February 22, 2008
Capital Cargo Crewmembers’ Statement on ABX Holdings President and CEO’s Comments at Recent Conference
TOLEDO, OH – Captain CJ Johnson, chairman of the Capital Cargo unit of the Air Line Pilots Association, Int’l (ALPA), released the following statement in response to ABX Holdings President and CEO Joe Hete’s comments made during the BB&T Capital Markets and Transportation Services Conference held on February 14, regarding the recent acquisition of Capital Cargo’s parent company, Capital Holdings, Inc. (CHI), by ABX Holdings, Inc.
During the webcast presentation, Mr. Hete stated, “Everybody can make their decisions in terms of how they elect to operate in terms of their air carrier certificates and their labor agreements. We think the right business model is to keep those certificates separate so that you do not end up with the leverage. So we plan not just today, but in the future, to have three separate operating certificates: CCIA, ATI, and ABX.”
“Capital Cargo crewmembers are extremely concerned about Mr. Hete’s comments,” said Capt. Johnson. “Mr. Hete describes a business model that is a chilling reminder of the Lorenzo-era of airline management. ABX Holdings may indeed choose to run the airlines separately, under separate certificates; however, the hard-working crewmembers of Capital Cargo will not stand for being put in the middle of a whipsaw game.
“Many of our crewmembers have been here since the beginning days of Capital Cargo. The employees went above and beyond to make this airline a success. Yet, CCIA management continues to push its cost of doing business onto its crewmembers. We haven’t had a negotiated wage increase since 2000. Since our contract became amendable in 2004, we have voted down three insulting tentative agreements negotiated with previous union leadership. We hope our parent company, ABX Holdings, Inc., understands that the members of CCI Local Executive Council (LEC) 119 will not become the sweatshop of the group.
“In addition, we look forward to management’s implementing the seven-month-old Boeing 757 program, completing proving runs and approving manuals in the next 30-90 days. We hope that ABX management recognizes the positive effects that moving our fleet forward will have for Capital Cargo and its crewmembers.
“Our crewmembers have heard much about the ‘synergies’ of the CHI acquisition, but fear this synergy is threatened by comments such as those made by Mr. Hete. ABX management must understand that pitting one carrier against the other is not a synergy. As our International Brotherhood of Teamsters (IBT) brothers and sisters at ATI and ABX continue their mediated negotiations, we offer them our full support. We also enjoy the support of IBTs Locals 1224 and 747 as we continue our contract negotiations. We may be represented by different unions, but Capital Cargo, as an ALPA carrier, stands strong with the IBT of ABX and ATI.”
Capital Holdings, Inc., was recently acquired by ABX Holdings, Inc., which has two principal operating businesses: ABX Air, an air cargo services provider operating out of Wilmington, Ohio, and CHI. CHI’s four operating subsidiaries include two separate airlines, ATI and Capital Cargo International Airlines, Inc.
Founded in 1931, ALPA is the world’s largest pilot union representing more than 61,000 pilots at 43 airlines in the U.S. and Canada, including 115 cockpit crew members at CCIA. Visit the ALPA Web site at www.alpa.org.
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Tawnya Burket — (724) 622-6738
Anya Piazza — (703) 626-7926
CJ Johnson — (360) 930-2789