ABX Air, Inc.: SWOT Analysis & Company Profile by BusinessReview


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									ABX Air, Inc.


ABX Air, Inc.: SWOT Analysis & Company

Reference code: BRTT067CP10-Q4

Published: Dec 2010

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ABX Air, Inc. - SWOT Profile                                                        Page 1
ABX Air, Inc.


ABX Air, Inc. - Company Overview

ABX Air, Inc. (ABX) is airline specializing in express air cargo delivery and logistics services principally for the US and
international customers. ABX Air provides comprehensive airlift capacity, sort facility staffing, flight support and charter
services, components, package handling and a wide range of maintenance and training services for a wide range of
customers. ABX’s other business operations include aircraft maintenance and modification services, aircraft part sales,
equipment leasing and maintenance, mail handling for the United States Postal Service (USPS), specialized services for
aircraft fuel management and freight logistics. The company transports cargo across the US, Europe, Central America,
South America, and Asia. ABX is headquartered at Wilmington (Ohio), the US.

ABX Air, Inc. - Key Facts

ABX Air, Inc., Key Facts

                                  145 Hunter Drive, Wilmington,
                                                                    Ticker Symbol, Stock
Corporate Address:                Ohio (OH), 45177, United States Exchange

Telephone                         + 937 3825591                     No. of Employees         N/A

Fax                               N/A                               Financial Year End       N/A

URL                               www.abxair.com

Industry                          Transport and Logistics

Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research


ABX Air, Inc. - SWOT Profile                                                                                       Page 2
ABX Air, Inc.


ABX Air, Inc. - Business Description

ABX Air, Inc. (ABX) is engaged in providing charter, maintenance and package handling services. The company operates
through FAA 145 certified repair station for aircraft and parts maintenance and overhaul. It principally provides facility and
equipment maintenance service, sort facility management and staffing, environmental monitoring services, aircraft
awareness, ground and hazardous material training, and flight crew training on level c simulators. The major subsidiaries
of the company include Capital Cargo International Airlines, Inc. (CCIA), and Air Transport International, LLC (ATI).

The company provides air cargo transportation and package handling services. ABX provides these services to DHL
under the ACMI and Hub Services agreements. The ACMI agreement deals with the air cargo transportation services and
Hub Services agreement focuses on package handling, package sorting, warehousing, and line-haul logistics services,
and also airport facilities and equipment maintenance services. These agreements enable the company to achieve
incremental mark-up more than the base 1.75%. The ACMI agreement allows in acquiring an additional 1.60% and the
Hub Services agreement permits up to 2.10%.

ABX offers ACMI (aircraft, crew, maintenance and insurance) and full service charters under charter business. The major
customers of this business include freight providers, airlines and other shippers. It operates Boeing 767 aircraft for these
services. The company also derives its revenues from these services on the basis of number of block hours. Also, the
operating expenses such as fuel, landing fees, parking fees and ground and cargo handling expenses are to be paid by
customer. Under some special terms and conditions, the company pays for these expenses. The selling of charter/ACMI
services are aimed at utilizing the non-core cargo space by freight forwarders and shippers. It also offers aircraft
maintenance services and other training facilities along with the expertise staff.

Recently, Air Transport Services Group, Inc. (ATSG), parent company of ABX signed long-term agreements under which
the subsidiaries of ATSG will provide aircraft and operating support to the US portion of DHL’s international logistics
network. Also, ATGS announced that its subsidiaries, ABX Air, Inc. and APA Teamsters, signed an agreement on the
payment of US$75 million for under a Severance and Retention Agreement between ABX Air and DHL.


ABX Air, Inc. - SWOT Profile                                                                                         Page 3
ABX Air, Inc.


ABX Air, Inc. - Major Products and Services

ABX Air, Inc. is an independent airline that provides cargo transportation and package sorting, handling through a network
of 19 hubs throughout the US. Key services of the company include the following:

ABX Air, Inc., Major Products and Services

Aircraft Charters

Aircraft Maintenance and

Modification services

Aircraft parts
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