ABX Air (ABX)

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ABX Air, Inc. (“ABX”) was formed in 1980 and until Aug. 15, 2003, was a wholly owned subsidiary of Airborne, Inc. (“Airborne”). At that time it became an independent, publicly owned company. The company is an airline providing air cargo transportation and hub services within the United States and to Canada and Puerto Rico.

Since its inception, Airborne has been ABX’s primary customer, accounting for over 98 percent of its annual revenues. ABX assists Airborne in providing domestic express and deferred delivery services to its customers.

The separation of ABX from Airborne was a condition to the merger agreement between Airborne and DHL Worldwide Express B. V. (“DHL”). The merger agreement required Airborne to separate its air operations from its ground operations with the air operations being retained by ABX. Immediately prior to the separation, certain assets and liabilities related to Airborne’s ground operations were transferred out of ABX to Airborne. Immediately following the closing of the transaction, Airborne became an indirect, wholly owned subsidiary of DHL and ABX became an independent, publicly traded company, initially owned by Airborne’s former stockholders.

ABX Air common stock is traded in an over-the-counter market under the symbol ABXA.OB.

For the fourth quarter of 2004, ABX reported revenue of $361.4 million and a net profit of $18.1 million compared to revenues of $274.1 and a net profit of $7.6 million for the fourth quarter of 2003. For the year ended Dec. 31, 2004, ABX reported revenue of $1.20 billion and a net profit of $37 million. FLTops.com members can view a five year profit and loss history by visiting the financial page.

In August 2003, ABX Air Inc. essentially became the airline operation of Airborne Express. Airborne's pilots are represented by the International Brotherhood of Teamsters union. Pilots reached a tentative agreement with Airborne on a new five-year contract that includes job protection, including language that would require its pilots to transfer to another company if the airline were sold, according to the union.

ABX currently has 189 pilots on furlough and plans for the future are currently undetermined.