ABX Air (NASDAQ: ABXA) announced today that it has agreed to provide two of its 767-200 freighter aircraft in support of DHL’s U.S. air network during 2008, extending further its position as the primary provider of domestic airlift to DHL.
The agreement covers two 767-200 freighter aircraft that are not among ABX Air’s 29 767s already dedicated to DHL service. One of the two 767-200s will initially be operated in support of DHL through June 2008 with an opportunity to extend the term, and the second for the full year. One of them has operated on behalf of DHL for most of 2007 under an agreement that expires at the end of this year.
Starting in 2008, DHL will pay ABX a fixed monthly fee for the aircraft and certain airframe maintenance expenses. Additionally, DHL will reimburse ABX Air with a mark-up for flight crew, maintenance and other expenses associated with operating the aircraft consistent with the terms of its ACMI Service Agreement.
“We are pleased that DHL has asked us to expand our support of its air network,” said Joe Hete, President and CEO of ABX Air. “While we could have operated these highly efficient aircraft at higher margins for other customers, we believe the right thing to do is to support our principal customer in its efforts to compete more effectively in the U.S. At the same time, we appreciate DHL’s affirmation last month that it will continue our relationship through the current terms of our commercial agreements, and that it will discuss with us a broad range of topics that could further benefit that relationship. As we expand our business with other customers and into other markets, we remain proud to serve as DHL’s largest domestic airlift provider, and we are proud of our fleet’s continued outstanding record of reliability.”
ABX Air (www.abxair.com) is an air cargo services provider operating out of Wilmington, Ohio, and 14 hubs throughout the United States. In addition to providing airlift capacity and sort facility staffing to DHL, ABX Air is a Part 121 operator and holds a Part 145 FAA Repair certificate. It provides charter, maintenance and package handling services to a diverse group of customers. ABX Air is the largest employer in a several-county area in southwestern Ohio.
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. ABX Air, Inc.’s actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, ABX Air’s ability to maintain cost and service level performance under the commercial agreements with DHL, reductions in the scope of services under those agreements and other factors that are contained from time to time in ABX Air’s filings with the U.S. Securities and Exchange Commission, including ABX’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on the Company’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. ABX undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.