ATSG receives notification of reduction in DHL's services

Airline Industry Information, Dec 15, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

Air Transport Services Group Inc (ATSG) (NASDAQ: ATSG), a provider of air cargo transportation and related services, has reported that its subsidiary, ABX Air, has been informed that DHL will discontinue a substantial portion of its US-based domestic express package operations from 4 January 2009.

DHL, ABX Air's principal customer, plans to close its sorting operations at its US regional hubs and all domestic daytime package sorting operations, except a Sunday day sort operation. Night-time sorting operations will continue in Wilmington, Ohio.

As a result of these closures ABX Air will reduce its staff by around 1,900 positions, including approximately 1,000 positions in Wilmington. These reductions will affect all departments of the company. Affected employees will be notified soon.

ABX Air also received a notification from DHL stating that it will no longer require the use of ABX Air's DC-9 aircraft after January 2009.

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