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                                                                   EXHIBIT 10(i)



                                 AIRBORNE, INC.


                        2002 EXECUTIVE STOCK OPTION PLAN

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                                TABLE OF CONTENTS

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                                                                              Page
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ARTICLE 1 PURPOSE ..........................................................    1

ARTICLE 2 DEFINITIONS ......................................................    1

ARTICLE 3 ADMINISTRATION ...................................................    1

     3.1   Committee .......................................................    1
     3.2   Powers; Regulations .............................................    1
     3.3   Limits on Authority .............................................    1
     3.4   Exercise of Authority ...........................................    2

ARTICLE 4 SHARES SUBJECT TO THE PLAN .......................................    2

     4.1   Number of Shares ................................................    2
     4.2   Adjustments .....................................................    2

ARTICLE 5 PARTICIPANTS .....................................................    2

ARTICLE 6 STOCK OPTIONS ....................................................    2

     6.1   Grant of Options; Purchase Price ................................    2
     6.2   Term of Options .................................................    2
     6.3   Option Agreement ................................................    3
     6.4   Exercise of Options .............................................    3
           (a)  Time Exercisable ...........................................    3
           (b)  Manner of Exercise .........................................    3
           (c)  Value of Shares ............................................    3
           (d)  Issuance of Shares .........................................    3
     6.5   Legends .........................................................    3
     6.6   Transferability .................................................    3

ARTICLE 7 GENERAL PROVISIONS ...............................................    4

     7.1   Termination of Employment for Cause .............................    4
     7.2   Approved Transaction ............................................    4
     7.3   Right to Terminate Employment ...................................    4
     7.4   Nonalienation of Benefits .......................................    4
     7.5   Amendment .......................................................    4
     7.6   Government and Other Regulations ................................    4
     7.7   Withholding .....................................................    5
     7.8   Severability ....................................................    5
     7.9   Plan Not Exclusive ..............................................    5
     7.10  Exclusion from Pension and Profit-Sharing Computation ...........    5
     7.11  No Stockholder Rights ...........................................    5
     7.12  Governing Law ...................................................    5
     7.13  Company's Rights ................................................    6
     7.14  Effective Date ..................................................    6
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                                      -i-

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                                 AIRBORNE, INC.

                        2002 EXECUTIVE STOCK OPTION PLAN

                                    ARTICLE 1

                                     PURPOSE

     The purpose of the 2002 Executive Stock Option Plan (the "Plan") is to
reward the Chairman and the Vice Chairman of the Board of Directors of Airborne,
Inc., a Delaware corporation (the "Company"), for their many years of devoted
service to the Company.

                                    ARTICLE 2

                                   DEFINITIONS

     Capitalized terms used in the Plan shall have the meanings given those
terms in the attached Appendix A or in the section of the Plan referred to
therein.

                                    ARTICLE 3

                                 ADMINISTRATION

     3.1 Committee. The Plan shall be administered by the Committee. A majority
of the members of the Committee shall constitute a quorum and all determinations
shall be made by a majority of that quorum. Any determination reduced to writing
and signed by all of the members of the Committee shall be as effective as if it
had been made by a majority vote at a meeting duly called and held.

     3.2 Powers; Regulations. The Committee shall have full power and authority,
subject only to the provisions of the Plan (a) to administer or supervise the
administration of the Plan; (b) to interpret the provisions of the Plan and the
Option Agreements; (c) to correct any defect, supply any information and
reconcile any inconsistency in such manner and to such extent as it determines
to be necessary or advisable to carry out the purpose of the Plan; and (d) to
take such other actions in connection with the Plan as it determines to be
necessary or advisable. The Committee is authorized to adopt, amend and rescind
such rules, regulations and procedures not inconsistent with the provisions of
the Plan as it determines to be necessary or advisable for the proper
administration of the Plan, and each Option shall be subject to all such rules,
regulations and procedures.

     3.3 Limits on Authority. Exercise by the Committee of its authority shall
be consistent with the intent that the Plan be administered in a manner so that,
to the extent possible, the grant of Options and all other transactions with
respect to the Plan, to Options and to any Common Stock acquired upon exercise
of Options, shall be exempt from the operation of Section 16(b) of the Exchange
Act.

                                       -1-

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     3.4 Exercise of Authority. Each action and determination made or taken by
the Committee, including but not limited to any interpretation of the Plan and
the Option Agreements, shall be final, conclusive and binding for all purposes
and upon all persons. No member of the Committee shall be liable for any action
or determination made or taken by the member or the Committee in good faith.

                                    ARTICLE 4

                           SHARES SUBJECT TO THE PLAN

     4.1 Number of Shares. Subject to the provisions of this Article 4, Options
will be granted under the Plan for two hundred thousand (200,000) shares of
Common Stock. Such shares will be made available from shares of Common Stock
held in the Company's treasury.

     4.2 Adjustments. If the Company subdivides its outstanding shares of Common
Stock into a greater number of shares (by stock dividend, stock split,
reclassification or otherwise) or combines its outstanding shares of Common
Stock into a smaller number of shares (by reverse stock split, reclassification
or otherwise), or if the Committee determines that any stock dividend,
extraordinary cash dividend, reclassification, recapitalization, reorganization,
split-up, spin-off, combination, exchange of shares, rights offering, or other
transaction or event that is not an Approved Transaction affects the Common
Stock such that an adjustment is required in order to preserve the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it determines to be equitable and
appropriate, adjust any or all of (a) the number of shares of Common Stock (or
number and kind of other securities or property) for which outstanding Options
may thereafter be exercised; and (b) the Purchase Prices for the shares (or
other securities or property) under outstanding Options.

                                    ARTICLE 5

                                  PARTICIPANTS

     The individuals who shall participate in the Plan are Robert S. Cline and
Robert G. Brazier.

                                    ARTICLE 6

                                  STOCK OPTIONS

     6.1 Grant of Options; Purchase Price. As of the Effective Date, Robert S.
Cline and Robert G. Brazier shall each receive an Option for one hundred
thousand (100,000) shares of Common Stock. The Purchase Price under each of the
Options shall be $15.60 per share of Common Stock.

     6.2 Term of Options. Subject to other provisions of the Plan with respect
to termination of Options, the term of each of the Options granted hereunder
shall expire on February 5, 2007.

                                      -2-

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     6.3  Option Agreement. Each Option shall be evidenced by an agreement (the
"Option Agreement") containing the terms and conditions of the Option as set
forth in the Plan and any other terms and conditions determined by the
Committee.

     6.4  Exercise of Options.

          (a) Time Exercisable. Each Option shall be immediately exercisable as
of the Effective Date and shall thereafter continue to be exercisable for the
remainder of the Option's term.

          (b) Manner of Exercise. An Option shall be exercised by written notice
to the Company in compliance with the terms and conditions of its Option
Agreement and such procedures for exercise of Options as the Committee may adopt
from time to time. The Purchase Price of the shares to be purchased upon
exercise of the Option shall be paid by (i) check, (ii) delivery of whole shares
of Common Stock that are owned by the Holder and have been outstanding for at
least six (6) months, or (iii) delivery, together with a properly executed
exercise notice, of irrevocable instructions to a broker to deliver promptly to
the Company the amount of sale or loan proceeds required to pay the Purchase
Price. The minimum number of shares of Common Stock for which an Option must be
exercised shall be one hundred (100) (or, if less, the full number of shares for
which it is exercisable).

          (c) Value of Shares. Shares of Common Stock delivered in payment of
all or any part of the Purchase Price payable upon exercise of an Option shall
be valued at their Fair Market Value on the exercise date of the Option.

          (d) Issuance of Shares. The Company shall issue the shares of Common
Stock purchased under an Option as soon as practicable after the Option has been
duly exercised; provided, however, that no fractional shares shall be issuable
under the Plan, and any fractional shares that would otherwise be issuable shall
be disregarded.

     6.5 Legends. Each certificate representing shares of Common Stock issued
upon exercise of an Option shall contain any legends that the Committee
determines to be necessary or appropriate. The Company may cause the transfer
agent for the Common Stock to place a stop transfer order with respect to such
shares.

     6.6 Transferability. The original Holder of an Option may transfer the
Option to any Permitted Transferee, so long as the transfer is without value,
and the Permitted Transferee may transfer the Option without value to any other
Permitted Transferee of the original Holder. Neither (a) a transfer under a
domestic relations order in settlement of marital property rights, nor (b) a
transfer to an entity in which more than fifty percent (50%) of the voting
interests are owned by Permitted Transferees (or the original Holder) in
exchange for an interest in that entity, will constitute a transfer for value.
Except as expressly permitted by this Section 6.6, an Option will not be
transferable by its Holder other than by will or by the laws of descent and
distribution, will not be involuntarily alienable by legal process or otherwise
by operation of law, and will be exercisable during the Holder's lifetime only
by the Holder. If the Holder of an Option dies prior to its full exercise, the
Option may be exercised, to the extent it does not thereby terminate, by

                                       -3-

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the person or persons to whom the rights of the holder under the Option pass by
will or by applicable laws of descent and distribution.

                                    ARTICLE 7

                               GENERAL PROVISIONS

          The provisions of this Article 7 shall apply to the Options.

          7.1  Termination of Employment for Cause. If a Holder's employment
with the Company is terminated for Cause, then the Option held by the Holder
shall immediately terminate.

          7.2  Approved Transaction. If an Approved Transaction occurs, the
Committee shall have the power to determine what effect, if any, the Approved
Transaction shall have upon outstanding Options, including, without limitation
the following powers:

                    (i)  to cause the Options to be surrendered and canceled and
               payments to be made to the Holders in exchange therefor; and

                    (ii) to cause adjustments to be made in (A) the number of
               shares of Common Stock (or number and kind of other securities or
               property) for which outstanding Options may thereafter be
               exercised, (B) the Purchase Price for the shares (or other
               securities or property) under outstanding Options, and (C) the
               other terms of outstanding Options.

          7.3  Right to Terminate Employment. Nothing contained in the Plan or
in any Option Agreement, and no action of the Company or the Committee with
respect thereto, shall confer on any Holder any right to continue in the employ
of the Company or interfere in any way with the right of the Company, subject to
the terms and conditions of any agreement between the Holder and the Company, to
terminate at any time, with or without Cause, the employment of the Holder.

          7.4  Nonalienation of Benefits. Except as permitted pursuant to
Section 6.6, no right or benefit under the Plan or any Option shall be (a)
subject to anticipation, alienation, sale, assignment, hypothecation, pledge,
exchange, transfer, encumbrance or charge (and any attempt to anticipate,
alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or
charge the same shall be void); or (b) liable for or subject to the debts,
contracts, liabilities or torts of the person entitled to the right or benefit.

          7.5  Amendment. The Board or the Committee may from time to time amend
the Plan in such respects as it shall deem advisable; provided, however, that
any such amendment shall comply with all applicable laws and stock exchange
listing requirements. No amendment of the Plan may adversely affect the rights
of the Holder of an Option in any material way unless the Holder consents
thereto.

                                      -4-

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     7.6  Government and Other Regulations. The obligation of the Company with
respect to Options and the issuance of Common Stock upon the exercise thereof
shall be subject to all applicable laws, rules and regulations and such
approvals by any governmental agencies as may be required, including but not
limited to the effectiveness of any registration statement required under the
Securities Act, and the rules and regulations of any securities exchange or
over-the-counter market on which the Common Stock may be listed or quoted. The
Company shall have no obligation to register shares of Common Stock issuable
upon exercise of Options under the Securities Act or to register, qualify or
list such shares under the laws of any state or other jurisdiction or the rules
of any securities exchange or over-the-counter market.

     7.7  Withholding. By accepting an Option, the Holder shall be deemed to
have agreed to pay, or make arrangements satisfactory to the Committee for
payment to the Company of, all taxes required to be withheld by the Company in
connection with the exercise of the Option or any sale, transfer or other
disposition of any shares of Common Stock acquired upon exercise of the Option.
If the Holder shall fail to pay, or make arrangements satisfactory to the
Committee for the payment of, all such taxes, then the Company shall, to the
extent not prohibited by law, have the right to deduct from any payment of any
kind otherwise due to the Holder an amount equal to any taxes of any kind
required to be withheld by the Company with respect to the Option.

     7.8  Severability. If any provision of this Plan or any Option Agreement,
on its face or as applied to any person or circumstance, is or becomes
unenforceable to any extent, the remainder of this Plan or the Option Agreement,
as the case may be, and the application of the provision to any other person,
circumstance or extent, shall not be affected, and this Plan and the Option
Agreement shall continue in force.

     7.9  Plan Not Exclusive. The adoption of the Plan shall not be construed as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including but not limited to the granting
of stock options and the awarding of stock and cash outside of the Plan, and
such arrangements may be either generally applicable or applicable only in
specific cases.

     7.10 Exclusion from Pension and Profit-Sharing Computation. By accepting an
Option, the Holder shall be deemed to have agreed that the Option is special
incentive compensation that will not be taken into account, in any manner, as
salary, compensation or bonus in determining the amount of any payment or other
benefit under any pension, retirement or other employee benefit plan, program or
policy of the Company.

     7.11 No Stockholder Rights. No Holder or other person shall have any voting
or other stockholder rights with respect to shares of Common Stock under an
Option until the Option has been duly exercised, full payment of the Purchase
Price has been made, all conditions under the Option and the Plan to issuance of
the shares have been satisfied, and a certificate for the shares has been
issued. No adjustment shall be made for cash or other dividends or distributions
to stockholders for which the record date is before the date of such issuance.

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     7.12 Governing Law. The Plan and all Options shall be governed by, and
interpreted in accordance with, the laws of the State of Washington.

     7.13 Company's Rights. The grant of Options shall not affect in any way the
right or power of the Company to make reclassifications, reorganizations or
other changes of or to its capital or business structure or to merge,
consolidate, liquidate, sell or otherwise dispose of all or any part of its
business or assets.

     7.14 Effective Date. The Plan shall be effective as of February 5, 2002
(the "Effective Date").

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                                 AIRBORNE, INC.
                        2002 EXECUTIVE STOCK OPTION PLAN

                                   APPENDIX A

     "Approved Transaction" means any of the following transactions consummated
with the approval, recommendation or authorization of the Board:

               (a) any merger, consolidation, statutory or contractual share
          exchange, or other transaction to which the Company or any of its
          affiliates or stockholders is a party if, immediately following the
          transaction, the persons who held Common Stock (or securities
          convertible into Common Stock) immediately before the transaction hold
          less than a majority of --

                   (i)  the combined Common Equity of the Company; or

                   (ii) if, pursuant to the transaction, shares of Common Stock
          are changed or converted into or exchanged for, in whole or part,
          securities of another corporation or entity, the combined Common
          Equity of that corporation or entity;

     without taking into account any person's Common Equity of the Company or
     the other corporation or entity that is not directly attributable (through
     continued ownership, amendment, reclassification, conversion or exchange)
     to the person's holdings of Common Stock (or securities convertible into
     Common Stock) immediately before the transaction;

               (b) any liquidation or dissolution of the Company; and

               (c) any sale, lease, exchange or other transfer not in the
          ordinary course of business (in one transaction or a series of related
          transactions) of all, or substantially all, of the assets of the
          Company.

     "Board" means the Board of Directors of the Company.

     "Cause" means, in connection with the termination of the employment of a
Holder (a) repeated failures to carry out directions of the Board or the
Holder's supervisors with regard to material matters reasonably consistent with
the Holder's duties; (b) knowing violation of a state or federal law involving
the commission of a crime against the Company or a felony; (c) misuse of
controlled substances; (d) any misrepresentation, deception, fraud or dishonesty
that is materially injurious to the Company; and (e) any act or omission in
willful disregard of the interests of the Company that substantially impairs the
goodwill, business or reputation of the Company.

     "Committee" means the Compensation Committee of the Board.

                                      A-1

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                                 AIRBORNE, INC.
                        2002 EXECUTIVE STOCK OPTION PLAN

                                   APPENDIX A

     "Common Equity" means the capital stock of a corporation (or corresponding
securities of a noncorporate entity) ordinarily, and apart from rights accruing
under special circumstances, having the right to vote in an election for
directors (or for members of the governing body of the noncorporate entity).

     "Common Stock" means the Common Stock, par value $1.00 per share, of the
Company.

     "Company" is defined in Article 1.

     "Effective Date" is defined in Section 7.14.

     "Eligible Person" is defined in Article 5.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor statute or statutes thereto. Reference to any
specific section of the Exchange Act shall include any successor section.

     "Fair Market Value" for the Common Stock (or any other security) on any day
means, if the Common Stock (or other security) is publicly traded, the last
sales price (or, if no last sales price is reported, the average of the high bid
and low asked prices) for a share of Common Stock (or unit of the other
security) on that day (or, if that day is not a trading day, on the next
preceding trading day), as reported by the principal exchange on which the
Common Stock (or other security) is listed, or, if the Common Stock (or other
security) is publicly traded but not listed on an exchange, as reported by The
Nasdaq Stock Market, or, if such prices or quotations are not reported by The
Nasdaq Stock Market, as reported by any other available source of prices or
quotations selected by the Committee. If the Common Stock (or other security) is
not publicly traded, or if the Fair Market Value is not determinable by any of
the foregoing means, the Fair Market Value on any day shall be determined in
good faith by the Committee on the basis of such considerations as the Committee
determines to be appropriate.

     "Holder" means an individual who has received an Option or, when the
context so requires, if rights under the Option continue following the death of
the individual or are transferred in a manner permitted by Section 6.6, the
person who succeeds to those rights by will or by the laws of descent and
distribution or by such transfer.

     "Option" means an option with respect to shares of Common Stock awarded
pursuant to Article 6.

     "Option Agreement" is defined in Section 6.3.

                                      A-2

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                                 AIRBORNE, INC.
                        2002 EXECUTIVE STOCK OPTION PLAN

                                   APPENDIX A

     "Permitted Transferee" of a Holder means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law of the Holder (including any such relative by adoption); any
person sharing the Holder's household (other than a tenant or employee); a trust
in which these persons have more than fifty percent (50%) of the beneficial
interest; and any other non-charitable entity in which these persons (or the
Holder) own more than fifty percent (50%) of the voting interests.

     "Purchase Price" means the price at which shares of Common Stock may be
purchased upon exercise of an Option.

     "Plan" is defined in Article 1.

     "Securities Act" means the Securities Act of 1933, as amended from time to
time, or any successor statute or statutes thereto. Reference to any specific
section of the Securities Act shall include any successor section.

                                      A-3