ABX Air
Outlook
As a result of their merger, DHL and Airborne are in the process of integrating their combined product offerings, sales, marketing, administrative and operating resources. After August 15, 2004, Airborne may terminate specific ACMI aircraft, add to, delete or modify the air routes ABX operates under the ACMI agreement and increase or reduce the scope of services that ABX provides under the Hub Services agreement. DHL has informed ABX that, in an effort to eliminate duplicative costs, it is developing plans to better integrate its U.S. operations. ABX anticipates that plans will be finalized later this year for implementation during late 2005 and early 2006, that will call for a reduction in the number of aircraft it provides to Airborne under the ACMI agreement. At this time, it is uncertain how many ABX aircraft will eventually be removed from service and the timing of those reductions. In June 2004, DHL announced that they plan to consolidate their main air hub in Wilmington, Ohio, where ABX operates the sort facility. The financial impact of any changes on ABX Air will depend on integration plans ultimately implemented by DHL and are not determinable at this time.