For Your Information

FILES

Apr.2, 2010 - FYI - Issue 24 - For Your Information [20kb pdf]

Oct. 9, 2009 - FYI - Issue 23 - For Your Information [23kb pdf]

July 23, 2009 - FYI - Issue 22 - For Your Information [157kb pdf]

July 10, 2009 - FYI - Issue 21 - For Your Information [60kb pdf]

July 2, 2009 - FYI - Issue 20 - For Your Information [89kb pdf]

May 29, 2009 - FYI - Issue 19 - For Your Information [169kb pdf]

May 8, 2009 - FYI - Issue 18 - For Your Information [101kb pdf]

April 29, 2009 - FYI - Issue 17 - For Your Information [131kb pdf]

April 24, 2009 - FYI - Issue 16 - For Your Information [93kb pdf]

April 1, 2009 - FYI - Issue 15 - For Your Information [19kb pdf]

March 20, 2009 - FYI - Issue 14 - For Your Information [21kb pdf]

Feb. 27, 2009 - FYI - Issue 13 - For Your Information [20kb pdf] 

Feb. 18, 2009 - FYI - Issue 12 - For Your Information [17kb pdf]

Nov. 19, 2008 - FYI - Issue 11 - For Your Information [25kb pdf] 
Sept. 23, 2008 - FYI - Issue 10 - For Your Information [25kb pdf] 

Aug. 19, 2008 - FYI - Issue 9 - Updates and Reduction Info [25kb pdf]

July 21, 2008 - FYI - Issue 8 - For Your Information [238kb pdf]

July 2, 2008 - FYI - Issue 7 - Hangar Talks in Brief [66kb pdf]

June 24, 2008 - FYI - Issue 6 - Frequently Asked Questions [27kb pdf]

June 11, 2008 - FYI - Issue 5 - Frequently Asked Questions [19kb pdf]

June 5, 2008 - FYI - Issue 4 - Latest Information [30kb pdf]

June 4, 2008 - FYI - Issue 3 - Frequently Asked Questions [20kb pdf]

June 3, 2008 - FYI - Issue 2 - Phase 1, Info, & Reminders [36kb pdf]

May 30, 2008 - FYI - Issue 1 - Frequently Asked Questions [24kb pdf]

QUICK FACTS FOR ABX EMPLOYEES re: DHL Announcement - May 28, 2008

• DHL gave us their plan May 27 around 5 p.m. Joe Hete and John Graber met with Ken Allen DHL CEO USA· 

• The DHL plan has two phases:

  • In Phase 1 DHL intends to reduce its lift requirements by 39 DC-9s from the ABX fleet over the next 12-18 months.

  • Phase 2 of DHL’s plan involves negotiations with a U.S. air and ground freight integrator to outsource its air express network. The regional ground hub network will transition to DHL. The time period for Phase 2 is dependent on the negotiations.

• DHL’s plan will have a significant impact on ABX Air. We are going to be reducing our workforce, and every employee group will be affected.

• This news is unsettling to all of us. While we have been expecting changes to the U.S. network for some time, we did not expect changes of this magnitude.

• We are working very hard to get you the answers you deserve. We know you will have questions. Please ask your supervisor, contact Employee Relations, or send your questions directly to our CEO at Joe.Hete @abxair.com, 
  our President at John.Graber @abxair.com, or 
  our Vice President of Human Resources at John.Starkovich @abxair.com.

• We will communicate frequently through your management and official ABX Air communications channels.

• We promise to support you through these changes.

• Now more than ever, we all have to work safely, watch out for each other, and do our jobs.

EXPECTATIONS OF ABX EMPLOYEES

• BE SAFE

• ASK QUESTIONS

• DO YOUR JOB

• WATCH OUT FOR EACH OTHER

• TRY NOT TO SPECULATE

• BE KIND

YOU ASKED

Under the recently announced DHL plan, 39 ABX Air DC-9 aircraft will be removed from service over the next 12-18 months, beginning in July. Additionally, DHL is negotiating with UPS to handle all of DHL's air express freight needs. This deal is not complete, nor do we have an implementation timeline. The regional ground hub network will transition to DHL.

Below are answers to some of the frequently asked questions you may have about this announcement. We are still gathering information, and we will provide answers to additional questions in future communications. While we all have many questions and concerns, it is still crucial that we continue to focus on working safely, doing our jobs right, and taking care of each other.

Q1. What impact will this decision have on ILN and Wilmington?
A1. It is too soon to know for sure what will happen to ILN in the long run, but as long as we have agreements in place, ABX Air plans to remain a tenant of the air park and to continue serving our customers. That said, if DHL's plan goes as they expect, it is likely that most of DHL's operations will move from ILN to another location operated by UPS in 2009. As a result, the local economy will suffer the loss of a large number of jobs--from DHL, its direct vendors such as ABX Air, and from other businesses dependent upon the operations of the air park. In the meantime, we all must continue to do our jobs safely and to the best of our ability.

Q2. Will state or local officials pursue any legal recourse to prevent the loss of jobs at ILN?
A2. We don't know what course of action officials might take, or whether they are able to prevent the loss of jobs.

Q3. Is there a timeline for when workforce reductions will take place? 
A3. ABX Air does not have enough information yet to determine when or where reductions in our workforce will occur. Rest assured that when we know, we will make every effort to communicate these details as quickly and as accurately as we can. 

Q4. What will be the criteria for determining who is let go?
A4. We believe that all of our employees deserve to be treated fairly. ABX has a Reduction In Force Policy and an Hourly Layoff Policy in place to help in this regard. These policies are available at www.myabx.com/employee policy.

Q5. What happens to my medical insurance if my job is eliminated?
A5. If your position is eliminated, your medical benefits will continue through the last day of the month you work or receive severance (if applicable). You would then have the opportunity to purchase an extension of coverage under the COBRA provision of the plan. 

Q6. What happens to my vacation time if my job is eliminated?
A6. Your unused earned and accrued vacation would be paid out to you. Vacation pay does not extend your medical benefits. 

Q7. What happens to my 401(k) plan if my job is eliminated? 
A7. After your employment ends, you have three options:

• You may directly rollover the vested balance to another qualified 401(k) or IRA. Under this option you do not have to pay taxes on the rollover. 

• You may take a lump sum payment of your vested balance. Under this option, your payment would be taxable. If you are under 59½ years old, an additional IRS 10% penalty tax would be owed. You can avoid this by choosing option 1. 

• If your vested balance is more than $1,000 you may leave the money in the 401(k) plan.

For more information about rollovers or payouts, you may call Fidelity Investments at (800) 835-5095 or visit www.401k.com. Keep in mind that Fidelity cannot process any rollover or payout while you are still employed by ABX Air. 

Q8. How can I stop or change my 401(k) contributions? 
A8. Contact Fidelity Investments at (800) 835-5095 or visit www.401k.com. Changes and stops are processed within one or two payroll cycles. 

Q9. What happens to my Profit Sharing Plan if my job is eliminated? 
A9. The Profit Sharing Plan applies only to employees hired before January 1, 1999. If you have a vested balance, the same options are available as in the 401(k) plan. After your employment ends, information will be sent to your home address on how to request a payout or rollover. ABX Air cannot process any rollover or payout while you are still employed by ABX Air. 

Q10. What happens to my pension benefits if my job is eliminated?
A10. For employees who are participants in the Retirement Income Plan (generally those hired before Sept. 1, 2005), if you are vested, you would be eligible to receive a benefit when you reach retirement age of 65. If you have 10 or more years of service, you can also elect to take early retirement payments when you reach age 55 or later. The ABX Air Benefits Department is preparing information about retirement benefits for all vested participants, including an estimate of benefits earned to date. More information will be communicated in the near future.

For eligible employees hired on or after Sept. 1, 2005, a separate account was established in your 401(k) plan. You can see your account balance at www.401k.com or by calling (800) 835-5095.

Q11. What help will be provided to me if my job is eliminated?
A11. ABX Air is looking at ways to help those employees whose positions are eliminated. Severance packages, retraining assistance, and career transition services have all been discussed. However, it will take time to work out the details of what can be offered. We will share that information as soon as we can.

Q12. What will happen to ABX Air as a company if DHL's plan goes through?
A12. ABX Air expects to remain in business even if DHL's plan goes through, though ABX may end up becoming a much smaller company. Such a change will take some time, since DHL cannot rearrange its network overnight. Meanwhile ABX Air will continue to provide reliable, cost-effective services to DHL for as long as it is able to do so profitably.

Q13. What will happen to the regional hubs under DHL's plan?
A13. DHL has indicated that they will assume control of the hubs and continue to operate them as part of their ground network. We do not have a timeline for such transitions. For the time being, the hubs will continue to operate as they always have.

Q14. What will happen to the postal hubs?
A14. ABX Air expects to continue operating the postal hubs. We will work aggressively to renew our contracts with customers such as the U.S. Postal Service as well as pursue new contracts.

Q15. What will happen to the Night Sort?
A15. DHL's plan calls for UPS to handle all of its express, deferred, and international package shipments within the U.S. Most likely this means the freight normally handled by our Night Sort will instead be routed through the existing UPS network, and the Night Sort will no longer be needed at ILN. We do not have a timeline for this transition.

Q16. What will happen to the Day Sort?
A16. DHL Chief Operating Officer John Cameron indicated that DHL will need ABX Air to continue operating a Day Sort at ILN for the foreseeable future, but until we have a better understanding of DHL's plan, we cannot say for certain what that operation will look like.

Q17. Can ABX submit another bid to DHL on the outsourcing of their air express network?
A17. Earlier in the year we proposed a plan that would have resulted in ABX Air supporting DHL to a greater extent by becoming its sole airlift provider. DHL declined the proposal at that time. DHL has not solicited any bids nor has it indicated that it would consider another one from ABX Air. However, ABX Air will continue to compete for DHL's business.

Q18. Can we move the DC-9s into charter operations?
A18. Unfortunately the demand for that type of aircraft in the charter segment is not strong enough to justify putting those planes into service there. A DC-9 costs about $2,900 per hour to operate, so customers do not find it a cost-effective option.

Q19. Does UPS have enough airlift capacity to handle DHL's freight?
A19. We do not know whether UPS has enough airlift capacity to handle DHL's freight.

Q20. Can ABX Air take over the Airborne Express name? Can ABX Air start building a delivery network?
A20. As was evident in DHL's case, trying to gain market share in the domestic express delivery market is very difficult and expensive. ABX Air is not in a position to compete in that business.

Q21. How many positions will be affected by the reduction of the 39 DC-9s?
A21. We estimate that around 500 employees may be affected, most of them pilots, aircraft technicians, and support personnel. We will not be able to give details of personnel reductions until we know DHL's full schedule of DC-9 reductions.

Q22. Will DHL or UPS be offering positions to any ABX Air employees at ILN?
A22. We have not seen anything to indicate that such an offer will take place.

Q23. How much notification will employees be given before their positions are eliminated?
A23. We hope to provide as much notice as possible to employees affected by reductions.

Q24. What is the benefit of staying with ABX until my services are no longer needed?
A24. ABX Air is working on a retention package to encourage employees to stay with ABX until their position is eliminated.

Q25. Will early retirements, voluntary lay-off, or severance packages be offered?
A25. We are evaluating options that may help lessen the impact of workforce reductions. At this point, we don't have any details, but when we do, we will share them with you.

Q26. Can I apply for Unemployment Compensation if my job is eliminated?
A26. The decision to award unemployment compensation is made by the state agency, and not ABX. The state makes such decisions based on individual earnings and eligibility. ABX will supply the state with factual information regarding your separation and, if you stay through the transition period, will not contest your application for unemployment benefits.

Q27. Why is ABX still hiring if there will be a reduction of staffing coming?
A27. ABX Air must continue to run a top-notch operation based on our current ACMI and Hub Services agreements. To do so, we must meet the day-to-day staffing needs required by a large organization. Keep in mind that DHL's deal with UPS is not finalized, and we need to provide the best possible service as we attempt to keep DHL's business and secure additional business from other customers.

Q42. Where can I find the cost and other details of COBRA coverage?
A42. Information about your COBRA rights can be found in the Benefits Handbook under the COBRA section. (Benefits Handbooks are available online at www.myabx.com/benefits/spd.htm.) In general, employees who separate from the Company can continue the health benefits under COBRA for up to 18 months. The cost of the COBRA coverage varies depending upon the plan elected and family status. Costs range from $281.51/month for single coverage under the Health Savings Account PPO Plan to $1,240.54/month for full family coverage under the Enhanced PPO plan to $1,561.56 for family coverage under the Pilot’s Traditional Plan. Many common FAQs about COBRA can be found on the U.S. Department of Labor web site at www.dol.gov/ebsa/faqs/faq_consumer_cobra.html.

Q43. Is ABX Air considering any options for discounting or extending medical benefits (beyond COBRA) for those who lose their jobs?
A43. We are discussing options with United Healthcare regarding individual health insurance policies that could be offered to former employees in lieu of or after their COBRA period expires. If these details are finalized, we will announce more information about these options.

Q44. What happens to employees on disability if their position is eliminated?
A44. Generally, if a person receiving disability benefits had their position eliminated, the disability benefits would continue as long as the person continued to meet the definition of disability.

Q45. How can I obtain my medical records from the Healthcare Center?
A45. Individuals can request that their medical records be transferred to another physician by completing an authorization form that is available from the Healthcare Center. You will need to provide the name, address, and phone number of the new physician. You may also request copies of your medical records sent directly to you by the same process. Please allow two to three business days to process a request.

Q46. How long will the Healthcare Center, dental unit, and pharmacy remain open, and who will be able to use them?
A46. We plan to keep the Healthcare Center and pharmacy open as long as it continues to make financial sense to do so. As the Company downsizes it is likely that the Healthcare Center will scale down accordingly.

Q47. Will early retirement be an option?
A47. ABX Air certainly will ask if there are any volunteers who wish to give up their positions first, and employees are eligible to take early retirement if they are at least age 55 and have at least 10 years of service with the Company. However, we do not expect to be able to offer early retirement incentives. It is important to preserve the assets of the retirement plan to provide the benefits that have already been promised.

Q48. How much of our Profit Sharing Plan is tied up in ATSG stock?
A48. There is no ATSG (formerly ABXA) stock in the Profit Sharing Plan. All shares of the Company's stock in the Plan were sold early last year for an average price of $7.02/share and the money was reinvested in the other investments in the Plan. Currently about 55 percent of the Profit Sharing plan's assets are invested in a broad diversified portfolio of stocks. Forty percent is invested in diversified portfolio of bonds and about five percent is invested in a diversified real estate portfolio.
Q49. How can I find out my Profit Sharing Plan balance?
A49. Statements were mailed to all participants last March. In addition the Benefits Department is preparing retirement information statements which will include the Profit Sharing Plan balance. We expect to be able to send out these new statements within the next 60 days. Employees should make sure that their current address is on file with the Company. The address that prints on your paycheck is the official address we have for you. If you need to update the address, you can use Employee Self Service to update your address. Note that only non-bargaining employees hired before Jan. 1, 1999 have a Profit Sharing Plan balance.

Q50. If I am eligible for a Profit Sharing Plan payout, what are the tax penalties? What happens to my current loan against my 401(k) account if my job is eliminated? Will I have to repay it?
A50. The tax rules are the same that apply to 401(k) plans, i.e. the payout is subject to ordinary income tax. In addition there is a 10% penalty tax if the person is under the age of 59½. These taxes can be avoided by rolling over the account to an IRA or a new employer's 401(k) plan.

Q51. What happens to my current loan against my 401(k) account if my job is eliminated? Will I have to repay it? Will I be penalized if I can't?
A51. Your loan must be repaid, or it will default. However, the loan would not go into default until 90 days after the last payment. In the event of default, the outstanding loan balance will be treated as a taxable distribution. For further information, please contact Fidelity Investments at (800) 835-5095 to discuss loan repayment with a Fidelity representative.

ABX Air as the Plan Administrator does not charge penalties on the loan defaults. Here's what happens with loans: As long there is a paycheck, we will deduct the loan repayment amount until the loan is repaid. This includes any severance pay. If the employee is laid off or separating from employment and will no longer have a paycheck, the employee has several options:

Q54. Will I receive a payout for my sick time if my job is eliminated?
A54. No. Sick time is provided by the Company to help you through a period of illness so that you can return to work with little or no disruption in your pay. It is not intended as a source of additional income for those who have been fortunate enough not to suffer periods of illness.

Q55. Will a voluntary layoff option be offered?
A55. We intend to allow voluntary layoffs when and where appropriate.

Q56. What kind of severance will be offered, and who will be eligible?
A56. We are still working on the details of a retention program that will encourage employees to remain at ABX Air as long as their positions are needed and then aid them as they transition to new employment. We anticipate that severance will be offered to the full- and part-time non-bargaining unit employees who continue working until a date at which their positions are eliminated. If an employee resigns employment with ABX Air or is terminated for cause prior to the release date, he or she will not be eligible for severance. For example, if an employee accepts other employment with another company prior to his or her release date, severance will not be offered.

Large numbers of severances are not expected in the regional hubs. Typically those employees that were not offered DHL employment when hubs have moved from ABX Air to DHL have been offered severance payments. However, details of hub transitions have not yet been finalized.

Q57. If I accept a severance package, will it affect my ability to receive Unemployment Compensation?
A57. Normally, acceptance of a severance package delays Unemployment Compensation but otherwise has no impact.

Q58. Are severances subject to the same taxes and deductions as paychecks?
A58. Yes. If you need to change your tax withholding you can do so online using Employee Self Service: www.MyABX.com/selfservice.

Q59. What retraining and job placement assistance will be provided if my position is eliminated?
A59. ABX Air intends to help those employees whose positions are eliminated. Resume and interview preparation, job search help, occupational training, and financial counseling are among the types of services being considered. We are working closely with state agencies to make the services available quickly and conveniently. It is our plan to begin making some of these services available while you are still employed.

Q60. What will happen to my tuition reimbursement if my position is eliminated in the middle of a school term?
A60. At the successful conclusion of the class, ABX Air will reimburse tuition for pre-approved course(s) in process at the time an employee is released.

Q61. Will the Family Fun Day and other EAFB events still take place?
A61. Yes, EAFB-sponsored events, including the Family Fun Day, will continue as planned.

Q62. Why are improvements to the air park continuing? Why is new equipment still arriving?
A62. Upgrades, replacement, and maintenance of facilities and equipment will continue wherever it is important for safety or operational reasons.

Q63. Does DHL own any of our aircraft?
A63. DHL does not own any of the aircraft operated by ABX Air.

Q64. Does DHL own the air park?
A64. Yes, DHL owns the air park, though the original contract with Airborne Freight provided for the state to reclaim the property if it were no longer being operated as an airport.

Q65. Will ABX Air be able to perform Maintenance Repair Organization (MRO) work at ILN?
A65. Our intention is to continue offering aircraft maintenance and repair services to third party customers using the facilities at ILN for as long as possible. We currently have a lease on the maintenance facilities until 2010.

Q66. Will there be pay cuts?
A66. Some pay and benefit reductions may be necessary in order for ABX Air to be competitive in the ACMI and MRO industries. At this point, it's too soon to guess what those pay and benefit reductions would look like.

Q67. Will upper management take pay cuts if everyone else does, too?
A67. Yes.

Many of the answers to these questions are contingent upon DHL’s negotiations with UPS. Benefits information is specific to non-bargaining unit employees.

NEWS RELEASES

SAFETY NOTE

The announcement from DHL makes clear that we have a long and difficult road ahead of us. During this time, it is important that you stay focused on our number one priority: Safety.

Workplace distractions that stem from sources such as unsettling news creates the potential for unsafe events with devastating effects. While we can’t ignore the changes occurring around us, please don’t allow these distractions to cause injury to yourself or a coworker. Please ensure that you are vigilant in the work that you perform, and set an example by taking all necessary precautions to protect yourself and your fellow employees.

Our commitment to you is and always will be to provide you with a safe workplace where no person will be put at risk to achieve our goals.