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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