May 23, 2008 at 18:14 PM EDT
ALPA Questions CCIA Management's Ability to Run Airline Effectively

TOLEDO, Ohio, May 23 /PRNewswire-USNewswire/ -- Pilots who fly for Capital Cargo Int'l Airlines (CCIA) question management's effectiveness with respect to new aircraft integration. CCIA management announced the implementation of a new Boeing 757 program in mid-2007 with the assurance of operating the new aircraft in February 2008. Over three months past the date promised, the B-757 aircraft is still not producing revenue. Pilots worry about the airline's lost productivity, inefficient use of pilots, and customer dissatisfaction which may impact the company's future.

"When the company announced its 757 plans, the Air Line Pilots Association, Int'l (ALPA) was quick to offer its resources to work with management to ensure a successful and timely launch of the new aircraft," stated Captain CJ Johnson, chairman of the Capital Cargo unit of ALPA. "To our amazement, our offer of assistance and ALPA's resources were rejected by CCIA management. We remain available to assist with ensuring proper manuals for the FAA or in any other way needed since the delays are costing hundreds of thousands of dollars per month in lost revenue and overhead costs."

Management stated publicly at an investor's conference in February that the aircraft was in proving runs and at the ABX Holdings shareholders' meeting this month that the aircraft would be on the operating certificate as of last week. This ineffectiveness is not a cost-effective measure in the cargo freight industry because delays equate to loss of revenue. Management does not tolerate such behavior by crewmembers. Their unreliability in this matter should not go unnoticed.

"The B-757 program is a great opportunity to provide success for our airline," said Captain Johnson. "But how much of that opportunity is lost to the crewmembers and shareholders alike because of our management's lack of accountability? We can only wonder if this behavior is being mirrored in our contract negotiations as stall tactics are being utilized on management's side of the table."

CCIA pilots are working under a contract that became amendable in 2004 with three tentative agreements voted down since then. ALPA remains hopeful that negotiations will progress to provide crewmembers with a fair industry contract. Crewmembers trained to fly the B-757 since January would also like to see the issues holding up revenue services resolved soon, as they have been unutilized for months and most crewmembers in the program will need retraining due to currency issues.

Air Transport Service Group, Inc. (NASDAQ:ABXA) is CCIA's holding company. CCIA is an Air, Crew, Maintenance, and Insurance carrier that provides airport to airport transportation services both domestically and internationally. Their main customers are BAX Global and DHL.

Founded in 1931, ALPA is the world's largest pilots union representing 55,000 pilots at 40 airlines in the U.S. and Canada, including 115 cockpit crew members at CCIA. Visit the ALPA Web site at www.alpa.org.

Source: Air Line Pilots Association, International

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