ABX Air wins USPS deals to compensate DHL decline

ABX Air, Inc. announced today that its subsidiary, ABX Cargo Services, has been awarded the contract to manage the U.S. Postal Service’s terminal handling services at its Surface Transfer Center (STC) in Dallas, Texas.

The contract calls for ABX to be compensated at a firm price for its fixed costs, plus an additional amount based on the volume of mail handled. Based on projected volumes, ABX Air anticipates that its revenues under the contract could total about USD 20 million during the four-year term of the contract. This contract provides for two, two-year extensions at the discretion of the U.S. Postal Service.

“ABX Air has 25 years of experience managing hub operations for Airborne and now DHL,” stated Joe Hete, President and CEO of ABX Air. “We have developed excellent work processes, reporting systems and contingency planning as part of a uniform business model that could be transferred to other USPS operations, should such opportunities arise. For now, we are looking forward to expanding our business relationship with the U.S. Postal Service beyond the on-demand airlift capacity contract currently in place.”

ABX Air is a cargo airline with a fleet of more than 100 aircraft that operates out of Wilmington, Ohio, and 18 hubs throughout the United States. In addition to providing airlift capacity and sort facility staffing to DHL, ABX Air provides charter, maintenance and package handling services to a diverse group of customers. ABX is the largest employer in a several-county area in southwestern Ohio.