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WILMINGTON, Ohio – April 17, 2009 – Air Transport Services Group, Inc. (NASDAQ:ATSG) said today that its subsidiary ABX Air has been informed by DHL Express that it plans to move its U.S. gateway and national package sorting operations from Wilmington to the Cincinnati/Northern Kentucky International Airport in Hebron, Ky. ABX Air has provided air transport and package sorting services at the air park in Wilmington since 1980, first as a unit of Airborne Express and since 2003 as an independent company, operating under two commercial agreements with DHL. The ACMI Agreement, covering air transport services, renews automatically in August 2010 unless a one-year notice of termination is given by either party. The Hub Services Agreement renews annually in August unless a 90-day notice of termination is given by either party. ATSG said it does not expect the DHL announcement to affect ABX Air’s ACMI Agreement with DHL. ABX Air will work with DHL to support the transition, which is expected to be completed when the Cincinnati-area facility begins operating in mid- to late summer. After the transition, ABX Air flights under the ACMI agreement will operate from the Cincinnati airport. DHL has stated that all former and current employees at the Wilmington air park will be encouraged to apply for positions at the Cincinnati airport. ABX employees impacted by this move will receive the same severance package and assistance programs as employees previously laid-off as a result of the DHL restructuring program.
About Air Transport Services Group,
Inc.
Except for historical information contained herein, the matters
discussed in this release contain forward-looking statements that involve
risks and uncertainties. There are a number of important factors that
could cause Air Transport Services Group's ("ATSG's") actual results to
differ materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, further reductions in the
scope of services that ABX Air is performing under its commercial
agreements with DHL and the rate at which those reductions occur, ABX
Air’s ability to maintain cost and service level performance under its
commercial agreements with DHL, and other factors that are contained from
time to time in ATSG's filings with the U.S. Securities and Exchange
Commission, including its Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. Readers should carefully review this release and should not
place undue reliance on ATSG's forward-looking statements. These
forward-looking statements were based on information, plans and estimates
as of the date of this release. ATSG undertakes no obligation to update
any forward-looking statements to reflect changes in underlying
assumptions or factors, new information, future events or other changes. |
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