ABX Air, the US cargo airline, has announced that its subsidiary, ABX Cargo Services, has beenawarded a new four-year contract to manage the U.S. Postal Service’s (USPS) terminal handling
services in Indianapolis, Ind.The contract is the third such award this year from the USPS for ABX. In July, ABX wasawarded a contract to manage the USPS sort center in Dallas, Texas; in August, ABX was selected tomanage the USPS sort center in Memphis, Tenn.
ABX has managed the USPS sort facility in Indianapolis since 2004. The new four-year contractexpands ABX’s role there through October 2010 and is projected to generate $17.7 million inadditional revenues for ABX over its term.
Under each of its USPS hub contracts, ABX will be compensated at a firm price for its fixedcosts, plus an additional amount based on the volume of mail handled at each facility. Eachcontract provides for two, two-year extensions at the discretion of the U.S. Postal Service.
“Our selection to manage three hubs for the Postal Service says a lot about the reputationfor quality and efficiency we have earned over 25 years in this business,” stated Joe Hete,President and CEO of ABX Air. “We have a proven, tested business model that we intend to follow ineach USPS operation, making adjustments for local conditions as needed.”
ABX Air operates a fleet of more than 100 aircraft out of Wilmington airport, Ohio, and at 18hubs throughout the United States. In addition to providing airlift capacity and sort facilitystaffing to DHL, ABX Air provides charter, maintenance and package handling services to othercustomers.
