ABX Air INFOline
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INFOline for May 8, 2014
Hello, this is Jeff Walling, Director of Human Resources, with a special ABX Air INFOLine for Thursday, May 8.

Safety & Compliance
In Safety and Compliance news, during the first quarter of 2014, ABX had zero reportable OSHA accidents and zero lost time cases. There were three minor non-OSHA reportable accidents during the first quarter -- all related to the winter weather. Thank you for working safe during this past winter season.

The ABX Safety department is compiling OSHA training modules into Adobe Connect, our online training software, and will be issuing a new training module for employees to complete. The software will maintain our records in an electronic version and is searchable. In addition, employees who are certified, competent or qualified in specific types of work will receive additional training based upon the individual work requirements.

Business News
In business news, the annual stockholder meeting for our parent company, Air Transport Services Group (ATSG), was held earlier today here at the Wilmington Air Park. At the meeting, stockholders approved the re-election of James Carey and Christopher Teets to one-year terms to the Board of Directors. The Company also recognized board member Jack Geary who retired today after ten years of service to the Company. We would like to thank Jack for his guidance and wisdom over the last ten years and wish him well in his retirement.

Stockholders also ratified the selection of Deloitte & Touche LLP as the Companyís independent public accounting firm and approved an advisory vote on executive compensation.

At the meeting, ATSG President and CEO Joe Hete, Chief Financial Officer Quint Turner, and Chief Commercial Officer Rich Corrado, gave a presentation to stockholders concerning the companyís business strategy and financial results for the first quarter. A copy of the stockholder presentation will be available on the ATSG web site later today or tomorrow.

Earlier this week, ATSG reported first quarter earnings from continuing operations of $6.5 million, or $0.10 per share, which were lower than earnings of $8.5 million, or $0.13 per share a year ago. Revenues were $143.6 million, flat with a year ago.

In addition this week ATSG executed an amendment to its primary credit agreement with its banks that extends the term of the agreement for two additional years until May 6, 2019; reduces interest rate pricing; adds a $50 million accordion feature; and improves its ability to execute stock repurchases and pay dividends to shareholders.

Other ATSG news announced this week include two new business agreements: Dry-leases for two Boeing 767-200 freighters to Cargojet, a Canadian airline, for terms of up to three years beginning in the second and third quarters this year. These aircraft are in addition to the two 767-200 freighters Cargojet currently leases from CAM.

Dry-leases for two Boeing 767-300 freighters to Amerijet, a Florida based airline, under six-year terms beginning in the third quarter this year. Amerijet currently leases three 767-200 freighters from CAM. More information on all this news is available on www.atsginc.com.

NASA at Wilmington
Capt. Mike Woodford, Manager of the ABX Air Part 142 Flight Training Center reports the following:

The ABX Air Part 142 Flight Training Center just concluded successful training sessions with NASA in support of their DC-9 and DC-8 test aircraft. The training consisted of issuing type ratings (4) to the NASA pilots for the DC-9 and DC-8 and issuing Flight Engineer ratings to two NASA Flight Engineers. The simulator portion of this training was at the ABX Air Flight Training Center in ILN in the DC-9 and DC-8 simulators. Because the ABX DC-8 simulator is a Level B full flight simulator and not a C level like the DC-9 and 767 simulators the flight test portion had to take place in NASAís DC-8-72 series aircraft. This training included ABX instructors Kevin Garrison for the DC-9 training, in ILN; Joe Proffitt and Larry Skinner giving flight checks on the actual NASA DC-8-72 in Palmdale, California. Present to oversee the training were NASA and FAA national representatives. Our own EMI FAA Training Center Program Manager Paul Dolza also pitched in to make the flight check a reality. These aircraft are critical to the NASA mission, and the Johnson Space Center and Armstrong Flight Research Center personnel were impressed by the professionalism of both our Ground and Flight Training instructors but also greatly impressed by the Flight Simulator Support folks that keep the simulators humming. As a side note there are only two certified DC-8 full flight simulators remaining in the world, one in Norway and the other in here in ILN. We hope to enter into a long-term training program with NASA in support of their varied and vital missions. I think NASA DC-8 Project Manager Frank Cutler said it best when he said, "We expected good service from a training facility dedicated to a respected 121 carrier, but what we got via our training experience was much more than we expected."

AMES 5-Year Anniversary
Five years ago, on May 4, 2009, Airborne Maintenance & Engineering Services (AMES) was established to provide fully integrated aircraft maintenance, overhaul, and repair services to airlines and aircraft operators, including ABX Air. Today, AMES has doubled in size and has over 600 dedicated employees. AMES will soon be opening a new hangar in Wilmington to meet the market demand for their services. A celebration for employees to mark AMESís 5th anniversary was recently held here in Wilmington to mark this occasion. Congratulations to AMES President Brady Templeton and all the employees at AMES for reaching this milestone. And speaking of the new hangar, there is a time-lapse video showing the construction of the new hangar on the AMES web site.

May Employee Anniversaries
Congratulations to Accounting Supervisor Tanya Woodford and Component Research Analyst Tricia McIntire who are both celebrating 30 years of service with the Company this month. Lead Line Maintenance Representative Ismael Roger is celebrating 15 years. Ground Training Instructor Steve Miller is celebrating 10 years, and Maintenance Controller Larry Maki is celebrating one year this month. Be sure to congratulate these employees on the milestone anniversaries the next time you see them.

Charity Drive News
Volleyball Tournament Starting Soon: Have fun with your co-workers and raise money for charity by entering ATSG's upcoming charity volleyball tournament, sponsored by ATI. Matches will be held at the volleyball court at ILN on Wednesdays starting May 21. The registration period is now through May 16. Register a whole team of six, or sign up as individuals to be assigned into teams, by emailing Courtney.Zimmerman@airtransport.cc. The entry fee is $5 per person.

Monthly 50/50 Raffle for Charity: Our new monthly 50/50 raffle is your chance to support charity and have a chance to win cash, too! Simply buy some raffle tickets each month for $1 each (or 6 for $5). At the end of each month, we'll draw a winner to receive half the pot, with the rest going to charity, then start the next monthly raffle. To buy tickets, see Rhonda Stevens (AMES), Tanya Woodford (ABX), Courtney Zimmerman (ATI), Stacy Gerber (LGSTX), or Paul Cunningham (ATSG).

Motherís Day
Finally, this Sunday is Motherís Day. Be sure to call, visit, or remember your mother this weekend.

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


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