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ABX-2006-TOP WLD CARGO
FORMED IN 1979 AND STARTED OPERATIONS IN 1980. (ABX) AIR IS THE OPERATING NAME OF THE AIRLINE DIVISION OF AIRBORNE FREIGHT. WEEKDAY NIGHT, CHARTER, REGIONAL & INTERNATIONAL, CARGO, JET AIRPLANE SERVICES THROUGHOUT THE CONTINENTAL USA, FROM AIR PARK HUB AT WILMINGTON, OHIO. PROVIDES OVERNIGHT, EXPRESS, SMALL-PACKAGE, JET AIRPLANE SERVICES.
145 HUNTER DRIVE
WILMINGTON, OHIO 45177, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
JANUARY 1996: HQ IN SEATTLE.
$290 MILLION, ACQUISITION, & FREIGHTER MODIFICATIONS, FOR 12 ORDERS (2/97) 767-200'S, +12, TO 15 (00 - 04) MORE, WORTH $310 MILLION. SELECTION MADE ON RELIABILITY, OPERATING EFFICIENCY & MANUFACTURER SUPPORT.
JUNE 1996: 1 DC-9-41 (47760), EX-JAPAN AIR SYSTEM (JAS).
NOVEMBER 1996: 6,350 EMPLOYEES (INCLUDING 650 FLIGHT CREW (FC) & 50 MAINTENANCE TECHNICIANS (MT)).
1 DC-9-41 (47768), EX-(JAS), DELIVERY.
DECEMBER 1996: ACCDT: ABX AIR (ABX) DC-8-63C (45901, /67) CRASHED ON CHECK FLIGHT NEAR VIRGINIA & WEST VIRGINIA STATE LINE = ALL FATALITIES, OF 3 FLIGHT CREW (FC) & 3 MECHANICS (MT), FOLLOWING MAINTENANCE AT (TIMCO) (HEAVY MAINTENANCE "C" CHECK AND MODIFICATIONS).
JANUARY 1997: 1996 = 520.3 MILLION (FTM) FREIGHT TRAFFIC.
1 DC-9-40 (JT8D-15), EX-JAPAN AIR SYSTEMS (JAS).
FEBRUARY 1997: 1 DC-8-63F (JT3D-7), EX-ATI INC.
APRIL 1997: 1ST QUARTER = +$14.37 MILLION (+$1.25 MILLION): TOTAL SHIPMENTS +8.5%, = 69 MILLION, DOMESTIC (+8.5%) = 67.7 MILLION, INTERNATIONAL (+8%) = 1.3 MILLION.
6,900 EMPLOYEES (INCLUDING 750 FLIGHT CREW (FC).
MAY 1997: SATURDAY DAY SERVICE TO ANCHORAGE. 38% GROWTH IN LAST 2 YEARS.
JULY 1997: MAINTENANCE & TECHNICAL SERVICES, 10 YEAR CONTRACT TO DELTA AIRLINES (DAL) FOR ALL 767-200'S. EXPECT TO HAVE 12 767'S BY 2000.
1996 = +$27.40 MILLION.
AUGUST 1997: TO REPLACE OMEGA/(VLF), WITH II MORROWS APOLLO 2101 (GPS) NAVIGATION MANAGEMENT SYSTEM, ON ALL DC-8'S BEFORE 9/30/97, (ALL OMEGA STATIONS DECOMMISSIONED).
DEE HOWARD, SAN ANTONIO HAS 1 YEAR MAINTENANCE CONTRACT FOR DC-8 HEAVY MAINTENANCE.
OCTOBER 1997: AIRBORNE FREIGHT CORPORATION: 20,000 EMPLOYEES.
3RD QUARTER = +$46.6 MILLION (+$4.6 MILLION): SHIPMENTS +26%. 1ST 9 MONTHS = +$89.3 MILLION (+$16.5 MILLION): SHIPMENTS +16%.
1ST OF 12 767-281'S (22785), EX-ALL NIPPON AIRWAYS (ANA), CURRENTLY AT (TIMCO), GREENSBORO, NORTH CAROLINA, FOR CARGO CONVERSION, MAINTENANCE BY DELTA AIRLINES (DAL). 2ND 767 (22786) DELIVERY.
DECEMBER 1997: 1 DC-9-41 (47623), EX-SCANDINAVIAN AIRLINES (SAS), TOMBO (TOM) LEASED.
JANUARY 1998: 4TH QUARTER = +$30.8 MILLION (+$10.7 MILLION). "BEST YEAR FOR COMPANY FINANCIALLY" HELPED BY AUGUST (UPS) STRIKE. 1997 = +$120.1 MILLION (+$27.2 MILLION): SHIPMENTS 302.7 MILLION (+17%): DOMESTIC 297 MILLION (+17%); INTERNATIONAL 5 MILLION (+13%).
MARCH 1998: 1 767-200 (CF6-80A) EX-ALL NIPPON AIRWAYS (ANA). 1 DC-9-41 (JT8D-11), EX-SCANDINAVIAN AIRLINES (SAS).
APRIL 1998: 1ST QUARTER = +$32.4 MILLION (+$14.4 MILLION) RECORD!
JUNE 1998: 767-281 (22787) (CF6-80A).
JULY 1998: DAVE MARCONTELL DIRECTOR ENGINEERING, EX-BOEING & DELTA (DAL).
2ND QUARTER = +$33.8 MILLION (+$28.3 MILLION).
WORLD OPERATOR 1997 COMPARISONS:
NET ($ MILLION): 18 SWS 223 (343); 19 CAT 219 (493); 20 QAN 198 (186); 21 GUN 137 (87); 22 ASA 127 (75); 23 AFC 120 (27); 24 IBE 110 (23); 25 ANZ 105 (150); 26 TII 101 (134).
(FTK) FREIGHT TRAFFIC (BILLION): 16 CLX 2.4; 17 AAL 2.4; 18 PAO 1.9; 19 SWS 1.8; 20 NCA 1.8; 21 MTH 1.8; 22 TII 1.6; 23 ALI 1.5; 24 EAF 1.42; 25 CKF 1.41; 26 AFC 1.40.
4TH 767, EX-ALL NIPPON AIRWAYS (ANA).
SEPTEMBER 1998: 5TH 767, EX-ALL NIPPON AIRWAYS (ANA), TO (TIMCO) FOR
MODIFICATIONS. DC-8 (N847AX) RETURNED FROM ISRAELI AIRCRAFT INDUSTRIES (IAI) AFTER "D" MAINTENANCE CHECK, AND LONG DUCT, (JT3D), STRUT MODIFICATION.
OCTOBER 1998: FISCAL YEAR (FY) 1997 = +$120.1 MILLION (+$27.2 MILLION). 9 MONTHS = +$99 MILLION (+11%). 3RD QUARTER = +$32.8 MILLION (+$46.6 MILLION/(UPS) STRIKE).
1ST 767 OUT OF MODIFICATIONS, READY FOR SERVICE. PLANS FOR +5 767'S/YEAR FOR NEXT 5 YEARS.
NOVEMBER 1998: 767-281 (CF6-80A), EX-ALL NIPPON AIRWAYS (ANA).
DECEMBER 1998: 11 ORDERS (2000) 767-281 (CF6-80A), EX-ALL NIPPON AIRWAYS (ANA), FROM ITOCHU (6) & MARUBENI (5), (TIMCO) (ASC) TO CONVERT TO FREIGHTER, NOW TOTAL 23. NOW 3 767-281F'S IN SERVICE. AIRPLANES COST $25 MILLION EACH, IN FREIGHTER CONFIGURATION. (TIMCO) (ASC), GREENSBORO, NORTH CAROLINA, HAS DONE PASSENGER TO FREIGHTER CONVERSION, WHICH ALLOWS 767'S TO CARRY 31% MORE CARGO, AND COST 14% LESS, TO OPERATE, THAN (ABX)'S DC-8'S.
JANUARY 1999: 1998 = +$137.3 MILLION (+$120.1 MILLION).
MARCH 1999: 767-281 (23016, N783AX) DELIVERY.
APRIL 1999: 1ST QUARTER = +$25.2 MILLION (+$32.4 MILLION).
6,900 EMPLOYEES (INCLUDING 750 FLIGHT CREW (FC). SITA: ADXOOGD.
+5 ORDERS (1999) 767-200'S (JT9D), EX-(TWA), FOR TOTAL 28, (TIMCO) TO CONVERT TO FREIGHTER. DC-9-41 (47596, N976AX), EX-SCANDINAVIAN AIRLINES (SAS), EX-TOMBO.
MAY 1999: SCOTT MEREDITH, 767 AREA SUPERVISOR, EX-BOEING (TBC) FIELD SERVICE REPRESENTATIVE.
JUNE 1999: 1,500 EMPLOYEES IN MAINTENANCE & ENGINEERING.
HAS 90 TERMINATING MAINTENANCE STATIONS AROUND THE USA.
JULY 1999: 2ND QUARTER = +$27 MILLION (+$33.8 MILLION) DUE TO SLOWDOWN IN DOMESTIC SHIPMENTS, BUT EXCEEDED ANALYSTS' FORECASTS. DOMESTIC SHIPMENTS -.7%; INTERNATIONAL +7.2%. FEDEX (FED) ALSO REPORTED LOWER-THAN-EXPECTED GROWTH IN DOMESTIC EXPRESS BUSINESS.
8TH 767-281 (23017, N784AX) FROM ALL NIPPON AIRWAYS (ANA).
AUGUST 1999: BEDEK (IAI) HAS $50 MILLION CONTRACT FOR 11 767-200 CARGO CONVERSIONS & MAINTENANCE. DUBBED THE 767-200PC (PACKAGE CARRIER), CONVERSION, INCLUDING REMOVAL OF PASSENGER EQUIPMENT, & INSTALLATION OF MAIN DECK CARGO FLOOR, & CARGO HANDLING SYSTEM, BUT NO CARGO DOOR, SINCE (ABX) USES CARGO CONTAINERS, THAT FIT THROUGH STANDARD PASSENGER DOORS.
SEPTEMBER 1999: DAVE MARCONTELL DIRECTOR ENGINEERING RESIGNED TO JOIN A REGIONAL OPERATOR IN ATLANTA. JEFF BECKER DIRECTOR OF ENGINEERING (ACTING).
(ABX) (JT8D) ENGINES, OVERHAUL BY AIR CANADA (ACN). (CF6-80A)'S CONTINUE TO BE OVERHAULED BY DELTA AIRLINES (DAL).
767-281 (23018, N785AX) DELIVERY. 1 DC-9-41 (47631), EX-SCANDINAVIAN AIRLINES (SAS), TOMBO (TOM) LEASED.
OCTOBER 1999: AIRBORNE FREIGHT CORPORATION 3RD QUARTER = +$21.6 MILLION (+$32.8 MILLION): DOMESTIC SHIPMENTS UNCHANGED, INTERNATIONAL +10.3%.
NOVEMBER 1999: 1 767-231ER (22572, N609TW) BOUGHT FROM (GECAS) (GEH).
DECEMBER 1999: CONTRACT TO JOUVE DATA MANAGEMENT TO CONVERT DC-8/-9 TECHNICAL MANUALS TO DIGITAL DOCUMENTS.
10,300 EMPLOYEES (INCLUDING 750 FLIGHT CREW (FC)).
(QVT) HUSHKITS INSTALLED ON DC-8-61 (297 & 541).
JANUARY 2000: 1 767-231ER (64-22571, N608TW), (GEH) LEASED. 2 767-281'S (23019, N786AX; 23020, N787AX), EX-ALL NIPPON AIRWAYS (ANA).
FEBRUARY 2000: 4TH QUARTER = +$17.3 MILLION (+$38.3 MILLION). 1999 = +$91.2 MILLION (+$137.3 MILLION).
JOE HETE PRESIDENT.
NEW SERVICE TO PHOENIX (767-200F).
767-200F HAS +35% CARGO-CARRYING CAPABILITY COMPARED TO ITS DC-8'S & OPERATING COSTS ARE -14%. 4 DC-8-61 (285, 96, 341, 543) GROUNDED DUE TO STAGE III RESTRICTIONS. (296) PARTED OUT. 9 MORE DC-8'S TO BE GROUNDED IN 2000.
MARCH 2000: 3RD OF 6 767-200ER'S (JT9D) (22570), EX-(TWA), (GECAS)
(GEH) LEASED. 767-281 (23021), EX-ALL NIPPON AIRWAYS (ANA), VIA (KC) THREE INC.
APRIL 2000: 22,994 EMPLOYEES.
767-231ER (22566, N702AX), GECAS (GEH) LEASED.
MAY 2000: 1ST QUARTER = +$32.1 MILLION (+$25.2 MILLION).
JULY 2000: 2ND QUARTER = +$13.8 MILLION (+$27 MILLION).
AUGUST 2000: CARL DONAWAY PRESIDENT & (COO), REPLACES BOB BRAZIER, WHO IS NOW VICE CHAIRMAN.
1999 = +$91.2 MILLION (+$137.29 MILLION).
SEPTEMBER 2000: 1 767-281 (23140, N790AX), EX-ALL NIPPON AIRWAYS (ANA).
NOVEMBER 2000: 3RD QUARTER = -$5.5 MILLION (+$21.6 MILLION).
DAVID BILLINGS, SENIOR VP & CHIEF INFORMATION OFFICER (CIO).
DECEMBER 2000: STATIONS 767-200F AT ONTARIO, CALIFORNIA, TO BOOST ITS TRANSCONTINENTAL CAPACITY. HAS REPLACED DC-8'S AT MOST WEST COAST CITIES, WHICH ARE MOST DISTANT POINTS FROM ITS MAIN SORT HUB AT WILMINGTON. 767'S PROVIDE +35% CARGO-CARRYING, CAPABILITY, COMPARED WITH DC-8'S, & OPERATING COSTS, ARE -14% LESS.
1 767-205ER (23058, N651TW), EX-(TWA), (GEH) LEASED. 3 DC-8-61'S (45848; 45940; 46158) & 2 DC-8-62 (45917; 46134), RETIRED.
JANUARY 2001: TO WET-LEASE 2 DC-8F'S TO (BWIA) (TTA), FOR FLIGHTS
FROM TORONTO AND MIAMI, TO PORT OF SPAIN.
2000 = +$28.5 MILLION (+$91.2 MILLION): SHIPMENTS +1.7%.
APRIL 2001: DECIDES TO EQUIP ALL ITS FREIGHTERS WITH TRAFFIC ALERT & COLLISION AVOIDANCE (TCAS) FROM ROCKWELL COLLINS.
MAIN BASE: WILMINGTON INTERNATIONAL AIRPORT.
1ST QUARTER = -$17 MILLION (+$17.9 MILLION).
JUNE 2001: TO LAY OFF 640 (2.5%) DUE TO WEAKENED ECONOMY. 1ST LAYOFFS IN 55-YEAR HISTORY.
1 767-281 (23141, N791AX) DELIVERY.
AUGUST 2001: 6 MONTHS = -$23.4 MILLION.
SELLS-LEASES BACK 5 767-200'S, VALUED AT $103 MILLION.
SEPTEMBER 2001: JOINS USA DEPARTMENT OF DEFENSE (DOD), (CRAF) PROGRAM.
NOVEMBER 2001: 3RD QUARTER = +$1.7 MILLION (-$5.5 MILLION), THANKS TO +$7.9 MILLION CREDIT FROM THE STABILIZATION ACT AND OTHER GAINS.
767 (N791AX) CONVERTED BY ISRAELI AIRCRAFT INDUSTRIES (IAI).
DECEMBER 2001: 2-YEAR $17 MILLION CONTRACT TO (TIMCO) (ASC), NORTH CAROLINA (ALS), FOR HEAVY MAINTENANCE AND MODIFICATIONS OF 20 767-200'S, & 35 DC-8'S.
JANUARY 2002: 4TH QUARTER = +$2.2 MILLION (-$11.9 MILLION), INCLUDING $5.2 MILLION CREDIT FROM FEDERAL BAILOUT, AND +$1 MILLION FROM SALE OF RADIO FREQUENCIES. 2001 = -$19.5 MILLION (+$28.5 MILLION).
CONTRACT WITH ISRAELI AIRCRAFT INDUSTRIES (IAI) TO CONVERT 5 767-200 AIRPLANES TO A NEW SPECIAL FREIGHTER (SF) CONFIGURATION, INCLUDING A STANDARD CARGO DOOR MODIFICATION. AVAILABLE IN 2004, THE SUPER FREIGHTER WILL INCREASE CUBIC CAPACITY, AND PAYLOAD/RANGE CAPABILITY, VERSUS CURRENT CONVERSION.
ACCORDING TO THE AIR CARGO MANAGEMENT GROUP, GLOBAL AIR FREIGHT TRAFFIC GREW +8% IN 2000, DECLINED -5% IN 1ST 6 MONTHS 2001, AND EVEN FURTHER AFTER 9/11, WITH -7 TO -10% FOR 2001, BUT 2002 IS PROJECTED TO REGAIN 1999 LEVELS.
FEBRUARY 2002: ROBERT CLINE CHAIRMAN, IS RETIRING, AND WILL BE REPLACED BY CARL DONAWAY (CEO), 50, IN 2002-04.
MARCH 2002: 22,990 EMPLOYEES. SITA: ADXOOGB.
APRIL 2002: 1ST QUARTER = +$5.3 MILLION (-$17 MILLION).
MAIN BASE: WILMINGTON INTERNATIONAL (ILM).
July 2002: 2nd Quarter = +$457,000 (-$6.4 Million). 2001 = -$19.46 Million (+$28.49 Million).
August 2002: 767-281 (23144, N794AX), ex-All Nippon Airways (ANA).
September 2002: 2nd Quarter = +$457,000 (-$6.4 Million). 1st 6 months = +$5.7 Million (-$23.4 Million).
Selects (IAI) Bedek Aviation Group to convert 5 767-200's to full freighters in 2003 - 2005. (AAR) Cargo Systems, selected to design and manufacture the cargo loading systems.
November 2002: 3rd Quarter = -$3.1 Million (+$1.7 Million). 9 months = +$2.7 Million (-$21.6 Million).
December 2002: DC-8-61 (46016, N852AX), scrapped.
January 2003: 767-281 (23146, N796AX), ex-All Nippon Airways (ANA), bought from (KC) Six.
February 2003: 4th Quarter = +$12.2 Million. International sales climbed +23%. Shipments from Asia rose during a 10-day shutdown of US West Coast ports, where (ABX) was able to charge higher rates for those shipments.
March 2003: Parent Airborne Inc 2002 = +$14.8 Million (-$19.5 Million).
Airborne Inc sells its ground shipping operations to (DHL) Worldwide Express for $1.05 Billion cash at a premium over the Seattle company's stock price, for all assets except its fleet of about 116 owned and leased airplanes. (DHL)'s parent, Deutsche Post, hopes to obtain a bigger share of the USA air cargo and express markets. As non-USA entities, Deutsche Post and (DHL) International are barred by USA law from owning more than 25% voting control of a USA airline/operator. (DHL) Airways is affiliated with (DHL) International, but the (DOT) has determined that it conforms with a USA-owned entity, in face of challenges by Fedex (FED) and United Parcel Services (UPS).
Airborne, which does business as Airborne Express, has 22,994 employees worldwide, and created its ground shipping unit to deliver packages by trucks in 2001, as companies shifted away from expensive air shipments and more consumers ordered goods over the Internet. Ground operations accounted for 11% of its total volume of shipments in 2002.
April 2003: 7,675 employees.
May 2003: 1st Quarter = -$5.6 Million (+$5.3 Million).
June 2003: 7,800 employees.
August 2003: 2nd Quarter = +$8.3 Million (+$500,000). 1st 6 months = -$1.8 Million (+$5.7 Million).
(ABX) Air (ABX) essentially became the airline operation of Airborne Express. Airborne (ABX)'s pilots are represented by the International Brotherhood of Teamsters union. Pilots (FC) reached a tentative agreement with Airborne (ABX) on a new 5-year contract that includes job protection, including language that would require its pilots (FC) to transfer to another company if the airline were sold, according to the union.
September 2003: $1.1 Million contract from USA Jet (USB) for (ABX) Air (ABX) to modify 8/4 DC-9's with (RVSM) equipment. Plans to do installation on 2 airplanes before end of 2003, and 5 in 2004, with an option for an additional 4 airplanes in 2005.
767-281 (23432, N799AX), bought from Marubeni.
January 2004: 4th Quarter = +$7.6 Million (+$3.5 Million). 2003 = -$446.9 Million (+$13.3 Million): 99% of revenues from 2 commercial agreements: a wet-lease (ACMI) accord, and a hub and long-haul services agreement, both with Airborne (ABX)/(DHL).
(ABX) became an independent company as a result of separation from its parent, Airborne, which was acquired by (DHL) Woldwide Express. 2003 reflects 227 as a wholly-owned subsidiary of Airborne, & the last 138 days as an independent company.
March 2004: 767-281 (23142, N792AX), bought from Marubeni.
May 2004: 1st Quarter = +$6 Million (+$62.7%) (+$3.7 Million): including its earnings from its 2 contracts with Airborne/(DHL).
July 2004: Israeli Aircraft Industries' (IAI) Bedek Aviation Group received (FAA) Supplemental Type Certificate (STC) for its 767-200 freighter conversion program, 9 days after Israel's (CAA) certified the program. 1st airplane to be delivered to (ABX) Air.
767-281SF (23147, N797AX) redelivered after conversion by Israeli Industries (IAI).
August 2004: 2nd Quarter = +$5.8 Million (+63.6%) (+$3.5M), including $4.7 Million from its contracts with Airborne/(DHL). 1st 6 months = +$11.8 Million (+63.2%) (+$7.2 Million)
September 2004: 767-281 (23434, N752AX) bought from All Nippon Airways (ANA).
November 2004: 3rd Quarter = +$7.1 Million (-$461.7 Million). 9 months = +$18.9 Million (-$454.5 Million).
Plans to reduce the fleet by 26 airplanes: -10 DC-8's & -16 DC-9's, affecting 22 routes by end of 2005. Will add 4 767F's, (DHL) wet-leased.
(ABX) Air (ABX) is likely to ground 10 DC-8's and 16 DC-9's by end of 2005 as the consolidation of Airborne Express and (DHL) progresses.
December 2004: $5.1 Million (USPS) contract to manage an air network of both (ABX) Air (ABX) 115 airplanes and 3rd party leased airplanes to transport mail during the holiday season. (ABX) will provide logistics services and hub operations.
Quint Turner, (CFO).
January 2005: For the 4th quarter of 2004, (ABX) reported revenue of $361.4 million and a net profit of +$18.1 million compared to revenues of $274.1 and a net profit of +$7.6 million for the 4th quarter of 2003. For the year ended December 31, 2004, (ABX) reported revenue of $1.20 billion and a net profit of +$37 million.
April 2005: 7,500 employees (including 780 Flight Crew (FC)).
(ABX) Air (ABX) 1st Quarter = +$7.1 Million (+18.4%) (+$6 Million).
July 2005: 767-281 (23431, N798AX), ex-Air Do (HIA)/All Nippon Airways (ANA). 767-232, ex-Delta Airlines (DAL).
September 2005: (ABX) Air (ABX) said it will spend $190 million to acquire 767-232's from Delta Airlines (DAL) and convert them to freighters, a job it "anticipates" will be handled by Israel Aircraft Industries (IAI). It previously acquired a 767-232 from (DAL) in July.
November 2005: Innovative Solutions & Support (IS&S) and (ABX) Air (ABX), the former air arm of Airborne Express that now operates independently, have teamed up to offer operators of 757s and 767s a flat panel display retrofit. The 2 achieved an (FAA) Supplemental Type Certificate (STC) for the conversions. Under a partnership, (ABX) will provide installation and pilot training while (IS&S) will supply the (LCD)s and (STC). According to the companies, retrofit of (CRT) primary flight/navigation display systems with the flat panels can be accomplished "in less than 4 days." Geoffrey Hedrick (IS&S) Chairman & (CEO) said, "Until now, the widespread adoption of flat panel technology has been limited by the investment and downtime required to successfully retrofit outdated flight decks."
December 2005: Delta Air Lines (DAL) received some welcome financial relief as cargo carrier (ABX) Air and (CIT) Group (TCI) agreed to purchase a combined 21 airplanes from the beleaguered company. (TCI) announced it will buy 10 737-800 delivery positions from Delta (DAL) in a deal worth approximately $600 million. The airplanes, part of the carrier's order backlog with Boeing (TBC) will be delivered in 2007 (9) and 2008 (1). (TCI) manages a fleet of >300 commercial and regional airplanes operated by >100 airlines.
(ABX) Air had agreed to purchase 11 767-200s a week before Delta (DAL) entered Chapter 11, under which it was forced to file a motion with the USA Bankruptcy Court requesting approval for the sale subject to higher bids at an auction. The motion was approved when no bids were received.
January 2006: 767-232 (22213, N101DA), bought from Delta Airlines (DAL).
February 2006: 767-232 (22221, N109DL), bought from Delta Airlines (DAL).
March 2006: Although still flying profitably during difficult times for USA airlines, cargo carrier (ABX) Air said that its failure to reach certain revenue incentives under a Hub Services Agreement with primary customer (DHL) was the principal cause of a -18% drop in annual net profit to +$30.3 million from +$37 million in 2004. Furthermore, (ABX) said it was notified by (DHL) that the company is taking over or terminating some of the services it purchased from (ABX) this year. The services being discontinued contributed an estimated $4.6 million, or 15.2%, of (ABX)'s 2005 profit and $292.3 million, or 20%, of revenues.
"While the loss of (DHL) revenues associated with these services is not welcome news, we believe that the company is positioned to replace the affected earnings and cash flows through continued growth in its non-(DHL) business volumes," (ABX) President & (CEO) Joe Hete said. Its non-(DHL) revenue increased +27% in 2005 and the airline is adding 5 767s this year, 3 of which will serve other customers.
Of (ABX)'s +$30.3 million 2005 profit, $21.3 million came from its (DHL) contracts. Total revenues rose +21.8% to $1.46 billion and expenses increased +23.1% to $1.43 billion. Operating profit fell -13.9% to +$38.8 million. In the 4th quarter ended December 31, 2005, (ABX) posted a profit of +$9.1 million, down from +$18.1 million in the year-ago quarter. Revenues rose +9.7% to $396.7 million and expenses increased +12.9% to $385.6 million.
767-232 (22217, N105DA), bought from Delta Airlines (DAL), delivery.
April 2006: (ABX) Air (ABX) provides overnight express small-package services and jet airplane freight within Canada, Puerto Rico, and the USA. The company also provides specialist training services, maintenance & engineering, parts sales, and cargo charters.
(IATA) Code: GB - 832. (ICAO) Code: ABX (Callsign - ABEX).
Parent organization/shareholders: Publicly held (100%).
Main Base: Wilmington International airport (ILM).
Domestic, Freight Destinations: Abilene; Albany Georgia; Albany New York; Albuquerque; Allentown/Berthlehem/Easton; Alpena; Anchorage; Appleton; Arcata/Eureka; Atlanta; Austin;Bakersfield; Baltimore; Bangor; Billings; Birmingham; Bismark; Bloomington-Normal; Boise; Bozeman; Brainerd; Buffalo; Burlington Vermont; Carlsbad; Casper; Cedar Rapids; Charlotte; Charlottesville; Chattanooga; Chicago; Chico; Cleveland; Colorado Springs; Columbia Missouri; Columbia South Carolina; Dallas/Fort Worth; Del Rio; Denver; Des Moines; Detroit; Dodge City; Duluth/Superior; El Paso; Eugene; Fargo; Flint; Fort Lauderdale; Fort Myers; Fresno; Grand Canyon; Grand Island; Grand Junction; Grand Rapids; Great Falls; Greensboro/High Point; Greenville SC; Harlingen; Harrisburg; Hartford; Helena; Houston; Huntsville; Idaho Falls; Iron Mountain; Jackson Mississipi; Jacksonville Florida; Kalispell; Kansas City; Key West; Knoxville; Lake Charles; Lake Havasu City; Las Vegas; Lewiston;/Auburn; Little Rock; Long Beach; Los Angeles; Lubbock; Lynchburg; Madison; Manchester; MMarion; Medford; Memphis; Miami; Midland/Odessa; Milwaukee; Minneapolis/St Paul; Minot; Missoula; Moline; Moses Lake; Myrtle Beach; Nashville; New Bern; New Orleans; New York; Newburgh; Norfolk; North Platte; Oakland; Oklahoma City; Omaha; Ontario; Orlando; Panama City; Pensacola; Philadelphia; Phoenix; Pierre; Pittsburghg; Pocxatello; Portlanbd; Presque Isle; Providence; Raleigh/Durham; Rapid City; Redding; Redmond; Reno; Richfield; Richmond; Rifle; Roanoke; Rochester Maine; Rochester New York; Rock Springs; Rockford; Roswell; Sacramento; Saginaw; Salt Lake City; San Angelo; San Antonio; San Diego; San Francisco; San Jose; Santa Barbara; Santa Maria; SaultSte Marie; Savannah; Scottsbluff; Seattle; Shreveport; Sioux Falls; South Bend; Spokane; Springfield Missouri; St George; St Louis; St Petersburg; Steamboat Springs; Syracuse; Tallahassee; Traverse City; Tri-Cities Regionbal; Tucson; Tulsa; Twin Falls; Ukiah; Visalia; Waco; Washington; Wausau; Wenatchee; Wichita; Wilmington North Carolina; & Yuma.
International, Freight Destinations: Calgary; Edmonton; Hamilton; Montreal; San Juan; Vancouver; & Winnipeg.
May 2006: (ABX) Air (ABX) posted a 14.3% profit increase, in the first quarter to $8.1 million, rebounding from a difficult 2005, that saw profits drop, as primary customer, (DHL) Worldwide Express struggled to compete against FedEx (FED) and (UPS) in the USA market. The carrier earned +$7.1 million in the year-ago period. "Our operating results reflect the success of our initiatives to drive down costs, and improve productivity in our sort, line-haul and air operations for (DHL)," President & (CEO) Joe Hete said.
(ABX), which was spun off from Airborne Express when the delivery company's ground operations were acquired by (DHL) in 2003, is the largest airline serving (DHL)'s express operations in the USA. (DHL) lost a combined -$950 million in 2004 and 2005, on USA operations and (ABX) suffered as a result. (DHL)'s troubled integration of two USA air hubs into one site at the (ABX) base Wilmington, Ohio, was cited as a big driver of USA losses.
(ABX) said 1st-quarter revenues grew +6.5% to $369.2 million, with non-(DHL) 767 charter revenues jumping +78% to $3.9 million. Operating expenses rose +6.5% to $359.4 million, and operating income improved +6.6% to $9.8 million. While the carrier has said it plans to build up non-(DHL) operations, (DHL) contracts accounted for $360.8 million of the revenues. (ABX) said it worked with (DHL) to optimize airplane routing and remove costs from ground operations.
(DHL), hugely profitable in most of the world, projects that it will lose another -$360 million in the USA this year, but hopes to break even in the market by the second half of 2007.
June 2006: 767-232F (22213, N740AX), ex-Delta Airlines (DAL), converted to freighter and redelivered.
July 2006: 767-232 (22223, N111DN) bought from Delta Airlines (DAL).
August 2006: (ABX) Air (ABX) reported 2nd-quarter net income of +$6.5 million, down slightly from +$6.8 million in the year-ago quarter, on a -13.6% decline in revenues to $303.6 million. The cargo carrier attributed much of the revenue drop to the May 1 transfer of its line-haul truck operations to (DHL), the express delivery giant for which (ABX) provides USA air service. (DHL) still accounts for the vast majority of (ABX)'s business, but non-(DHL) charter operations did generate +$5.4 million in revenues during the quarter, a +69% increase. "Our non-(DHL) charter operations continue to expand and market demand for our 767F freighters remains very strong," (CEO) Joe Hete said.
1st 6 months = 373.74 million freight traffic -23.65% (FTK).
(ABX) Air (ABX), which was Innovative Solutions & Support (IS&S)'s first customer for its Flat Panel Display System (FPDS) retrofit on the 767, announced that the two companies will partner in developing and installing a system on a 767-200ER belonging to an unidentified third party. (ABX) holds a supplemental type certificate (STC) for the work, which is scheduled to be completed in the first quarter of 2007. (IS&S) announced development of an (FPDS) for the 737-300/-400/-500 at the Farnborough Air Show. "The flat panel display system includes primary flight/navigation display systems, that can be retrofit in less than four days by (ABX) Air (ABX). Our customer will begin with the implementation of the (IS&S) (STC) and add other features, including Electronic Flight Bag, a dedicated standby flight instrument and an [EICAS], as they become available," (ABX) Director-Technical Sales Bill Brown said.
767-232F (22221, N744AX), converted and redelivered.
September 2006: (ABX) Air (ABX) won a new 4-year contract to manage US Postal Service (USPS) terminal handling services in Indianapolis in a deal expected to generate $17.7 million in revenues through October 2010. (ABX), whose main USA client is (DHL), has managed the (USPS) Indianapolis sort facility since 2004. It has similar handling contracts with (USPS) in Dallas and Memphis.
767-232F (22216, N739AX), converted and redelivered.
November 2006: Cargo carrier (ABX) Air reported third-quarter net income of +$6.6 million, down -10.8% from net income of +$7.4 million in the year-ago quarter, on a -24% drop in revenues to $281.3 million.
Ohio-based (ABX) attributed the falls in profit and revenues to its primary customer DHL's assuming management in May of line-haul trucking operations, that (ABX) formerly operated, noting that those activities contributed +$74 million in revenues and +$1.3 million in net income in last year's 3rd quarter. But (ABX) said express delivery giant (DHL) "reaffirmed its commitment to the USA market and to working closely with (ABX) Air" during the quarter. (ABX) is expanding its non-(DHL) air charter operations, boosting those revenues +62% to $6.6 million in the quarter, but its results are mostly contingent on (DHL).
Expenses lowered -24% to $276 million. "We are achieving excellent service levels and have been very successful in controlling our costs for (DHL)," President & (CEO) Joe Hete said. "A recent independent study demonstrates that (DHL)'s on time delivery rates compare very well with its major USA competitors, thanks in large part to the service provided by our dedicated (ABX) Air employees."
Hete said (ABX) has been able to "profitably deploy" 767F freighters, adding a 3rd to its fleet in September. It agreed to acquire 12 of the type last year. 3 767Fs are currently in service and a 4th will arrive late in the 4th quarter. 6 more are expected to enter service during 2007 and the final 2 will be delivered in 2008. "Customer demand for these airplanes remains strong, and we are pleased to see that during the last 2 quarters they have contributed the double-digit operating margins, we projected when we acquired them," Hete said.
For the 1st 9 months of 2006, (ABX)'s revenues dropped -10.8% to $954.1 million, and net earnings were +$21.1 million, down slightly from +$21.2 million for the same period last year.
767-232F (22217, N742AX), redelivered after conversion by Israeli Aircraft Industries (IAI).
December 2006: DC-8-63F (46113, N811AX), sold to Asian Leasing Group, leased to Cargo Plus (CPB).
January 2007: 767-232F (22222, N745AX), redelivered after conversion to F.
February 2007: 767-232F (22223, N746AX), redelivered after conversion to F. 767-232 (22215, N103DA), bought from Delta Airlines (DAL).
March 2007: Boeing (TBC) said it reached agreement with express cargo operator (DHL) on an order for 6 767-300ERF freighters valued at $894 million. It chose (GE) (CF6-80C2B7F)s valued at >$120 million to power the airplanes. (DHL) Express, (CEO) John Mullen said the airplanes will be delivered beginning in 2009 and likely will be dedicated to USA routes. A (DHL) spokesperson said it is undecided which of (DHL)'s affiliated contract carriers will operate the freighters. Astar Air Cargo (DHL) and (ABX) Air are its largest USA sub-service carriers and it is the process of finalizing a deal to acquire a 49% equity interest and a 25% voting interest in Polar Air Cargo (PAO).
(ABX) Air (ABX) will buy a former American Airlines (AAL) 767-200 and convert it to a freighter, the Ohio-based cargo carrier announced. The cost for purchase and conversion will be approximately $20 million and the airplane will be available for (ACMI) wet-lease, charter service by early next year. "We intend to seize opportunities to add to our 767 fleet, when they become available under attractive terms," (ABX) President & (CEO) Joe Hete said. (ABX) has 35 767s in service, including 29 for (DHL). It plans to fly 42 of the type by early next year.
Varig (VAR) Engineering & Maintenance (VEM) completed its 6th 767 freighter conversion, its 1st for (ABX) Air, in Rio de Janeiro. (ABX)'s 2nd of 5 airplanes already is undergoing conversion. (VEM) is working in conjunction with Israel Aerospace Industries (IAI).
767-232F (22227, N750AX), redelivered after conversion to freighter.
April 2007: (ANA) applied for permission to wet-lease 2 767-200SFs from (ABX) Air, each with a 40-tonne payload, for use on an expanded summer freighter schedule. It plans to increase flights to China from Osaka Kansai (KIX) by +90% and capacity (ATK)s by +72% compared to summer 2006. New services will include a 4x-weekly (KIX) - Beijing flight.
May 2007: (ABX) Air (ABX) signed a 2-year agreement with (ANA) to operate 2 767-200F freighters to support (ANA)'s cargo operations in Japan, China and Thailand. Effective May 15, the deal is expected to generate $22 million in annual revenue for Ohio-based (ABX), an all-cargo carrier that primarily operates flights on (DHL)'s USA network, but has been seeking to expand its base of services. "This agreement underscores (ABX)'s commitment to grow its presence as an international provider of airplanes and airplane-related services," President & (CEO) Joe Hete said.
(ABX) Air reported 1st-quarter net income of +$4.3 million, down -46.9% from +$8.1 million earned in the year-ago quarter, on a -22% drop in revenue to +$288.1 million. It said the declines were "expected as a result of (DHL) assuming management of its line-haul trucking operations from (ABX) Air in May of last year." Those operations generated +$65.3 million in revenue and +$1.3 million in pre-tax earnings in the year-ago quarter. Overall expenses decreased -22.3% to $279.3 million as (ABX) dropped costs associated with the line-haul business. All but $15.1 million of the 1st-quarter revenue was generated from (DHL) contracts. The company has been pushing to expand its scope of operations and reached a breakthrough in that regard earlier this month, when it signed an agreement to operate 2 of its 767-200Fs for (ANA). "Our business is better positioned for growth as an independent provider of air cargo services than it was a year ago and our new agreement with [ANA] launches us into new global markets," President & (CEO) Joe Hete said, noting that (ABX) is "the 1st non-Japanese carrier approved to conduct air cargo operations on behalf of a Japanese airline."
Revenue from the charter segment increased +83% in the quarter to $7 million and the company plans "to deploy additional airplanes into its charter segment giving (ABX) the opportunity to further diversify its customer base and grow earnings." It currently has 35 767F freighters in service, including 29 for (DHL).
767-232F (22225, N750AX), redelivered after conversion to freighter.
July 2007: Astar Air Cargo (DHL) Chairman, President & (CEO) John Dasburg said that (ABX) Air has not yet responded to Astar (DHL)'s "indication of interest" in acquiring its fellow (DHL) subservice carrier for $450 million in cash, and set a deadline of the close of business July 18 for a response. In a letter sent to the (ABX) board, Dasburg noted that the formal indication of interest sent late last month came after a number of informal discussions between himself and (ABX) President & (CEO) Joe Hete about a potential merger and that (ABX) should be able to issue a "meaningful response" soon. He added that Astar (DHL) would withdraw its indication of interest, absent a reply.
Later, (ABX) Air "unanimously rejected" Astar Air Cargo (DHL)'s proposal to acquire it for >$450 million in cash. (ABX) and Astar (DHL) are DHL's primary subservice carriers in the USA and the latter, late last month, issued an "indication of interest" to purchase the former and merge their air operations, which both are based at (DHL)'s Wilmington, Ohio, hub. In a letter to Astar (DHL) Chairman President & (CEO) John Dasburg, (ABX) President & (CEO) Joe Hete wrote that the board had examined Astar (DHL)'s proposal and "decided to reject your overture, as it would not deliver adequate value to our stockholders, relative to the value creation opportunity in the company's business plan."
August 2007: (ABX) Air reported 2nd-quarter net income of +$4.5 million, down -30.8% from +$6.5 million in the year-ago period, but touted a rise in non-(DHL)-related revenue as evidence of its overall strength. The cargo airline attributed the loss to a deferred non-cash $2.8 million tax expense, and said excluding taxes, it earned +$7.3 million, a +13% lift in pre-tax earnings.
The Wilmington, Ohio-based (DHL) subservice carrier's revenue decreased -7.3% to $281.3 million, as revenue from DHL operations declined -12.2%. But non-(DHL) revenue grew +156.8% to +$22.4 million, as the company continues its strategy of expanding beyond its agreements with the European express operator. "While our two commercial agreements with (DHL) remain a key component of our business and generate significant earnings and cash flow, we are focused on accelerating the strong momentum we have achieved in other businesses, principally the global air charter services provided by our expanding fleet of 767F freighters," President & (CEO) Joe Hete said. (ABX), for example, is operating 767-200Fs for (ANA) and has sufficient confidence in its business strategy, that it rejected a merger overture from fellow (DHL) subservice carrier Astar Air Cargo (DHL) last month. During the 2nd quarter, (ABX) operated 7 767Fs dedicated to non-(DHL) operations.
2nd-quarter expenses fell -8% to $274.6 million. Half-year net earnings were +$8.8 million, a -39.7% decrease from $14.6 million for the 1st 6 months of 2006.
(ABX) Air agreed to purchase a 767-200ER from Air China (BEJ) and convert it to a freighter for long-haul international operations. The Wilmington, Ohio-based cargo carrier projected the total cost to purchase, modify and put the airplane into revenue service at approximately $23 million. (ABX) primarily operates as a (DHL) sub-service carrier in the USA, but is eager to grow non-(DHL) operations outside North America. "We continue to expand our presence in the (ACMI) wet-lease charter industry and look forward to adding this airplane to our 767s already deployed with (ACMI) customers serving the South American and Asia/Pacific markets," President & (CEO) Joe Hete said. The 767 will be delivered to (ABX) Air in the 4th quarter and then sent to (VEM) Maintenance & Engineering (VAR) in Brazil for cargo conversion. It is expected to enter service in the 2nd quarter of 2008, likely becoming the 43rd 767 in (ABX)'s fleet.
September 2007: 767-2J6ER (23307, /85 B-2551), ex-Air China (BEJ). 767-232F (2226, N114DL), re-delivered after conversion.
November 2007: 1st 6 months = 443.46 million (FTK)s (+18.65%) (8th highest of USA cargo carriers).
(ABX) Air announced plans to open a new 767 domicile in Osaka, Japan beginning December 1. (ABX) is currently interviewing pilots (FC) for the Osaka, Japan base.
Having rejected a takeover offer from Astar Air Cargo (DHL) just a little more than 3 months ago, Ohio-based (ABX) Air became the acquirer, reaching a deal to purchase Cargo Holdings International (CCA) of Orlando in a transaction valued at approximately $350 million. (ABX) described (CCA) as "a leading provider of air cargo transportation and related services to domestic and foreign air carriers, and other companies that outsource their air cargo lift requirements." (CCA) and its Cargo Aircraft Management, Capital Cargo International Airlines (CCA), (LGSTX) Group and Air Transport International (TIN) subsidiaries, operate 32 freighter airplanes, and currently are converting 5 767-200s and 1 757-200. It also provides airplane leasing, fuel management and air charter brokerage services, and expects 2007 revenue of $300 million.
(ABX), which flies primarily as a wet-lease (ACMI) partner of (DHL), and reported a +$8.8 million profit, through the 1st 6 months of this year, said the combined company eventually will operate >135 airplanes, including the world's largest 767-200F freighter fleet (48). "The acquisition will create one of the world's leading diversified providers of integrated air cargo services," (ABX) President & (CEO) Joe Hete said, adding that (CCA) has "an attractive fleet profile, long-term relationships with [customers], an exceptional ontime delivery and safety record, significant cash flow, and an experienced management team."
(CCA)'s customers include the USA government, (BAX)/Schenker, (DHL), USA Postal Service, and (UPS). Upon conclusion of the transaction, expected this year, (ABX) Air and (CCA) will be wholly owned subsidiaries of (ABX) Holdings. Final equity purchase price is expected to be $260 million, accounting for an adjustment based upon (CCA)'s net assets. The transaction will be financed with the issuance of 4 million shares of (ABX) common stock, and cash from a $345 million senior secured credit facility, led by SunTrust Financial and Regions Bank, (ABX) said.
(ABX) Air declared that (DHL) is "in default" of its contracts with the Ohio-based airline, that transports cargo throughout the USA for the express giant. (ABX) has both an (ACMI) wet-lease and a hub and line-haul service agreement with (DHL), under which the latter reimburses the former for many of the expenses incurred while conducting (DHL) business. But the contracts stipulate that the reimbursements are reduced substantially if (ABX)'s total revenue from non-(DHL) operations exceeds 10%, and (DHL) claims that threshold has been topped. (ABX) said in a statement that (DHL)'s calculation is flawed, insisting revenue generated from non-(DHL) operations is below <10%. President & (CEO), Joe Hete added that the decision to file documents formally with the USA Securities & Exchange Commission alleging contract default, "was taken only after intensive efforts on our part to resolve this issue directly with (DHL)." Despite the dispute, he said (ABX) "is today and intends to remain (DHL)'s principal USA business partner."
Later, (ABX) Air posted 3rd-quarter net income of +$2.4 million, down -63.4% from a net profit of +$6.6 million in the year-ago quarter, and said it has agreed to arbitration to resolve its dispute with (DHL) over reimbursement of expenses, related to its contract flying for the express delivery giant. The Wilmington, Ohio-based cargo airline, which earlier this month agreed to acquire Orlando-based Cargo Holdings International (CCA), is trying to grow its non-(DHL) business, while still generating the vast majority of its revenue from transporting (DHL) cargo in the USA. That balancing act has led to a clash with (DHL) over $8.8 million in overhead expense reimbursements and to unexpectedly high costs in launching Asia-based 767-200F operations on behalf of (ANA). "Overall, the 3rd-quarter results were disappointing," President & (CEO) Joe Hete said, conceding that "margins during the quarter were hurt by high airplane crewing (FC) expenses in our Asia startup operations."
(ABX) said that it agreed with (DHL) to resolve their dispute over expenses via arbitration. (ABX)'s (ACMI) wet-lease and hub services contracts with (DHL) call for the latter to reimburse the former, for overhead expenses related to (DHL) operations, but the requirement becomes void, if (ABX)'s non-(DHL) business generates >10% of its total revenue. (DHL) claims that threshold has been topped, but (ABX) insists it still generates >90% of its revenue from (DHL) operations, and that the express operator is "in default." Hete said the arbitration agreement "is a positive step, 1 that demonstrates that our mutual interest in (DHL)'s success can be achieved only by working more closely together."
Meanwhile, (ABX) is moving forward with its planned acquisition of (CCA) for $350 million. It said the transaction, aimed at growing non-(DHL) operations, likely will close before year end, and that at closing (CCA) "will have 8 airplanes in the process of being converted into cargo configuration, including 5 767-200s and 3 757-200s." It will operate (CCA) as a wholly owned subsidiary of to-be-established (ABX) Holdings.
3rd-quarter revenue rose +1.6% to $285.96 million, while expenses increased +1.9% to $281.47 million, producing pre-tax earnings of +$4.7 million, down -28.5% from +$6.57 million last year. Pre-tax earnings from (DHL) operations, declined -12.2% to +$3.16 million on a -3.4% drop in (DHL)-related revenue to $260.56 million. Non-(DHL) revenue jumped +119% to $25.4 million, comprising 8.9% of total revenue.
December 2007: Hired 4 First Officer pilots (FC) in November.
767-232F (22215, N741AX), converted and re-delivered. DC-8-63F (524-46126, N812AX), sold to Farhad Azima for Johnsons Air (JON).
January 2008: (ABX) Air, the Wilmington, Ohio-based airline primarily focused on transporting (DHL) cargo around the USA, said it completed the previously announced $332 million purchase of Cargo Holdings International (CCA), the Orlando-based, outsourced air cargo services provider, that counts global logistics firm BAX/Schenker as its main client. (ABX) created a new holding company, (ABX) Holdings, of which (ABX) Air and (CCA) are now separate wholly owned subsidiaries. The buy is part of (ABX)'s strategy to diversify its business beyond (DHL). "We don't want to be in a position where we have 90% of our business from one customer," President & (CEO) Joe Hete said. He said (DHL) revenue will go from making up 92% of (ABX) Holdings' business to just >70%, owing to the (CCA) acquisition.
(ABX) Air extended its agreement to operate 2 767-200Fs on behalf of (ANA) in Japan, China and Thailand, to mid-January 2010. The USA cargo carrier, which values the wet-lease contract at $32 million annually, said the new deal replaces the original agreement signed last summer and contains terms that create "a pathway toward an expanded role for (ABX) Air in (ANA)'s operations."
March 2008: (ABX) Holdings, parent of USA cargo carriers (ABX) Air, Air Transport International (TIN) and Capital Cargo International Airlines (CCA), reported a -78.2% drop in net income for 2007 to +$19.6 million compared to +$90.1 million the previous year. The company downplayed the earnings decrease, attributing it in large part to "the effect of noncash tax items," and noting that its acquisition of (TIN) and (CCA) parent, Cargo Holdings International (CHI) at year end, would pay dividends in the future. (ABX) enjoyed a noncash tax benefit of $54 million in 2006 but incurred a tax expense of $13 million in 2007. It also pointed out that while revenue generated from its wet-lease (ACMI) agreement with (DHL) declined -11% to $1.08 billon, revenue from its non-(DHL) business grew +89% to $91.6 million, boosting its effort to become less reliant on the express cargo giant.
(ABX) President & (CEO) Joe Hete said that the purchase of (CHI) marked a "quantum leap that will accelerate our growth, diversify our revenue streams and contribute significantly to our cash flow in 2008 and beyond." Overall 2007 revenue fell -7.1% to $1.17 billion, while expenses decreased -7.4% to $1.13 billion, producing operating income of +$42.8 million, flat year-over-year. 4th-quarter net income declined -87.8% to +$8.4 million, compared to +$68.9 million the prior year.
(ABX) Air acquired a USA (FAA) Supplemental Type Certificate (STC) for the Wingspeed Corp XLLink Flight Information Architecture, it selected last year for voice and data communications on 13 767-200SF charter airplanes.
May 2008: (ABX) Air said that it reached agreement with (DHL) to extend its hub and line-haul services agreement to carry the express delivery giant's cargo in the USA market for another year, capping a busy week of activity in which it also reported a slight drop in 1st-quarter earnings and its parent company was renamed. The 1-year extension of the (DHL) contract will take effect in August. While (ABX) still generates most of its revenue from (DHL), it is endeavoring to diversify its business to a wide range of air cargo services. To that end, parent (ABX) Holdings changed its name to "Air Transport Services Group," which it said better reflects its range of assets that in addition to (ABX) now include subsidiaries Air Transport International, Cargo Aircraft Management, Capital Cargo International Airlines, and (LGSTX) Services.
First-quarter net income of the former (ABX) Holdings was +$3.8 million, down -11.6% from a +$4.3 million profit in the year-ago period. But the company touted a big boost in revenue from its non-(DHL) charter and wet-lease (ACMI) flying from $7.1 million to $93.3 million, as evidence that it is growing its business and broadening the range of services it offers. Overall revenue rose +32.6% to $382.1 million, though (DHL)-related revenue increased just +2.9% to $280.8 million.
"While we remain strongly supportive of our principal customer (DHL), and expect to remain a key provider of services to its USA network, these results also show that we are making great strides toward our goal of diversifying into new markets," President & (CEO) Joe Hete said. "We will continue to invest in and grow our family of businesses, with an eye toward even stronger operating cash flow, supporting our current customers and attracting new ones with our expanded range of services and platform options."
Later, (DHL) unveiled a $2 billion restructuring of its loss-making USA express business that includes shifting its air lift capacity in the market to rival (UPS), a potentially devastating blow to (ABX) Air and Astar Air Cargo (DHL), which currently provide the German express giant's USA lift. Parent, Deutsche Post World Net (DPWN) said it no longer can tolerate massive annual losses in (DHL)'s USA business, which it estimates will post negative (EBIT) of -$1.3 billion in 2008. While (DHL)'s signature yellow ground delivery vehicles still will operate in the USA, its airport-to-airport flying will be handled by (UPS) Airlines, beginning later this year, (DPWN) said. Additionally, it will close 34% of its package sorting facilities, particularly those in smaller markets, relinquishing blanket USA coverage in favor of higher-yield major markets. The USA restructuring is expected to generate cost savings of -$800 million in 2010 and around -$1 billion annually going forward from 2011, (DPWN) said. A finalized (DHL)-(UPS) contract will be signed later this year, the companies said.
The fate of (ABX) and Astar (DHL) is unclear, but (DHL) air hub activities presumably will be shifted from Wilmington, Ohio, to Louisville, where (UPS)'s WorldPort sorting facility is undergoing a $1 billion expansion to be completed in 2010.
(ABX) President & (CEO) Joe Hete said (DHL) has informed it that (UPS) likely will take over "substantially all of the services that (ABX) Air currently provides to (DHL)," adding: "We are disappointed that (DHL) has chosen not to pursue alternative means to improve its competitive position in the USA." (ABX) generates about 75% of its revenue from (DHL) operations. Astar (DHL) did not comment.
The (DHL)-(UPS) announcement marks a stark contrast from 2004, when (DHL) entered the USA market, following a lengthy regulatory battle in which (DPWN) and (UPS) exchanged heated public barbs. (DHL) has been unable to gain >6% share of the USA express delivery market. (DPWN) (CEO) Frank Appel said it was time to take "a more pragmatic approach to be a smarter player in the challenging USA express market."
(UPS) said the contract with (DHL) is expected to last 10 years and will produce up to $1 billion in annual revenue. The deal, however, is not a cease-and-desist between the longtime global rivals, (COO), David Abney said, explaining that it "would be a relatively straightforward air lift agreement and that (UPS) and (DHL) will continue to compete."
(DHL)'s plan to shift its USA air lift from (ABX) Air and Astar Air Cargo (DHL) to rival (UPS) leaves the fate of both airlines and the (DHL)-owned Wilmington, Ohio, air hub in limbo, with thousands of job losses and dozens of airplane sales possible. The transition from (ABX) and Astar (DHL) to (UPS) likely will take 12 to 18 months. (DHL) hopes to finalize a contract with (UPS) within the next 3 months and likely won't be able to make any definitive moves until the exact language is determined. Ohio's "Wilmington News Journal" reported that (ABX) has informed its 10,000 employees that >6,000 could lose their jobs. David Ross President of Airline Professional Assn/Teamsters Local 1224 representing (ABX) pilots (FC), said management "was caught flat-footed by (DHL)'s decision" and warned that "massive job loss" is possible.
But (ABX) spokesperson Beth Huber said, "We don't know how the [(DHL)-(UPS)] negotiations will come out. Until we know, it's business as usual. We still have planes coming in tonight." (ABX) already had been moving to diversify its business, forming a new parent holding company, Air Transport Services Group (ATSG), following its acquisition last year of several smaller cargo operators. "We don't want to be in a position where we have 90% of our business from one customer," (ATSG) President & (CEO) Joe Hete said last year. Still, (DHL)-related business comprised $280.8 million of its total $382.1 million in revenue for the 1st quarter.
(DHL) Americas Communications Director, Jonathan Baker confirmed that all USA air package sorting would be handled by (UPS) at its Louisville hub and that Wilmington would cease to be used "as a domestic air hub." He left open the possibility that (DHL) could operate international flights to the airport, which it owns. Its largest USA ground sorting facility is adjacent to the airport and "we'll need that going forward," he said.
(ABX) operates 55 DC-9Fs and 30 767Fs on (DHL) services, with 11 additional 767Fs used for its other operations, including two that support (ANA) cargo operations in Asia. (ABX) said its agreement with (DHL) includes a provision that would allow it "to sell back to (DHL) any airplanes removed from (DHL)'s network at fair market value." It values its DC-9Fs at $19 million each.
As for Astar (DHL), (DHL) last year acquired a 49% minority equity interest and a 24.9% voting interest in the airline. Baker confirmed that all of Astar (DHL)'s air lift would be moved to (UPS), but said that no decision "as yet" has been made regarding (DHL)'s stake. Astar operated 29 727-200Fs, 9 DC-8Fs and 6 A300B4-200Fs, as of year-end 2007.
(ABX) Air also announced that former (ATA) Airlines (AAT), VP Flight Operations Mike Geddes will assume the same role at (ABX), replacing the retiring Robert Morgenfeld.
(ABX) Air (ABX) is currently interviewing pilots (FC) for its new Osaka, Japan base. Applicants can apply online.
June 2008: (ABX) Air parent, Air Transport Services Group (ATSG) said that it has received formal notice from (DHL) that the express delivery giant will remove -39 of (ABX)'s 55 DC-9Fs dedicated to (DHL) USA air lift over the next 12 to 18 months. (DHL) is negotiating with (UPS) on details of an agreement reached last month to transfer its USA air lift from (ABX) and Astar Air Cargo (DHL) to its rival (UPS).
August 2008: The Air Line Pilots Association (ALPA) filed a lawsuit on behalf of Astar Air Cargo (DHL) pilots (FC) against (DHL) for "breach of contract and fraudulent inducement" relating to the delivery giant's decision to shift its USA flying from Astar (DHL) and (ABX) Air to (UPS). "By proposing to shift its North American flying work away from [Astar (DHL)] to (UPS), (DHL) is breaching job security commitments it agreed to provide to Astar (DHL) pilots (FC) in return for various benefits it received under the current labor contract," (ALPA) said. It is asking the court to enjoin (DHL) from moving its USA air lift to (UPS) and also is seeking compensatory and punitive damages.
USA Senator, John McCain (Republican-Arizona), the Republican presidential candidate, called the proposed (UPS) takeover of (DHL)'s North American air lift a "train wreck" and vowed to "do everything in my power to avert it," while two prominent senators raised antitrust concerns with the USA Department of Justice (DOJ). (DHL) and (UPS) are negotiating the final details of a proposed agreement reached in May in which the German delivery giant would shift all of its USA air lift from (ABX) Air and Astar Air Cargo (DHL) to its USA rival. The deal, which (UPS) estimates could generate +$10 billion in revenue over 10 years, effectively would shut down (DHL)'s USA air hub in Wilmington, Ohio, since its USA air cargo operations would move to (UPS) Airlines' Louisville hub. (ABX) has warned the deal could force it to cut up to -6,000 jobs in Wilmington, and another -2,000 workers employed in Ohio by Astar (DHL) and (DHL) also are in jeopardy. McCain met with thousands of (ABX) and Astar (DHL) workers in a town-hall meeting. "I am deeply troubled by the specter of job losses," he said. McCain's comments came just days after Senators Herb Kohl (Democrat-Wisconsin) and Orrin Hatch (Republican-Utah), Chairman and ranking member of the Senate antitrust subcommittee, jointly wrote to the (DOJ) stating that a shift of (DHL)'s USA air lift to (UPS) "raises the question if (DHL) will still be able to effectively compete against (UPS) . . . some critics of the proposed agreement contend that (DHL) will become a captive of (UPS) rather than an independent competitor." The deal, they added, essentially cedes the USA air package delivery market to just (UPS) and FedEx (FED). "Having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption, should service on one of these two airlines be reduced due to unforeseen difficulties," they wrote, calling for an immediate antitrust review.
September 2008: (ABX) Air will furlough an additional 17 pilots (FC) in late October. (ABX) reportedly expects additional furloughs later in the year.
November 2008: 1st 6 months = 494.8 million (FTK)s freight traffic (+11.58%).
(DHL) pulled the plug on its five-year push to become the "third alternative" to (UPS) and FedEx (FED) in the USA express shipping market, announcing that all domestic USA services will cease early next year, as it focuses exclusively on international operations to/from 15 - 20 USA metropolitan areas. "The basic reason is that the USA is a highly concentrated duopoly market and the reality is . . . (UPS) and FedEx (FED)'s scale, market reach and brand awareness have made it impossible for us to make it economically viable," (DHL) Express (CEO), John Mullen told reporters.
Mullen estimated that (DHL) lost around -$10 billion over the last five years on its USA venture, including its original investment in purchasing Airborne Express (ABX) and its Wilmington, Ohio, air hub. The company estimates it lost about -$1.3 billion annually on USA operations, "a level of loss that cannot be sustained," he said. He explained that Airborne (ABX) was a "small niche player of low quality," and despite (DHL)'s best efforts, it "never became big enough and never had enough reach to be able to compete with the two incumbents." (DHL) is "more than willing" to donate the Wilmington airport to the state of Ohio, he added.
The German delivery giant still is conducting negotiations with (UPS) to turn over the domestic line-haul flight portion of its international shipments to/from the USA to its rival. But the volume carried by (UPS) will be far lower than what originally was envisioned when the two announced their intent last spring to negotiate an agreement under which (UPS) would take over (DHL)'s USA air lift from (ABX) Air and Astar Air Cargo (DHL), dropping from about 1.2 million daily shipments to 100,000.
Mullen said he hoped the (DHL)-(UPS) deal will be finalized by year end. Total job losses at (ABX), Astar (DHL) and (DHL) owing to the domestic services shutdown are expected to top -9,500. Those cuts are in addition to -5,400 (DHL) USA jobs already slashed this year.
(DHL) envisions operating international flights into five USA gateways, likely including New York, Los Angeles and Louisville, and using line-haul contract flights operated by (UPS) Airlines to reach 15 to 20 markets that cover about 80% to 90% of its international shipping in the USA. It will contract smaller cargo operators to reach the remaining 10% to 20%, Mullen said. (DHL) generates about $4.5 billion annually in USA revenue, about $1 billion of which comes from international services.
(ABX) Air parent Air Transport Services Group (ATSG) outlined its plan to survive beyond next year's expected termination of its operation as a (DHL) subservice airline, saying it will become a smaller, diversified company that will wet- and dry-lease airplanes and provide expanded Maintenance Repair & Overhaul (MRO) services to third parties at its Wilmington, Ohio, base. President & (CEO), Joe Hete said the "much different" company will be 25% to 30% of its current size, and will seek to negotiate lower-cost labor contracts with employees, who will be retained. More than >6,000 (ABX) workers are expected to lose their jobs owing to the loss of the (DHL) air lift business. (DHL) announced its intention to withdraw from the USA domestic market on January 30 and turn over the line-haul air portion of its USA international shipping to (UPS).
"It's now clearer than ever . . . that (ABX)'s relationship with (DHL) will be winding down rapidly," Hete told analysts and reporters. He insisted (ATSG) will become a "pretty solid business, with great prospects" that will operate wet-lease (ACMI) cargo flights for carriers throughout the world, dry-lease airplanes via its Cargo Aircraft Management leasing unit, and expand its Wilmington (MRO) business, beginning in the 2009 second quarter, to offer services "as part of a package" to (ACMI) customers and third parties.
Under its new business model, it plans to retain 14 of the 27 767Fs it now operates for (DHL) to transition to (ACMI) operations. It will return five of the remaining 13 to lessors and sell the rest, including possible sales to (DHL). It estimates the current book value of each 767F at $4.5 to $5 million. Hete said (ATSG) will maintain a fleet of 36 freighters. (ABX)'s current operating fleet of 116 airplanes comprises 29 767Fs, 15 DC-8Fs and 72 DC-9Fs, most of which it plans to sell or return to lessors.
(ATSG) reported third-quarter net income of +$5 million, more than double a +$2.5 million profit in the year-ago quarter, on a +41% lift in revenue to $403.1 million, $276.8 million of which was generated from (DHL)-related business. Hete noted that non-(DHL) revenue for full-year 2008 is expected to be about $500 million, up from just $13 million in 2004.
SEE ATTACHED - - "ABX-2007-TOP-WLD-CARGO."
December 2008: (ABX) Air announced the furlough of an additional +156 pilots (FC) effective 16 Febuary 2009. (ABX) expects 257 pilots (FC) working out of a total of approximately 600 on the seniority list after DHL's domestic shipping is eliminated.
5 DC-9-31s (47003; 47004; 47072; 47148; 47203), and DC-9-41 (47497), sold to (DHL) Network Operations.
February 2009: 767-232Fs (22224, N747AX; 22225, N748AX), transferred to Aircraft One leasing and leased to (ATI) - Air Transport International (TIN).
DC-9-32 (47522) and DC-9-41 (47494), sold to (DHL).
April 2009: 767-2J6ER (23307, N712AX), transferred to Aircraft One Leasing.
May 2009: (ABX) Air parent, Air Transport Services Group reported first-quarter net income of +$11.1 million, a nearly threefold increase from a +$3.8 million profit in the year-ago period, as the loss of a good portion of its (DHL) business led to expense cuts that outpaced lost revenue. (DHL), for which (ABX) provides USA air lift, ceased domestic USA service on January 30 (eliminating more than 1 million daily air shipments) and is planning to move the hub for sorting its remaining international shipments from (ABX)'s Wilmington, Ohio, base to Cincinnati this summer. As a result, (ABX) is operating a scaled-down system, dropping from 10,000 employees to 3,000 and parking more than 70 DC-9F freighters. (ABX) additionally plans to sell five of its 767F freighters that it previously used for (DHL) services to the German express giant.
(DHL) has said it will continue to use (ABX) for air lift at least through August 2010, though the move from Wilmington to Cincinnati will curtail ground services that (ABX) now performs for (DHL). (ABX) said -900 more jobs likely will be cut owing to the move. President & (CEO), Joe Hete said the first-quarter profit demonstrates "that we are managing through turbulent times, while continuing to pursue our objectives of expanding cash flows from implementing cost reductions . . . [and] launching new business ventures." First-quarter revenue fell -26.6% to $280.6 million but the drop was offset by a -30.3% cut in expenses to $255.3 million. (DHL)-related revenue sank -34.9% to $182.9 million, while non-(DHL) wet-lease (ACMI) revenue grew +10.8% to $69.9 million.
July 2009: 767-281F (23145, N795AX), converted to freighter and redelivered. 767-281F (23144, N794AX), transferred to 767 Aircraft One.
August 2009: 767-281F (23020, N787AX), converted to freighter and redelivered.
October 2009: (ABX) currently has 347 pilots (FC) on furlough. (ABX) recalled 20 pilots (FC) in September and has 10 conditional recalls.
December 2009: 767-281F (23143, N793AX), redelivered.
February 2010: 767-281F (22787, N769AX), converted by (IAI), and redelivered.
April 2010: 767-281F (22790, N775AX), ex-(JA8484) redelivered, (DHL) wet-leased. 767-281 (22788, N773AX), ferried to Tel Aviv for freighter conversion. 4 DC-9-41s (47499; 47510; 47623; 47759) sold to (DHL).
June 2010: 767-281F (22787, N760AX), ex-(JA8481), leased from and operations for DHL.
July 2010: 767-281F (23016, N783AX), ex-(JA8465), leased from and operations for (DHL). 767-281 (23019, N786AX), ferried to Tel Aviv for freighter conversion.
September 2011: 767-281F (22788, N773AX), ex-Japan Air Lines (JAL), wet-leased to (DHL) Network operations. 767-232F (22223, N746AX), re-registered as (N763CX).
February 2011: (ABX) Air (ABX) has approximately 300 Flight Crew (FC) on furlough.
July 2011: Atlas Air Worldwide Holdings (AAWH) Senior VP, General Counsel & Chief Human Resources (HR) Officer, Adam Kokas was named Chairman of the Cargo Airline Association, succeeding (ABX) Air VP Flight Operations, Robert Gray, who held the position for five years.
November 2011: 767-231 (22570, N707AX), ferried to Tel Aviv for cargo conversion.
December 2011: (ABX) Air (ABX) has approximately 275 Flight Crew (FC) on furlough. See FltOps.com and FAPA.aero.
March 2012: (ABX) Air parent, the Air Transport Services Group (ATSG) (TIN), reported 2011 net income of +$23.2 million, down -41.7% from a +$39.8 million net profit in 2010.
The company said earnings were partly affected by training and transitioning costs for pilots (FC) as it upgrades its fleet. Airplanes added during 2011 included nine 767F converted freighters and one 757F. Additions in 2012 are slated to include seven more 767Fs and two 757 combi airplanes. (ATSG) (TIN) is in the process of retiring its remaining 727F and DC-8F freighters.
"Our fleet is substantially more modern, more fuel efficient and more reliable than ever before," President & (CEO), Joe Hete said. "We remain confident about the continued customer interest and strong yield potential from our investments in converted freighter assets."
(ATSG) (TIN) is the parent of (ABX) Air, Airborne Global Solutions, Air Transport International (TIN), Cargo Aircraft Management, Capital Cargo International Airlines, and Airborne Maintenance and Engineering Services. Its full-year 2011 revenue rose +9.4% year-over-year to $730.1 million, while expenses grew +14% to $667.5 million, producing an operating profit of +$62.6 million, down -23.4%.
Revenue last year from (ACMI) wet lease airline services rose just +2.9% compared to 2010 to $444.8 million.
"Our 2012 results will benefit from a full year of gains from the owned and leased airplanes which entered service during 2011, as well as owned and leased airplanes which we plan to add during 2012," Hete said.
June 2012: Astar Air Cargo (DHL) has lost its biggest customer DHL with almost no advance notice. It has now retired all of its remaining 8 DC-8-73F freighters and will have to lay off up to -200 of its staff. Astar (DHL), however, plans to continue operating at least one of its DC-8s on a contract for the USA government. Only two dozen DC-8s are now active worldwide and the sole USA airline operator is Air Transport International (TIN).
(DHL) will replace some of the flying done by Astar (DHL) on its behalf with a new agreement with Atlas Air (TLS) that will operate five 767-200F airplanes on its behalf. (ABX) Air also now operates an additional 767-200F and an additional 767-300F on behalf of DHL. Atlas Air (TLS) now operates nine 747-400F freighters on behalf of (DHL).
October 2012: (ABX) Air (ABX) expects some hiring and recalling of pilots (FC) who bypassed the last recall. See FAPA.aero: Pilot (FC) Career Conferences & Job Fairs . . . For Future & Active Pilots (FC).
February 2013: Airborne Maintenance & Engineering Services (AMES) won a contract from (DHL) to provide heavy maintenance services for at least 28 "C" maintenance checks over three years on (DHL)-owned and leased 767-200Fs, operated by (ABX) Air (ABX).
March 2013: The (ATI) Air Transport Services Group (ATSG) (TIN) has completed the merger of two of its airline subsidiaries. The move creates a single airline from Air Transport International (ATI) and Capital Cargo International Airlines (CCIA) (CCA).
The newly formed entity, (ATI), will be headquartered in Little Rock, Arkansas, with its operations center in Wilmington, Ohio. It will be headed by (ATI) President, Dennis Manibusan.
The merger follows the cessation of (ATSG)’s contract with global logistics provider, D B Schenker, which the (ATSG) had supported with a dedicated air cargo network served by (ATI) (TIN) and (CCIA) (CCA). The North American air freight network agreements ended in December 2011. Schenker's contribution to airline services revenues was $85.7 million in 2011.
“This merger is the most significant of a number of steps we are taking throughout the (ATSG) to better fit our airline overhead and operating cost structures to the airline operations we have today, and expect to add in the future,” (ATSG) President & (CEO), Joe Hete said.
(ATI) (TIN) has a fleet of 13 airplanes; five 767-200s, two 767-300s, three 757Fs and three DC-8 Combis. The DC-8s are slated to be replaced “soon” with four 757 Combis.
(CCIA) (CCA)’s air operator certificate (AOC) was surrendered to the (FAA) and its airplane leases and other assets transferred to (ATI). The (ATSG) is also the parent of (ABX) Air, Airborne Global Solutions, Cargo Aircraft Management, plus Airborne Maintenance & Engineering Services.
September 2013: According to FAPA.aero, there are currently 100 flight crew (FC) on furlough.
December 2013: USA-based Air Transport Services Group (ATSG) (TIN) is taking a 25% stake in Gothenburg-based, West Atlantic Group, paving the way for a strategic partnership between the two freight specialists.
The (ATSG) (TIN) and West Atlantic (AAG) are both active in cargo operations, airplane leasing and maintenance, prompting the tie-up that was signed December 6 and is expected to close January 2, 2014.
The West Atlantic Group has two subsidiary airlines (West Air Sweden and Atlantic Airlines (AAG)) which operate a fleet of 40 freighters including BAe ATPs, Bombardier CRJ-200s and Boeing 737s. The (ATSG) (TIN) is a Boeing 767 conversion specialist, with 47 of the type. It is parent to a range of subsidiaries, including cargo airline (ABX) Air and charter carrier, Air Transport International (TIN).
The partners did not disclose a value for the deal, although the (ATSG) (TIN) said the cost was “significantly less” than purchasing and modifying a single 767.
(ATSG) (TIN) President & (CEO), Joe Hete said the equity stake is expected to generate strong returns and it will help strengthen (ATSG) (TIN)’s air cargo presence in Europe, the Middle East, and Africa. “Our leading position in the medium wide body freighter market, and global reputation for delivering complete medium-size freighter solutions to major logistics services providers, together with West Atlantic (AAG)’s complementary strengths in providing time-definite air cargo services in Europe, make us ideally suited to work together on emerging opportunities,” he said.
West Atlantic (AAG) (CEO), Gustaf Thureborn also detailed plans to add a 767 to its fleet. “The 767 offers exactly the right combination of service capability and operating economics for us to expand our established position as a leading outsourced service provider, whilst leveraging the capabilities, experience and support of the world’s largest owner and operator of freighter converted 767s,” he said.
August 2014: 767-383F (26544, N226CY), Cargo Aircraft Management leased.
March 2015: (ABX) Air ((IATA) Code: GB, based at Wilmington, Ohio) is to begin flights linking the USA with Africa and Europe later this summer. The service is organized by Georgia-based shipping specialist, Sanya Airways Corporation, which is chartering a 767-300F from (ABX) Air.
According to Segun Adesanya, the Chief Operating Officer (COO) at Sanya Airways, the weekly flights will be routed Atlanta Hartsfield Jackson - Liège - Lagos - Windhoek International - Liège - Atlanta Hartsfield Jackson.
November 2015: 767-338 (25577, N371CM) converted to freighter and flown to Cincinnati.
December 2015: News Item A-1: "Amazon to Set Up Own Air Freight Unit" by www.ch-aviation.com, December 21, 2015.
Online retail giant Amazon is in talks with Boeing (TBC)) over the proposed acquisition of "at least" 20 freighter airplanes, "Cargo Facts" has reported.
Following weeks of speculation in the cargo community, informed sources told "Cargo Facts" that Amazon is indeed pushing ahead with plans to set up its own air freight operation, specializing in overnight deliveries throughout the USA. As such, talks with Boeing (TBC) reportedly focus on the 767-300F with deliveries to be spanned over three years.
In preparation for the logistics unit launch, Amazon has partnered fellow USA firm and parent to (ABX) Air ((IATA) Code: GB, based at Wilmington, Ohio, USA), Air Transport Services Group Inc, in trialing freighter operations. Thus far, Amazon has set up bases around the USA including Seattle Boeing Field and Wilmington, Ohio. At the former, Amazon has chartered a 737F freighter from Northern Air Cargo ((IATA) Code: NC, based at Anchorage Ted Stevens) (NAC) for use in serving Seattle, San Bernardino (close to a large Amazon fulfillment center), and the small city of Boise in Western Idaho.
The multi-billion dollar firm's move into the logistics market is expected to have serious repercussions on the global air freight market, given that the majority of its parcels are shipped using third party operators such as United Parcel Service (UPS), FedEx (FED), and the United States Postal Service.
March 2016: "Amazon to Start Air Cargo Network; Leases 20 Boeing 767Fs from (ATSG)" by (ATW) Mark Nensel, March 11, 2016.
Cargo aircraft lessor, Air Transport Services Group (ATSG) inked a deal March 9 with online retailing giant Amazon to run an air cargo network in the USA.
Ohio-based (ATSG)’s subsidiary charter cargo-delivery airlines (ABX) Air and Air Transport International (TIN) will operate 20 Boeing 767F freighters on behalf of Amazon Fulfillment Services, the delivery arm affiliate of Amazon, for 5 years, according to (ATSG). The network will only serve Amazon customers residing in the USA.
(ATSG)’s Cargo Aircraft Management division is in charge of the 5- to 7-year lease agreement with Amazon. (ATSG) subsidiary, (LGSTX) Services will provide gateway and logistics services for the freighter airplanes. As part of the agreement, (ATSG) granted Amazon warrants to acquire up to 19.9% of (ATSG)’s common stock shares at $9.73 per share over a 5-year period. “We have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources,” (ATSG) President & (CEO) Joe Hete said.
“We offer ultra-fast delivery promises to a growing group of [Amazon Prime] members,” Amazon Senior VP Worldwide Operations & Customer Service Dave Clark said. “Adding 20 planes [will] ensure air cargo capacity to support 1- and 2-day delivery for customers.”
As of December 31, 2015, (ATSG)’s total fleet of owned freighter airplanes comprised 36 Boeing 767-200s, 11 767-300s, 4 757-200s and 4 757 Combi airplanes.
In 2015, (ATSG) posted $619.3 million in revenues, up +5% year-over-year (YOY), an operating profit of +$72.8 million (up +12.8% YOY) and a net profit of +$41.2 million, up +38.1% (YOY).
November 2016: "Judge Orders Striking Cargo Pilots Back to Work" by David Koenig, & Mae Anderson, "AP" November 23, 2016.
A federal judge on November 23 ordered pilots (FC) for a cargo airline that delivers Amazon packages to go back to work. The judge in Cincinnati said that it was in the public's interest to end the strike because holiday shoppers expect to receive their packages on time. "Imagine Christmas without Amazon!" USA District Court Judge Timothy S Black wrote in his ruling.
About 250 pilots (FC) for (ABX) Air went on strike early on November 22 in a dispute over working conditions and time off. Dozens of flights and >1 million pounds of cargo were held up. (ABX) went to court to end the strike, saying its timing threatened to leave millions of dollars' worth of freight undelivered to homes and stores during the Christmas shopping season. (ABX) parent, the Air Transport Services Group (ARSG) Inc said pilots (FC) would begin returning to work November 23 night. The Teamsters union, which represents the pilots (FC), said the strike was causing (ABX) to cancel about 75 flights a day. Besides Amazon, (ABX)'s other major customer is Deutsche Post AG's DHL delivery service.
Analysts said an extended strike would have forced Amazon (AZO) to put more of its deliveries in the hands of (UPS), FedEx (FED) and the US Postal Service. The strike's impact would be short-lived (a few days, said Satish Jindel, President of Logistics Adviser (SJ) Consulting Group. "I don't think it's going to disrupt e-commerce or Amazon (AZO)," he said.
Even before the judge's ruling, Morningstar retail analyst R J Hottovy noted that Amazon (AZO) and other retailers have contingency plans to deal with disruptions of any sort (from weather to strikes) during the holidays. (AZO) has spread its deliveries among a larger number of carriers, from the post office down to small providers.
Amazon (AZO) has been trying to reduce its dependence on (UPS) and FedEx (FED) since those companies delivered millions of packages late during the 2013 holiday season. This year, Amazon (AZO) leased planes from (ABX) and another cargo carrier, Atlas Air (TLS), and began building its own ground-transport system.
The surge in online shopping (which is growing faster than in-store shopping) and promises of free shipping have put additional stress on delivery companies like (ABX). The (ABX) pilots (FC) said management violated their contract to keep planes flying. The union said the company is denying vacation time for some pilots (FC) and compensatory time off for others just to keep all its planes flying.
"We are doing all sorts of emergency shifts because we don't have enough people," said Tim Jewell, a union officer who flies Boeing 767 jets for (ABX). "It's taking a tremendous toll on our families."
Jewell said pilots (FC) will abide by the judge's order and return to work, "but manning and staffing will continue to be a problem."
(ABX) argued that the union was violating federal law by conducting a strike before checking off the necessary steps that federal law requires before a work stoppage in the airline industry. (ABX) President John Starkovich said the company would continue negotiations and arbitration to settle its differences with the union.
Labor relations at railroads and airlines are governed by a federal law that dates to the 1920s and makes strikes difficult. Most airlines haven't had a strike in many years, although pilots (FC) for Spirit Airlines (SPR) walked off the job in 2010.
January 2017: Wilmington, Ohio-b1ased Air Transport Services Group (ATSG), parent of cargo carriers (ABX) Air and Air Transport International (TIN), has acquired Tampa, Florida-based (PEMCO) World Air Services (ASC).
(PEMCO) (ASC) offers heavy maintenance, repair & overhaul (MRO) services to airlines, and also is a leading provider of passenger-to-freighter conversions on narrow body airplanes with a focus on 737-300 and 737-400 conversions.
Financial details of the acquisition were not provided, though (ATSG) said it did not assume any (PEMCO) (ASC) debt as part of the transaction. “This acquisition will allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies,” (ATSG) said. In particular, (ATSG) subsidiary Airborne Maintenance & Engineering Services (AMES) and (PEMCO) (ASC) will jointly market (MRO) services globally.
“The combination of (PEMCO) (ASC)’s conversion and (MRO) sales of both Airbus (EDS) and Boeing (TBC) products with (AMES)’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio,” (ATSG) President & (CEO) Joe Hete said, adding that “the (PEMCO) (ASC) acquisition is expected to be accretive to (ATSG)’s earnings starting in 2017.”
Click below for photos:
ABX-767-281SF-25 ON NOSE
ABX-767-338ER - 2012-08
0 767-2J6ER (JT9D-7R4E4) (126-23307, /85 B-2551), EX-(BEJ) 2007-09. (ETOPS) EQ'PD. XFRD TO AIRCRAFT ONE LSG 2009-04. LATER TO (SDB) 2009-06. 18F, 196Y.
1 767-205ERF (JT9D-7R4D) (101-23058, /84 N713AX), EX-(TWA)/(GEF) 2000-12. FREIGHTER.
1 767-223F (73-22314, N714AX), EX-(AAL). CONVERTED 2008-01. FREIGHTER.
1 767-223F (94-22315, N312AA), EX-(AAL). AIRCRAFT ONE LSD. FREIGHTER.
4 767-231ER (JT9D-7R4) (29-22566, /83 N702AX; 63-22570, /83 N707AX; 64-22571, /83 N708AX; 65-22572, /83 N709AX), EX-(TWA). 22570, TO TEL AVIV FOR CARGO CONVERSION. TO (TLS) FOR DHL EXPRESS OPS. FREIGHTER.
10 767-232F (CF6-80A) (6-22213, N740AX, 2006-06; 17-22215, N741AX, TO F 2007-12; 26-22216, N739AX, 2006-03; 27-22217, N742AX, 2006-11; 31-22218, N743AX; 53-22221, N744AX, 2009-03; 56-22222, N745AX, 2006-05 TO F 2007-01; 74-22223, N763CX, 2006-07; 76-22224, N747AX; 77-22225, N748AX, 2007-05; 78-22226, N749AX, 2007-09; 83-22227, N750AX, 2006-09; TO F 3/07; 22229, N744AX), BF (DAL). TO BE CONV TO F BY (IAI). 22225; TO AIRCRAFT LEASING & LST (TIN) 2009-02. 22224; STILL IN SERVICE 2010-01. 22215; RTND, TO (AMJ) 2010-03. FREIGHTER.
22 767-281F (CF6-80A) (51-22785, /83 N767AX; 54-22786, /83 N768AX; 58-22787, /83 N769AX, 2010-02 CVTD & REDELIVERED; 61-22788, /83 N773AX REDELIVERED 2010-09; 69-22790, N775AX REDELIVERED 2010-04; 84-23018, N785AX, REDELIVERED 2010-12; 96-23020, N787AX, REDELIVERED 2009-08; 106-23140, /85 N790AX; 108-23141, N791AX, 2001-06; 115-23144, N794AX, 2002-08; 116-23145, N795AX; CVTD & REDELIVERED; 123-23147, N797AX, 2004-07; 143-23431, N798AX, 2005-07). 10 YR MAINT & TECH SVCS BY (DAL), EX-(ANA). 23020; XFRD TO AIRCRAFT ONE 2009-04. 23144; XFRD TO AIRCRAFT ONE 2009-07. NOT (ETOPS) EQ'PD. FREIGHTER.
2 +2 ORDERS 767-281F (CF6-80A) (114-23143, N793AX, 2009-12; 116-23145, N795AX, 2009-07; 171-23434, N752AX, 2004-09), BF (ANA). FREIGHTER.
1 767-328ER/BDSF (CF6-80C2B6F) (531-27212, /94 N365CM), EX-(RAM) 2013-06. FREIGHTER.
1 767-338ER (CF6-80C2B6) (246-24317, /88 N317CM), EX-(QAN), CONV BY (IAI), CARGO AIRCRAFT MANAGEMENT LSD 2012-07. FREIGHTER.
1 767-338ER (CF6-80C2B6) (25577, N371CM), CONV BY (IAI), CARGO AIRCRAFT MANAGEMENT LSD 2015-11. FREIGHTER.
2 767-383F (25575, N372CM, 2015-07; 26544, N226CY), CARGO AIRCRAFT MANAGEMENT LSD 2014-08. 25575, TO TEL AVIV FOR CARGO CONVERSION 2015-07. FREIGHTER.
0 DC-8-61 (JT3D-3B HK) (45848; 45940; 46158; RETIRED 2000-12). MAINT BY DEE HOWARD, 4 SCRAPPED, 1 PARTED OUT; 46157 PARTED OUT. 46031; SCRAPPED 2007-06; 46016 SCRAPPED 2002-12. 45891 SCRAPPED 2005-03. 46032; SCRAPPED 2007-12. FREIGHTER.
1 DC-8-61C (JT3D-3B HK). 46037; SCRAPPED 2007-12. FREIGHTER.
0 DC-8-61F (JT3D-3B HK) (405-46015, /68 N842AX). SCRAPPED 2007-12. FREIGHTER.
0 DC-8-62 (JT3D-3B HK) (45906; 45917; 45987; 46079; 46134; SCRAPPED).
1 DC-8-63 (JT3D-3B HK), 46116 SCRAPPED 2004-11. 45927; 46041; WFU AT CINCINNATI; 45928; 46115; 46136; 46155; SCRAPPED 2007-12. 46126; ST FARHAD AZIMA FOR (JON) 2007-12. FREIGHTER.
4 DC-8-63C (JT3D-3B HK). FREIGHTER.
0 DC-8-63CF (JT3D-3B HK) (46061, N826AX), TO (JON) 2007-12 AS (9G-SIM). FREIGHTER.
0 DC-8-63F (JT3D-3B HK) (377-45999, N816AX). 46097; 46113; ST ASIAN LSG GRP FOR CARGO PLUS (CPB) 2006-12. 46093; WFU AT CINCINNATI. FREIGHTER.
1 DC-9-14 (JT8D-7B HK). FREIGHTER.
1 DC-9-15 (JT8D-7B HK) (14-45728, /65 N925AX; 20-45717, /66 N927AX). FREIGHTER.
0 DC-9-31 (JT8D-7B HK). 47553 RTT LESSOR 2002-12. 47008; SCRAPPED 2007-11; 47065; SCRAPPED 2006-11; 47165; SCRAPPED 2006-09. 47269; SCRAPPED 2006-11; 47419; SCRAPPED 2007-11; 47551; & 47552; SCRAPPED 2006-11; 47003; 47004; 47072; 47148; 47203; ST DHL NETWORK OPS 2008-12. FREIGHTER.
4 DC-9-32 (JT8D-7B HK). 47009; 47364; W/U AT GRISSOM AFB 2007-07. 45927; WFU AT CINCINNATI; 46031; SCRAPPED 2007-06; 46041; 46093; 47084; 47176; 47314; ALL WFU AT CINCINNATI; 47317; SCRAPPED 2007-11. 47257; ST DHL 2009-04. 27084; 47176; PARTED OUT 2009-12. FREIGHTER.
3 DC-9-32F (JT8D-7B HK). FREIGHTER.
6 DC-9-33 (JT8D-7B HK). FREIGHTER.
21 DC-9-41 (JT8D-15 HK) (INCL 47760; 47768; EX-(JAS), 49724, EX-(SAS); 740-47628, EX-(SAS); 47596, EX-(SAS), (TOM) LSD 1999-04) (N976AX); 47631, EX-(SAS), 1999-09. 47616 RTT LESSOR 2002-12. 47497; ST DHL NETWORK OPS 2008-12. 47494; ST DHL 2009-02. 47760; 47781; PARTED OUT 2009-12. 47499; 47510; 47623; & 47759; ST DHL 2010-04. FREIGHTER.
0 NAMC YS-11-100, 1 RETIRED. FREIGHTER.
Click below for photos:
ABX-SVP FLT OPS
ABX-SVP GRD OPS
ABX-VP AIR PARK SVCS
ABX-VP GENL COUNSEL
ABX-VP REG COMPL
JOHN STARKOVICH, (ABX)
JOE HETE, PRESIDENT, CHIEF EXECUTIVE OFFICER (CEO) (2003-05) & CHIEF OPERATIONS OFFICER (COO) (2000-08) MOVED TO PRESIDENT & (CEO) OF THE AIR TRANSPORT SERVICES GROUP (ATSG) (TIN) (2013-03).
QUINT TURNER, VP ADMINISTRATION & CHIEF FINANCIAL OFFICER (CFO) (2004-12).
MIKE GEDDES, SENIOR VP FLIGHT OPERATIONS, EX-(AAT) (2008-05).
BOB BOJA, CHIEF PILOT/SENIOR DIRECTOR FLIGHT CREW OPERATIONS.
TOM POYNTER, SENIOR VP GROUND OPERATIONS.
DENNIS MANIBUSAN, SENIOR VP MAINTENANCE & ENGINEERING, MOVED TO PRESIDENT OF (ATI) (TIN) 2013-03.
DAVID BILLINGS, SENIOR VP & CHIEF INFORMATION OFFICER (2000-11).
CARL RODRIGUEZ, SENIOR VP FIELD SERVICES AREA III.
JACK BUNYAN, SENIOR VP FIELD SERVICES AREA IV.
RICHARD CORRADO, SENIOR VP MARKETING.
TERRY SCHERZ, VP MAINTENANCE (firstname.lastname@example.org)
ROBERT GRAY, VP FLIGHT OPERATIONS, REGULATORY COMPLIANCE & GOVERNMENT AFFAIRS.
JOE PAYNE, VP GENERAL COUNSEL & SECRETARY.
JOHN JESSUP, VP MATERIALS MANAGEMENT & CONTRACTS.
GENE RHODES, VP HUMAN RESOURCES (HR).
RUSTY SMETHWICK, VP AIR PARK SERVICES.
MIKE EBERT, SENIOR DIRECTOR LINE MAINTENANCE.
BRADY TEMPLETON, SENIOR DIRECTOR LINE MAINTENANCE STATIONS.
THIERRY DERRIAN, SENIOR DIRECTOR MAINTENANCE PLANNING & RECORDS (email@example.com).
MIKE SHARBAUGH, SENIOR DIRECTOR QUALITY CONTROL (QC) (firstname.lastname@example.org).
JEFF BECKER, DIRECTOR ENGINEERING (email@example.com).
BILL BROWN, DIRECTOR TECHNICAL SALES.
BOB ZITNEY, MANAGER QUALITY ASSURANCE (QA) & CHIEF INSPECTOR (firstname.lastname@example.org).
DAVE MARTIN, MANAGER CONTRACTS & WARRANTY.
JOHN PAUCIULO, MANAGER MAINTENANCE PLANNING.
DON AKE, MANAGER MAINTENANCE PROGRAMS.
DAN HENDERSCHOTT, MANAGER POWERPLANT & SYSTEMS ENGINEERING.
GALEN DEEDS, MANAGER AVIONICS/ELECTRICAL ENGINEERING (2000-12).
MARY ARABI, MANAGER STRUCTURES ENGINEERING.
JIM NEWELL, MANAGER AIRFRAME MAINTENANCE/MODIFICATION SERVICES.
DAVE BUCHER, MANAGER POWERPLANT REPAIR SERVICES (1999-03).
BRAD HEATH, MANAGER FLEET SERVICE ENGINEERING (2000-12).
SCOTT MEREDITH, 767 AREA SUPERVISOR, EX-BOEING FIELD SERVICE REP (1999-05).