ABX Air has agreed to provide two of its 767-200 freighter aircraft in support of DHL’s U.S. airnetwork during 2008, extending further its position as the primary provider of domestic airlift to
DHL. In addition, it completed the acquisition of Cargo Holdings International (CHI), alreadyannounced previously.The agreement covers two 767-200 freighter aircraft that are not among ABX Air’s 29 767salready dedicated to DHL service. One of the two 767-200s will initially be operated in support ofDHL through June 2008 with an opportunity to extend the term, and the second for the full year. Oneof them has operated on behalf of DHL for most of 2007 under an agreement that expires at the endof this year, ABX Air said.
Starting in 2008, DHL will pay ABX a fixed monthly fee for the aircraft and certain airframemaintenance expenses. Additionally, DHL will reimburse ABX Air with a mark-up for flight crew,maintenance and other expenses associated with operating the aircraft consistent with the terms ofits ACMI Service Agreement.
“We are pleased that DHL has asked us to expand our support of its air network,” said JoeHete, President and CEO of ABX Air. “While we could have operated these highly efficient aircraftat higher margins for other customers, we believe the right thing to do is to support our principalcustomer in its efforts to compete more effectively in the U.S.
“At the same time, we appreciate DHL’s affirmation last month that it will continue ourrelationship through the current terms of our commercial agreements, and that it will discuss withus a broad range of topics that could further benefit that relationship. As we expand our businesswith other customers and into other markets, we remain proud to serve as DHL’s largest domesticairlift provider, and we are proud of our fleet’s continued outstanding record of reliability.”
Meanwhile, ABX Air has completed its previously announced holding company reorganization andthe acquisition of Cargo Holdings International (CHI), a privately held provider of outsourced aircargo services based in Orlando, Florida, for $332 million in cash and common shares of ABXHoldings, its newly formed parent company.
As a result of the new holding company structure, ABX Air and CHI have become wholly-ownedsubsidiaries of ABX Holdings with a total fleet of more than 135 aircraft, including 48 B767freighters.
