FedEx, Postal Service Extend Air Contract Through 2013
Extension Will Be Worth $1 Billion a Year
he U.S. Postal Service and FedEx Corp. unit FedEx Express said Tuesday they have agreed to a new contract for domestic air transportation of postal express shipments, to run through September 2013.
The new contract, worth about $1 billion a year, takes the place of the current contract, which was set to expire in August 2008. FedEx Express will fly about 4 million pounds of U.S. mail every business day.
The two signed a seven-year contract in 2001 for airport-to-airport delivery of Priority Mail, Express Mail and First-Class Mail within the United States.
“Reaching a new agreement a full two years ahead of schedule is proof positive of the excellent relationship that FedEx has developed with the U.S. Postal Service,” said David Bronczek, FedEx Express’ chief executive officer.