DHL Express will continue using ABX Air for airlift in the USA until mid-2009 despite its planneddeal with UPS and its exit from the US domestic market in January 2009, which will result in
thousands of job losses.ABX Air parent company Air Transport Services Group (ATSG) announced it had been officiallynotified that DHL Express would discontinue “a substantial portion” of its US-based domesticexpress package operations effective January 4, 2009. DHL intends to close its sortingoperations at its US regional hubs, and all domestic daytime package sorting operations except aSunday day sort operation on that date. Night-time sorting operations will continue in Wilmington.
The closure of these operations will result in the reduction of approximately 1,900 ABX Airpositions, including about 1,000 positions in Wilmington, Ohio, ATSG said. DHL also notified ABXAir that it will no longer require the use of ABX Air’s DC-9 aircraft after January 2009.
“We have known that this day was coming since DHL announced on November 10 that it would pullout of the US domestic express package market, but it is still a very difficult time for our loyalABX Air employees who have worked very hard for DHL and its customers,” said Joe Hete, President& CEO of Air Transport Services Group.
“Despite this action, however, ABX Air is still in the cargo airline business. DHL hasindicated that it wants ABX Air to continue operating most of our Boeing 767 aircraft currentlyflying under the DHL contract, at least through June 2009,” Hete added. The cargo airline dedicates27 B767 aircraft to its DHL operations.
Last month, Hete said that ABX Air, which generates about 75% of annual revenues from groundhandling and flights for DHL, would downsize by about 75% and shed some 7,000 jobs once its workfor DHL came to an end next year. But the airline might continue to operate “some” flights for DHLExpress until June 2009 pending agreement and implementation of DHL’s planned airlift deal withUPS, he said at the time.
DHL Express CEO John Mullen stressed at the November 10 announcement of the US domesticmarket withdrawal that he still aims to achieve an airlift deal with UPS despite the much lowervolumes that DHL Express USA will generate once it repositions as an international express providernext year. But he admitted that the reduced volumes could be handled by “one or either or acombination” of ABX Air and the other current US airlift partner, Astar Air Cargo, if an agreementwith UPS was not achieved.
