FedEx Express has been contracted to provide domestic air transportation for the US Postal Service (USPS) through 2013, in a deal that is expected to generate about US$8 billion in revenue.
USPS and FedEx Express signed a seven-year contract in 2001 for airport-to-airport delivery of mail within the US. The new contract will replace the final two years of that contract, and a new seven-year agreement will commence in October 2006.
The agreement is expected to generate about $8 billion in revenue over the life of the seven-year contract.
FedEx Express will continue to fly more than four million pounds of US mail every business day – the equivalent of 40 wide-body DC10 aircraft using existing aircraft and facilities.
“Reaching a new agreement a full two years ahead of schedule is proof positive of the excellent relationship that FedEx has developed with the US Postal Service,” said FedEx Express president & CEO, David Bronczek
