Significant Customers

12 Months Ended

Dec. 31, 2013

Significant Customers [Abstract]

Significant Customers

SIGNIFICANT CUSTOMERS

DHL

The Company's largest customer is DHL Network Operations (USA), Inc. and its affiliates ("DHL"). The Company has had long term contracts with DHL since August 2003. Revenues from continuing operations performed for DHL were approximately 54%, 53% and 36% of the Company's consolidated revenues from continuing operations for the years ended December 31, 2013, 2012 and 2011, respectively. The Company’s balance sheets include accounts receivable with DHL of $24.1 million and $18.3 million as of December 31, 2013 and December 31, 2012, respectively.

The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate crew, maintenance and insurance (“CMI”) agreement, the Company operates Boeing 767 aircraft that DHL leases from the Company and Boeing 767 aircraft that DHL owns. Pricing for services provided through the CMI agreement is based on pre-defined fees, scaled for the number of aircraft operated and the number of flight crews provided to DHL for its U.S. network. The Company provides DHL with scheduled maintenance services for aircraft that DHL leases or owns. The Company also provides Boeing 767 and Boeing 757 air cargo transportation services for DHL through additional ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Revenues generated from the ACMI agreements are typically based on hours flown. The Company also provides ground equipment, such as power units, air starts and related maintenance services to DHL under separate agreements.

U.S. Military

A substantial portion of the Company's revenues are also derived from the U.S. Military. The U.S. Military awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. Revenues from services performed for the U.S. Military were approximately 17%, 16% and 12% of the Company's total revenues from continuing operations for the years ended December 31, 2013, 2012 and 2011, respectively. The Company's balance sheets included accounts receivable with the U.S. Military of $4.8 million and $4.2 million as of December 31, 2013 and December 31, 2012, respectively.

BAX/Schenker

The Company had contracts to provide airlift to BAX Global, Inc.'s network in North America ("BAX/Schenker"). Revenues from the services performed for BAX/Schenker were approximately 26% of the Company’s total revenues from continuing operations for the year ended December 31, 2011. BAX/Schenker provided freight transportation and supply chain management services, specializing in the heavy freight market for business-to-business shipping.

On July 22, 2011, BAX/Schenker announced its plan to adopt a new operating model that phased-out the dedicated air cargo network in North America supported by the Company. To execute that plan, on September 2, 2011, BAX/Schenker ceased air cargo operations at its air hub in Toledo, Ohio and began to conduct air operations from the Cincinnati/Northern Kentucky airport, utilizing DHL's U.S. air hub. The Company provided limited airlift directly to BAX/Schenker through the peak delivery season, until late December 2011. Beginning in January 2012, DHL contracted with the Company's airlines to supplement DHL's U.S. air network to service BAX/Schenker freight volumes on its expanded air network without the use of the Company's DC-8 aircraft and with only limited use of the Company's Boeing 727 aircraft.

No services were performed for Bax/Schenker during 2013 and 2012. The Company’s balance sheets had no accounts receivable with BAX/Schenker as of December 31, 2013 and 2012.