change certain administrative processes and the manner in which eligibility and claims are processed by your pharmacy. Your new insurance cards will be issued in late May.

Other News & Information
In an April Cargo Facts Update, there was an article on the concern in the air cargo industry about a modal shift of air freight to ocean in the last decade. The article referenced a presentation by Boeing’s Regional Director of Cargo Marketing Jim Edgar saying the concern was unfounded. Using data from the US Dept. of Commerce, he indicated that the percentage being shipped by air of the top 20 items shipped via the trans-Pacific lane, as measured by weight, has remained almost constant. With respect to whether “low to no growth” is the new normal, the article indicated that not much change should be expected for 2013 but there will likely be a turnaround in 2014.

DP-DHL recently released its Corporate Responsibility report which includes an update of its GoGreen initiative. During 2012, DHL improved its carbon efficiency by an additional two index points. In total, they have seen a 16% improvement in their carbon efficiency since 2008. This represents over half of the of the target reduction of 30% CO2-efficiency improvement by 2020 for their own operations and those of its transportation subcontractors, compared to 2007.

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

Tammy Voss's INFOline  |  April 11, 2013
Hello, this is Tammy Voss with the ABX Air INFOline for April 11, 2013. I hope everyone is doing well.

Safety & Compliance
Selected ABX officials and compliance managers will be meeting with representatives from AFS-900 (the National Flight Standards Field Office) and our Certificate Management Team from East Michigan later this month to conduct a validation of Safety Management System Level 1 requirements. This review will validate our Safety Policy, management’s commitment of resources, designation of Key Safety Personnel, our training plan for all employees along with a comprehensive Implementation Plan addressing all the design elements of the FAA’s SMS Pilot Project.

In addition, the National Certification and Evaluation Program Office completed their National Air Carrier Evaluation Process evaluation of ABX at the end of March. This three month comprehensive evaluation involved over a dozen FAA inspectors from the national office inspecting in Wilmington, Cincinnati, and many of our out-stations. While the evaluation produced no formal letters of investigation, it will still provide a roadmap to make improvements using the FAA’s Air Transportation Oversight System criteria.

Thank you to everyone involved in ensuring our successful completion of these two important safety milestones.

Employee Milestones
We have a number of anniversaries to celebrate this month. AOG Specialist Scott Pennington, First Officer Mark Lindsay, Captain Lionel Thompson, and Captain Wayne Norris are celebrating 25 years with ABX. First Officers Michael Morgan, Dean Sollmann, Kent Hoversten, Michael Hinton, and Robert Fildes are celebrating 20 years of dedicated service. Finally, Crew Scheduler Jennifer Hale is celebrating her 1 year anniversary. Congratulations!

We also would like to take this opportunity to congratulate Flight Technical Training Instructor Craig Miller on his Letter of Recognition for the development of Flat Panel Display training material for a Non-ATSG carrier.

Performance
I am pleased to report that our on-time performance for March was 98.99%. This places our 1st Quarter 2013 CMI performance at a record setting high of 99.23%. We encountered some very challenging issues during the quarter and achieving this level of on-time performance day in and day out is a huge accomplishment. DHL has asked that we express their appreciation to everyone at ABX for all the hard work.

As soon as our 1st Quarter audited financial results are reviewed and approved, we will update you on the 1st Quarter results of the ABX Employee Incentive Plan.

In addition, ABX has also achieved the USTRANSCOM 100% Cargo Reliability Rating for the CRAF flights completed in the December 2012 through March 2013 performance period. Congratulations to everyone on a job well done.

IATA News
On April 2, the International Air Transport Association (IATA) released February data showing that air cargo maintained the modest improvement in demand that began in the fourth quarter of 2012. International economic indicators are suggesting that the global economy bottomed out in the third quarter of 2012. Industrial production and business confidence measures have been improving since then. Tony Tyler, IATA’s Director General and CEO, stated that “February’s air cargo performance has sustained the weak recovery that began in the fourth quarter of 2012. This is welcome news after two consecutive years of contraction. It is even better news that this growth is expected to pick up moderately as the year progresses. But improvements cannot be taken for granted. Events in Cyprus have reminded us that the Eurozone crisis is far from over. Any resulting loss of business confidence could shift the outlook for the worse.”

AMES
Airborne Maintenance and Engineering Services, Inc. (AMES) announced that it has entered into a heavy maintenance agreement with North American Airlines, Inc. (NAA) for light and heavy maintenance services. NAA operates a fleet of five Boeing 767-300ER aircraft. AMES completed the first in a series of planned A checks on NAA's Boeing 767-300ER passenger jets in January and has recently completed the first C check for NAA as well. A second C check is scheduled for September 2013.

Wilmington
In the Dayton Daily News, Mayor Randy Riley announced that Wilmington is rebuilding. So far this year, 139 new jobs have been filled. The city has secured pledges of nearly 378 new jobs from Polaris, DealerTrack Inc, Praxair Distribution and Custom Molded Products. Airborne Maintenance and Engineering also has pledged to hire an additional 259 workers over the next 15 months and is building a $15 million repair hangar at Wilmington Air Park. Riley stated that while the city is grateful for those pledges, those numbers will not be counted until they are filled. In what he calls a “conservative estimate,” Riley said Wilmington is on track to see the creation of a minimum 750 jobs this year. Mayor Riley wants Wilmington “to be the phoenix rising from the ashes of the current recession.”

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 April 25.

John Starkovich's INFOline  |  March 28, 2013
Good afternoon everyone. This is John Starkovich with the ABX INFOline for March 28, 2013.

Safety
During the month of February, there were four injuries reported. All four of them were slip, trip, and fall type of incidents. If you are like me, you likely do not want a lecture about paying attention and taking conditions into consideration when moving. It is because I generally already know that it was my fault, and I should have been more careful. Please take the time to pay attention, and keep yourself safe and injury-free.

Compliance
The FAA Certificate Management that performed the Air Carrier Evaluation Process (ACEP) here at ABX is close to completing its review. We are expecting the written results within the next few weeks. The evaluation reviewed our operations as a whole; identified hazards and assessed risks; and verified ABX compliance with applicable regulations.

Company News
Our on-time service performance for DHL for the month of March, subject to verification, is at 98.78 percent. Similarly, for the first quarter of 2013, we are at 99.16 percent on-time performance to date, all subject to verification.

ABX employees with balances in the Profit Sharing Plan should look for the 2012 annual statement in their home mailbox. They are slated to be mailed next week.

The ATSG annual shareholders meeting set for May 10, 2013 will be held at the Roberts Centre on I-71. Please mark your calendars and plan on attending. It is a great opportunity to hear the state of the company presentations and to ask questions of the senior ATSG leadership group.

An important change will occur for employees enrolled in the Company-sponsored health insurance. Beginning June 1, 2013, the pharmacy benefit manager will change from Medco to UnitedHealthcare’s Optum Rx. While this change does not affect the current coverage levels, it will change certain administrative processes and the manner in which eligibility and claims are processed by your pharmacy. It is expected that new insurance cards will be issued in late May. It would be very helpful if, prior to that time, each employee would check and, if necessary, update their home address and telephone number listed in the Employee Self-Service on the company web site. This will ensure that communications from UHC are directed appropriately. More detailed information from UHC is scheduled for the last week in April.

Other News & Information
With the European Commission’s refusal to allow the takeover of TNT Express by UPS, TNT has decided to take certain steps to return to profitability and concentrate on the strength of its European market. According to articles in Cargofacts and The Financial Times, TNT has plans to cut 4,000 jobs over the next three years; reduce some of its fleet in the 747 and 777 category; and sell its existing operations in Brazil and China that were both losing money. The Business Times reported this morning that TNT has announced the sale of its Chinese unit.

Last month, DHL issued a press release announcing that it had been certified as meeting ISO 9001:2008 quality management system requirements. The certification covers DHL Express offices and operational facilities in the Americas, Asia-Pacific, and Europe. Executive Vice President, DHL Express Global Network Operations Charlie Dobbie said in part, “the fact that we have now received ISO 9001:2008 certification at a global level is a testament to the uncompromising commitment to quality of our international specialists in all markets.” In order to achieve this certification, companies must demonstrate that they have implemented effective quality management systems across all areas of the business, including operations, training and development, customer complaint handling, finance, and billing. Congratulations to DHL and all of its employees for attaining this recognition.

Cargofacts Update reported in its March 22 edition that IATA published an updated forecast for 2013. It was “modestly optimistic” in that it predicted a higher growth in air freight traffic (measured in FTKs or freight ton kilometers) from 1.4% to 2.7%. The brighter forecast was accompanied with a caveat, however, that it is premised on the Eurozone remaining stable.

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

Bob Greene's INFOline | March 14, 2013
Hello, ladies and gentlemen. This is Bob Greene, Manager of Ground Operations, with the ABX Air INFOline for March 14, 2013.

Safety and Compliance
The International Air Transport Association (IATA) reports that the global accident rate for Western-built jets in 2012 was the lowest in aviation history at 0.20, the equivalent of one accident per every 5 million flights. This was a 46% improvement over 2011, when the accident rate was 0.37, or one accident for every 2.7 million flights. Runway excursions, in which an aircraft careens off a runway while landing or taking off accounted for 28% of the total accidents. IATA also reported that airlines on its Operational Safety Audit Registry experienced no Western-built hull accidents. The total accident rate for IOSA registered carriers was 4.3 times better than the rate for non-IOSA Carriers, 0.96 vs. 4.11. ABX Air has been listed on the IOSA Registry since 2009 and our next two-year renewal audit is targeted for August, 2013.

The Spring Edition of the Pilot SafetyLine has just been published and distributed to the pilot group. This latest edition provides details about how our Aviation Safety Action Program and Flight Operations Quality Assurance Programs work and provides a 2012 statistical summary for each. The Pilot SafetyLine can also be found on the ABX Flightweb, under the Safety Tab.

This week the ABX Maintenance Department renewed their Aviation Safety Action Program (ASAP) Memorandum of Understanding with the FAA. To support that milestone, Brad Hamlin, our Director of Outbase Maintenance has sent an email message to each outbase mechanic which explains the merits of ASAP and how to submit Safety Action Reports using the Web-Based Application Tool.

Employee Anniversaries for March
Congratulations and thank you to the following employees who have anniversaries in March. 25 years: Document & Training Coordinator Teresa Harris, Captains John Niewenhous, Daniel Valk, and Maarten Vis; 20 years: Sherri Patton in Crew Scheduling; 15 Years: First Officer Lawrence Groce and Aircraft Records Specialist Dana Siler; and 1 Year: First Officers Michael Donaghey and David Gordon.

DHL News
According to the March 8, 2013 issue of the industry publication Cargo Facts, “Deutsche Post-DHL released a preliminary look at its 2012 results, and while full details are not yet available, it appears that the company – and particularly its DHL divisions – had a tremendously successful year.” They go on to add that “total revenue was up 5.1%, to 55.5 billion euros, operating income was up 9.4% to 230 million euros, and consolidated net profit jumped 42.6% to 1.66 billion euros . . . DP-DHL said revenue was up by double-digit percentages in all regions other than Europe, driven by strong growth in international time-definite shipments.”

And even closer to home – “DHL Express reported revenue up 9.3% to 12.8 billion euros and Express operating income (EBIT) rose 21.2% to 1.11 billion euros.” In its press release DHL explained that “revenues and volumes rose particularly strong in Asia and the Americas region, where, in particular, good business performance in the United States was a key reason for this positive development.” DP-DHL CEO Frank Appel characterized these overall results as “we are delivering on our promises.”

IATA News
Also in this issue of Cargo Facts, “the International Air Transport Association (IATA) reported year-over-year growth in air freight traffic of 5.0% in January, with international traffic up 4.5% and domestic traffic up 7.5%. They temper that somewhat by saying that “we will have to wait until February results come in to get a more realistic picture of the 2013 growth trend.”

ATSG Airline Subsidiaries Complete Merger
ABX’s parent company, ATSG, announced on March 11 the completion of the merger of two of its airline subsidiaries, Air Transport International (ATI) and Capital Cargo International Airlines (CCIA). The merger creates a single airline, ATI, with its headquarters in Little Rock, Ark., its operations center here in Wilmington, Ohio, and its management team led by ATI President Dennis Manibusan. ATI currently operates 13 aircraft, including seven Boeing 767 freighters, three Boeing 757 freighters, and three DC-8 combi aircraft.

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

John Starkovich's INFOline  |  February 28, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for February 28, 2013.

Safety
As part of our SMS (Safety Management System) implementation, ‘Key Safety Related’ positions have been identified and an SMS Training Plan has been developed to train all ABX employees. Those who are in jobs designated as ‘Key Safety Related’ are presently completing comprehensive SMS Training that consists of an FAA Training Suite covering SMS Key Points and Safety Risk Management. General Training is under development for all other ABX employees which will cover their interface with our Safety Policy, Employee Reporting Systems, and a general overview of SMS.

Compliance
As we end February we are now two-thirds of the way through our National Air Carrier Evaluation Process conducted by the FAA Flight Standards National Field Office. We’ve seen lots of additional surveillance here at ILN and at many of our outstations. Thanks to everyone who has interfaced with the Inspectors from AFS-900 in conducting their evaluation; please keep up the good work.

Company News
Our on-time service performance for DHL for the month of February, subject to verification, is at 99.64%. For the first quarter of 2013, we are at 99.30% on time performance to date, all subject to verification.

Air Transport Services Group, Inc. (ATSG) February 15th announced the appointment of General Arthur J. Lichte to its Board of Directors. General Lichte, age 63, was Commander of the Air Mobility Command (AMC) at Scott Air Force Base in Illinois when he retired on January 1, 2010, as a four-star general after 38 years of service. The AMC provides rapid global mobility and sustainment for America’s armed forces. He previously served as Assistant Vice Chief of Staff and Director, Air Force Staff, Headquarters U.S. Air Force, Washington, D.C., with responsibility for Air Staff organization and administration. He was Deputy Chairman of the Air Force Council, and was the Air Force accreditation official for the Corps of Air Attachés. In addition, his experience included assignments at the Strategic Air Command, Air Mobility Command, U.S. Transportation Command, and United States Air Forces in Europe. ATSG President and CEO Joe Hete said, “General Lichte’s leadership of AMC, along with his understanding of the many commercial air carriers and aircraft that supplement the U.S. military’s air transport operations around the world, will be invaluable as we further develop and expand our air cargo and related businesses. We look forward to his contributions to the board’s oversight and support of our efforts to maximize returns for shareholders from those businesses”. General Lichte becomes the ninth director of ATSG. He will be a class III director and stand for election at the annual meeting of shareholders in May 2015.

Yesterday, February 27, 2013, Air Transport Services Group, Inc. (NASDAQ:ATSG), reported financial results as follows: Per-share net earnings from continuing operations of 19 cents in fourth quarter, 65 cents in 2012; Adjusted EBITDA of $42.6 million in fourth quarter 2012 exceeded our November 2012 guidance by 6 percent; Adjusted EBITDA Outlook: Baseline of $175 million to $180 million for 2013, with improving trend after first quarter, and an 8-10 percent incremental growth opportunity above 2013 baseline under aircraft deployment goals. Joe Hete, President and CEO of ATSG, said “We exceeded our target for Adjusted EBITDA in the fourth quarter of 2012, and began 2013 with the best aircraft fleet in our history, fewer capital commitments for our cash flow, and a strong balance sheet. I am optimistic that we can grow Adjusted EBITDA significantly this year from our current base of business alone, and will do even better if we achieve our aircraft deployment targets”.

Earlier this week, Tricia McIntire, Component Research Analyst, from the Maintenance department was awarded the “Silver Wings of Excellence” for her “can-do” attitude; her persistance in watching costs and her dedication to ABX Air, Inc. Her efforts resulted in the utilization of existing aircraft parts and inventory and the purchase of additional parts in a fashion that saved ABX thousands of dollars. Please join me in congratulating Tricia for her fine work in earning the Silver Wings of Excellence. If you have someone in your department that you feel deserves consideration for this award, please submit the necessary information to your Supervisor.

Other News & Information
This week of February 25 through March 1, has been designated “America Saves Week”. Fidelity has a number of workshops on-line that you can register for at http://webworkshop.fidelity.com/. It’s a good opportunity to review your retirement plans and take advantage of the resources that Fidelity provides at https://www.fidelity.com/viewpoints/personal-finance/financial-resolutions-2013.

Airborne Maintenance and Engineering Services, Inc. (AMES) announced that it signed an agreement with DHL to provide heavy maintenance services for at least twenty-eight (28) C checks over three years on DHL-owned and leased Boeing 767-200F aircraft currently operating in the U.S. network. The agreement, which runs from April 2013 through March 2016, covers 767 freighters operated for DHL by ABX Air. AMES has provided scheduled maintenance for these aircraft under a different arrangement since May 2009.

ATI and Capital Air Cargo are expected to merge the two companies under ATI within the next 7 to 10 days. ATI has already relocated the crew scheduling group and other ops support personnel to the ILN Airpark on the 1st floor of the former Admin building. Other relocations will continue gradually as the new ATI completes the transition. Please join me in welcoming them to ILN.

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  |  February 14, 2013
Hello, this is Jeff Walling, Director of Human Resources, with the ABX Air INFOLine for Thursday, February 14. Today is St. Valentine’s Day.

Safety
The Safety Department is processing statistics for 2012 and will brief them at the February Management meeting and post the presentation on the Safety Web. This information will include our OSHA Case and Lost Time frequency, the number and categories of Aviation Safety Reports and Aviation Safety Action Program Reports, along with data acquired from our Flight Operations Quality Assurance program. In addition, the briefing will include laser attack and fatigue data, and our status towards exiting Level 1 of our Safety Management System.

Compliance
In compliance news, last week we completed our European Union Emissions Trading System verification. This is essentially a third party audit that verifies that we’re properly tracking our carbon emissions for those flights that operate in and out of the European Union. The audit went well and a full report will be submitted to our competent authority in the Walloon district. Much appreciation to the many folks involved in this process and special thanks to Brian Laycock in Environmental and Frank Kennedy in Tax; job well done!

Industry News
In industry news, the International Air Transport Association (IATA) reported on Jan. 31 that the air cargo market declined 1.5% in 2012 – the second year in a row showing a decline. In their press release, IATA stated: "Air cargo has come under pressure from a slowdown in world trade growth, and shifts in the freight commodity mix. Expanding emerging economies have driven demand for bulk items carried by sea, while economic weakness in the West dampened demand for high-value consumer goods transported by air. Freight capacity grew just 0.2% over the year, and the freight load factor was 45.2%."

The Middle East and Africa were the only two geographic areas showing growth in 2012. In its outlook for 2013, IATA is projecting air cargo demand will increase by 1.2% while noting, “Significant headwinds remain. There is no end in sight for high fuel prices and GDP growth is projected at just 2.3%. But improved business confidence should help cargo markets to recover the lost ground from 2012.”

Business News
Turning to business news, we just completed the Valentine’s Day flower runs from South America to Miami. From January 19 to February 9, we completed 36 flights for our Miami customer, which is double the normal number of runs. Our customer reports we moved nearly 3.5 million pounds of flowers to market during this 22-day period. Special thanks to our pilots, aircraft maintenance personnel, professional load masters, and the operations and support staff who made this happen. And an extra thank you to Eric Plas, Stacia Garen, and Catherine Rettich for their outstanding efforts coordinating this annual event.

ATSG’s President and Chief Executive Officer Joe Hete, Chief Financial Officer Quint Turner, and Chief Commercial Officer Rich Corrado made an investor presentation at the BB&T Capital Markets Transportation Conference on February 13 where they shared with the investment community the Company’s business story and why investors should consider ATSG. The presentation is available for replay on the ATSG website.

Employee News
In employee news, congratulations to Technical Writer & Document Coordinator Janice Gardner, who is celebrating 30 years with the Company this month. Line Maintenance Rep (BWI) Kim Dean is celebrating 25 years. Capt. Bill Harley and Capt. Greg Watts are celebrating 20 years. Line Maintenance Rep (PDX) Mark Kliewe is celebrating 15 years; and First Officers David Knox, Scott Byer, and Timothy Hisnay are celebrating 1 year of service with the company.

In other employee news, the annual 5% contribution to the Capital Accumulation Plan (CAP) was made on February 4. To be eligible for this contribution, you must be a full-time or part-time employee at year end and eligible to participate in the CAP and who have at least one year of service on December 31stand worked at least 1,000 hours in 2012. You can see the amount contributed to your account by logging on to www.401K.com and clicking on the “Transaction History” link on the pull down menu and then electing “Transaction History” a second time and search for the February 4th date.

And speaking of savings, the week of February 25 is “America Saves Week.” This is a week-long national campaign that encourages individuals and families to plan and save for what matters most to them. This would be a great opportunity to take a look at your current 401(k) contributions and investment elections.

Wellness Update
Our wellness partner fitbit has introduced two new products. The fitbit One is an improved version of the current model and can directly sync with your iPhone and certain Android phones. Also, fitbit has introduced the fitbit Zip, which is a low cost option that also syncs directly with your smart phone. Both models also sync with your PC. Since the fitbit Zip meets the needs of our Wellness program, we are now offering the Zip for the $10 subsidized option. Employees can still request the fitbit One for a subsidized rate of $40. To be eligible for the subsidized rate you must be participating in the Company’s sponsored health insurance plan. If you’re not participating or would like additional fitbits, you can still receiving the Company’s discounted rate of $45 for the Zip and $75 for the fitbit One. This is a significant savings off the retail price available in stores and online.

Thanks to the 91 employees that completed the online United Healthcare Health Risk Assessment during the 4th quarter. You can expect to receive your $25 gift card by the end of the month. If you didn’t complete the Health Risk Assessment and would like too, you can do so online at www.myuhc.com. We’ll give you a $25 gift card if you complete a Health Risk Assessment for the first time in the first quarter or if it’s been more than a year since you completed one. These Gift cards will be distributed in the second quarter. Again you must be enrolled in the Company sponsored health insurance program to be eligible to receive a gift card.

Well that’s all I have for this week. John Starkovich will be back in two weeks with the next INFOline. Thanks for listening.

John Starkovich's INFOline  |  January 31, 2013
Good afternoon, everyone. This is John Starkovich with the ABX INFOline for January 31, 2013.

Safety & Compliance
Last week, the ABX Safety and Compliance Report for the 4th quarter was issued. There were no OSHA or property damage cases, which makes three (3) consecutive quarters without a claim. There were 29 Aviation Safety Action Program (ASAP) reports resulting in 19 ASAP events, as well as 7 Flight Ops Quality Assurance Program (FOQA) events during the 4th quarter.

On the regulatory compliance side of the house, there were 36 maintenance audits accomplished; 41 audit events for ground ops; and 6 CASE audits involving component repair vendors.

A complete copy of the 4th Quarter Safety and Compliance Report with all of the details is available for review in the office of our Director of Safety and Regulatory Compliance Steve Janasov.

Company News
Our on-time service performance for DHL for the month of January, subject to verification, is at 98.96%. Similarly, for the first quarter of 2013, we are at 98.96% again, all subject to verification.

Our sister company Airborne Global Solutions (AGS) has recently added two industry veterans to its sales force. Jack (Xiao Quan) Zhen has joined as Director of Business Development for China & Asia. He comes to AGS with a strong background in cargo aviation, aircraft leasing, fleet planning and has worked for Air China, Air Macau, SF Express and Southern Air Transport. Roy Linkner is a new Senior Director of Business Development for Africa, Middle East and Europe. Roy has over 25 years in air cargo having been with Delta Air Lines, British Air, Martinair Holland and more recently as Sr. VP of Sales and Marketing for Southern Air. ABX personnel look forward to working with both of them as ABX looks to expand our footprint and business.

W2 Wage and Tax Statements were delivered to employees in Wilmington and mailed to outbased employees today. Please contact the Payroll department if you do not receive your W2. For outbased employees please kindly allow for a few days for USPS delivery, as payroll will not issue duplicate W2’s until they are confident that they are not just in transit in the US mail.

Other News & Information
Some time ago, our sister company AMES completed the successful replacement of the aft pressure bulkhead on aircraft 795AX. The aft pressure bulkhead is an integral dome shaped section of the airframe that is located between the cabin and the tail that allows cabin pressure to be maintained. Jim Savastano, AMES VP of Technical Operations said in a press release that “Aside from Boeing, we are unaware of any operator or MRO that has completed this workscope on a Boeing 767 aircraft.” The project took approximately 30 days. A time-lapse video of the project can be viewed at www.airbornemx.com. I encourage you to watch the video. It is amazing to see all that was involved and is a reminder of the talents and ability of the employees working in the ATSG collection of companies.

A Reuters online news article reported that European Union (EU) antitrust regulators blocked the 5.2 billion euro UPS-TNT deal. The article reported that the European Commission said the proposed merger would have reduced competition in 15 EU countries and that UPS had not offered adequate concessions to ensure the deal would not hurt consumers. UPS' recent decision to withdraw its bid for TNT a couple of weeks ago was a flag as to the regulators' opposition to the acquisition.

An AMES and Clinton County Port Authority jointly sponsored contractors open house is being held on Friday, February 1, in the foyer of the Administration building to encourage local companies to bid on work opportunities such as excavation, concrete work, electrical, interior and exterior finishing, and many others for the new hangar. The general contractor, Bascon, Inc., will be on-site to discuss the bid opportunities.

The American Red Cross is gearing up for its 2013 Heroes Awards Breakfast by sponsoring a decorating contest to raise awareness for the Red Cross mission. Entries must be completed by Friday, March 1. HR will have a flyer with more details for those interested.

Our largest customer, DHL, is donating the services of its global express shipping network by teaming up with Pizza 4 Patriots to ship 21,000 ready-to-bake Chicago-style pizzas to US troops at several military bases in Afghanistan and Kuwait for Super Bowl Sunday. The large deep dish pizzas are being supplied by Illinois-based Great Kitchens. Since 2008, DHL has worked with Pizza 4 Patriots to send more than 122,000 pizzas in support of US military personnel overseas.

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

Jan Woolums' INFOline  |  January 17, 2013
This is Jan Woolums with the INFOline for January 17, 2013.

Safety
As we closed the fourth quarter, we’re pleased to report three consecutive quarters without an Occupational Health & Safety Administration Claim from an ABX employee. Please keep up the good work throughout 2013. Also there’s a new face in our Safety Department. Don Florea is now our Safety and Environmental Specialist. Some of his first ABX projects will be to review our Safety Manual, and our Outbase Emergency Response and Crisis Communication Plans.

Compliance
On January 10, two FAA Office Managers from the AFS-900 conducted an in-brief for selected ABX executives and compliance manager, formally commencing the FAA National Air Carrier Evaluation Process (ACEP) for ABX. The ACEP will run continuously and formally conclude on March 31 of this year. You can expect to see around a dozen FAA Inspectors representing the national office asking questions and conducting audits and surveillance here in Wilmington and throughout our system. Your cooperation with these personnel is sincerely appreciated.

Anniversaries
January company anniversaries include 25 years for Captain David Bower, Captain Stephen Jayson, and Technical Writer Carolyn Click; 20 years for Captain Michael Fisher and Captain Steve Snapp; 15 years for First Officers Douglas Turpin, Frank McKenzie, and Russell Woods. Celebrating 5 years is First Officer Albert Schwartz.

Company News
We regret to announce that the Delta Air Lines interline agreement has been discontinued. Unfortunately, due to a proposed cost increase and with very few people using the benefit, it no longer made business sense to continue the program. With most passenger flights operating near capacity these days, the opportunity to use stand-by tickets was more and more limited. With the internet travel search engines, it is much easier to find reasonably priced positive space airfare in today’s market.

We relocated our Flight Crew quarters at the DHL hub in CVG last Friday, January 11. The new facility is located in the last building on the left off of Wendell Ford road. All vehicle parking and hotel van drop-off is available directly in front of the new DHL building 6. The only significant changes are that the new building and all the amenities available are shared by all companies that operated within the DHL CVG Hub, and a security procedure change that no longer requires an escort for Jump-Seaters after obtaining their boarding pass.

The new crew area consists of a large bag room, plenty of showers, nine bunk-rooms, crew work room with eight new computers and adequate counter space to complete flight paper work. Two ABX offices for ABX fax, copier and V-Files, a progress crew lounge twice the size of the old one, two large TV’s ,tables, chairs, private work tables for personal use, and new leather recliners. One section of the crew lounge is closed off with the remaining area consisting of an open concept.

The cafeteria has a number of selections such as soups, salads, breakfast foods, and omelets made to order; along with a vending area that has two microwaves, soda and snack machines. The building 6 cafeteria will have the same hours of operation as the main cafeteria in building 2. Our drug test area will remain in building 2, with transportation between buildings 6 and building 2 available. The pick-up and drop-off area for the crew ramp vans has been improved due to less traffic congestion and time saved by having everything on one floor.

The feedback has been positive but just as any change there is an adjustment period. All in all, it’s a good start to a new year.

I’d like to close this week by thanking Rex Gunning, Alain Terzakis, Chris Carter, Matthew Netters, Mark Tom, John Riesing, and Mike Polllack, who were the key players in the move from the old building and the set-up of the new location in a 12-hour window, setting us up for a seamless operation on Friday night.

John Sarkovich's INFOline  |  January 3, 2013
Good afternoon and Happy New Year to everyone. This is John Starkovich with the ABX INFOline for January 3, 2013.

Safety
According to a Wall Street Journal article, air travel is now the safest it has been since the dawn of jet planes, with the global airline industry set to mark its lowest rate of fatal accidents since the early 1960s.

There were a total of 22 fatal crashes worldwide in 2012, a number that includes all passenger and cargo flights. This total is down from 28 crashes in 2011, according to data assembled by the Aviation Safety Network online. The U.S. hasn't had a fatal accident since a commuter plane crashed near Buffalo, N.Y., in 2009.

Safety at ABX is no accident, no pun intended. Much effort is put into making sure that we operate in a safe and compliant manner. My thanks to everyone in Flight, Maintenance, Ground Ops, and everyone else who works so hard to keep things safe on a daily basis.

Compliance
As was reported earlier, our FAA Certificate Management Team notified ABX that the Air Carrier Evaluation Process (ACEP) will be here in the first quarter of 2013. The start date is now set for January 10, 2013 and will begin with an in-briefing and a question-and-answer period. The evaluation process will conclude on March 31, 2013 and will be conducted by the FAA Flight Standards National Field Office. The ACEP is used by the Flight Standards National Field Office (AFS-900) to evaluate Part 121 air carriers using national type standards. The national team will be verifying ABX compliance with applicable regulations; identifying hazards and assessing risks; and evaluating our operations as a whole.

Company News
Our on-time service performance for DHL for the month of December, subject to verification, was 98.53%. For the final quarter of 2012, we came in at 98.97%, again, all subject to verification.

DHL has advised that the move to the new flight crew building in CVG, known as building 6, has been set for Friday, January 11. Please be governed accordingly.

All ABX employees are strongly encouraged to go online and verify their 2013 benefit election. Please go to the MyABX web site and select Self Service. After you log in, click on Benefits and then finally My Benefits. Any errors are to be reported to Beth Allen at ext. 62157 or email beth.allen@abxair.com, no later than January 10, 2013.

On another note, please keep in mind that effective January 1, the 2% reduction in FICA (otherwise known as Social Security Tax withholding) that we all enjoyed during 2011 and 2012 goes away in 2013, and the rate returns to 6.2% from 4.2%. Along with that, the new medical coverage rates also will be in effect. This reminder is an effort to avoid you being surprised with the amount of the electronic payroll deposit to your account.

Other News & Information
Congratulations to our sister company AMES and the Clinton County Port Authority on completing the necessary arrangements to proceed with the construction of a new hangar facility here at the Wilmington Air Park. Construction is slated to start this month. The $15.5 million facility will be a double bay that will be capable of handling Boeing 747 and 777 aircraft. It will be owned by the Port and occupied by AMES. It is projected that once completed, it could mean 259 new jobs.

ATSG announced today the election of Richard Baudouin to the Board of Directors. Mr. Baudouin is a principal in Infinity Aviation Capital LLC, an investment firm involved in aircraft leasing. ATSG CEO Joe Hete observed that Mr. Baudouin has an “exceptional track record in commercial aircraft leasing and financing that will be invaluable to ATSG.” He will be replacing and finishing the term of Jeff Dominick who had been on the ATSG Board since 2008 and is leaving the Board to avoid any conflict of interest upon accepting a position with Blackrock, Inc. We wish Jeff the best, thank him for his service, and welcome Mr. Baudouin to the organization.

In an article in Air Cargo World, it was announced that the US Senate confirmed Michael Huerta as FAA administrator for a five-year term. He had been a deputy administrator in 2010 and acting administrator since December of 2011. Both the airline industry organization, Airlines for America, and the Air Line Pilots Association lauded the confirmation.

ATSG announced that its subsidiary Cargo Aircraft Management (CAM) is purchasing a total of three 757 combi aircraft from National Air Cargo Group, Inc. These aircraft have been modified for combined passenger and main-deck cargo service. It will allow for the retirement of DC-8 combis which have been used principally in service to the US military for the United States Transportation Command. These Boeing 757-200 aircraft are to be flown by our sister company ATI and will provide its customers with a more modern and fuel-efficient alternative to the DC-8s.

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