Under ABX’s agreement with the union, $31.4 million was contributed to the pilots’ defined benefit pension trust on Dec. 29 and $30.4 million in pilot severance benefits and related taxes were paid prior to Dec. 31, Air Transport Services Group said. The remaining $13.2 million in severance benefits is to be disbursed in the coming months, management said.
"We are pleased that ABX Air finally reached an agreement with the union for the disbursement of these severance payments, which will provide much needed help to hundreds of ABX Air pilot families impacted by DHL’s decision to restructure its U.S. business," said Joe Hete, Air Transport's president and chief executive officer. "The funding for the pilots’ pension trust will improve their retirement security, as well as reduce pension obligations on our balance sheet, a key objective of ours."
Joe Muckle, president of the union, said: "The payment released by ABX Air provides severance promised in 2008 to furloughed ABX Air pilots. Issuance of these funds provides severance and other payments to approximately 420 pilots. The first furloughs began in January 2009 with another 30 crew members slated to be furloughed this month.”
DHL, seeking to reduce its $1 billion-plus annual losses in U.S. operations, closed its Wilmington freight hub — the region’s major employer — wiping out 8,000 jobs and affecting ABX workers who commuted daily from as far away as the Columbus, Dayton, Cincinnati and Portsmouth areas. DHL relocated what remains of the Wilmington operation to Cincinnati-Northern Kentucky International Airport.
Separately, ABX Air said it has terminated leases for the final two of five 767 aircraft it had operated for DHL in freight service. Terminating these two leases eliminates $18.6 million in debt and removes $8.3 million in net asset book value, company officials said.
The first three of the five aircraft leases were terminated in the third quarter of 2009, cutting debt by $27.2 million and removing $12.6 million in net asset book value, management said. ABX Air said it agreed to continue operating as many as four of these five aircraft under operating lease agreements fully reimbursed by DHL.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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