Exhibit 12 (b)

AIRBORNE, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

	Year Ended December 31, 2002
EARNINGS:
Earnings (loss) before taxes	$	26,971
Fixed charges		52,043
Less: Capitalized interest expense		(1,447	)
Total earnings	$	77,567
CALCULATION OF FIXED CHARGES:
Net interest expense	$	29,553
Add: Capitalized interest expanses		1,447
Add: Interest income		5,132
Gross interest expense		36,132
Discounts on sales of receivables		4,050
Amortization of debt expense		2,105
Rental expense:
Total		97,555
Factor		10	%
Net “interest” component		9,756
TOTAL FIXED CHARGES	$	52,043
RATIO OF EARNINGS TO FIXED CHARGES		1.49