Tag: ABX Air

DHL streamlining to impact ABX Air revenues

ABX Air, the one-year-old air cargo airline spun off from courier Airborne Express following the merger with DHL in 2003, said it expects to lose USD86 million to USD96 million in gross revenue in 2005 as a result of route restructuring by primary customer DHL. Airborne was forced to spin off its in-house airline to comply with U.S. corporate citizenship laws for owning domestic airlines. DHL retained ABX as its main air carrier, along with Astar Air Cargo, formerly DHL Airways. DHL notified ABX that it no longer would require airlift on 22 routes provided by 26 aircraft. Seven of the 26 aircraft are to be removed from service in January, with the remaining 19 aircraft removed by the end of 2005. The projected revenue reductions include money the airline made from marking up expenses to operate its planes. ABX said annual net income would take a hit in the range of USD800,000 to USD1.5 million.

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ABX Air to staff and operate seven new DHL regional sort centers in US

ABX Air have announced that it will be staffing and operating seven new regional sort centers for DHL. The first facility will be located in Denver, Colorado, and is scheduled to begin operating on September 10, 2004. DHL has yet to announce the location of the six other new sort centers, all of which are expected to be operational by year-end.

ABX Air will initially employ 26 people at the new DHL facility in Denver, bringing in temporary employees as needed to accommodate increases in volume during the holiday season. The facility will handle a variety of shipments, including letter and parcel items, palletized and container freight. DHL is investing USD3 million in the 74,800 square foot facility, which will operate six days a week and have a sort capacity of 4,000 letter pieces per hour/3,500 parcels per hour.

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ABX Air chief wants DHL operations consolidated in Ohio

The top executive of a company that operates overnight package delivery flights near here says he hopes another air carrier opts to move similar operations to Wilmington.

The consolidation would make sense because the air freight hub near Wilmington run by ABX Air Inc. can handle more packages than DHL’s operations at the Cincinnati/Northern Kentucky International Airport, said Joseph C. Hete, ABX’s president and chief executive.

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Airborne Inc criticizes airline ownership proposal

Airborne Inc. lashed out at rival package carriers United Parcel Service and FedEx Corp. over a proposal being considered by the U.S. Senate to toughen ownership rules for air carriers. “It is no surprise that they would attempt to protect their duopoly in any way they can,” Airborne said in a statement Monday. “Their attempts to delay our transaction will limit opportunities for American workers and deny choice to American consumers.” Representatives of UPS and FedEx denied that they are trying to quash competition.

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