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DHL to Reduce ABX Air Services

To now, ABX Air has provided cost-plus services at DHL’s large Wilmington, OH, hub and 18 other regional sorting hubs throughout the country. The services include package handling, sorting, warehousing, line-haul logistics and maintenance services. The airline has a second contract with DHL -- an aircraft, crew, maintenance and insurance agreement.

ABX became an independent public company effective August 16, 2003, as a result of the separation from its former parent company, Airborne, Inc. ("Airborne"), which had been acquired by DHL Worldwide Express.

The two entities have agreed that ABX Air will not be required to operate or manage DHL’s Allentown hub – to be the largest of the its regional hubs in the U.S. – after it opens in the third quarter of this year.

With the low mark-ups ABX Air was able to charge DHL under the old agreement, there is a good opportunity to make up for the loss in net earnings and business volumes through other commercial opportunities and companies.

ABX Air’s revenues from customers other than DHL grew by 130% in 2004 and 27% in 2005. It’s anticipated the transition will be completed by the end of the second quarter of 2006.

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