Pentagon Hires Airlines in $1.44 Billion Transportation Agreement

The Department of Defense awarded six defense contracts Tuesday, worth a total of $1.54 billion.

The largest of these awards increases by an estimated $804.8 million the size of an existing contract with a group of carriers dubbed the "Patriot Team" to provide international airlift services to the U.S. Transportation Command. This Patriot Team consists of the following carriers, who are providing these services to the U.S. military:

  • Air Transport Services Group (NASDAQ: ATSG  ) subsidiary ABX Air
  • JetBlue Airways (NASDAQ: JBLU  )
  • United Continental (NYSE: UAL  )
  • UPS (NYSE: UPS  )
  • Five privately held air carriers.

A separate, slightly smaller contract modification with an "Alliance Contractor Team" will be worth $635.5 million, and involves American Airlines (NASDAQ: AAL  ) and two other, privately owned carriers.

By virtue of these two contract modifications, all of these firms will continue providing international airlift services to the military through Sept. 30 of this year.


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