FedEx Pentagon Transport Contract Approaching $1.18 Billion in Value

On Tuesday, the Department of Defense announced the latest extension of its Federal Express Charter Programs Team Arrangement contract, awarding team members a $57.8 million increase in the value of their contract. Members of the FedEx "team" sharing in the award include:

  • Privately held MN Airlines.
  • Air Transport Services Group (NASDAQ: ATSG  ) .
  • Atlas Air Worldwide (NASDAQ: AAWW  ) .
  • Delta Air Lines (NYSE: DAL  ) .
  • Federal Express (NYSE: FDX  ) itself.

Under this contract, these companies agree to provide international airlift services to the U.S. Transportation Command, in support of U.S. forces worldwide, and will continue to do so through Sept. 30.

This contract was originally awarded to FedEx and its partner companies on Oct. 1, 2012. At the time, the contract was expected to range in value from $197.6 million to $434.4 million over an indeterminate amount of time. In fact, though, the Pentagon's latest contract extension notes that the cumulative face value of the contract is now approaching $1.18 billion, nearly three times its original estimated value.

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  • Report this Comment On December 08, 2014, at 10:51 AM, davisroger wrote:

    Really big news from Aviation industry. Basta Holdings ($BSTA) clients include the US Department of Defence, the United Nations and leading Fortune 500 companies to meet their domestic and international cargo traffic needs.

  • Report this Comment On December 09, 2014, at 11:49 AM, morrisjack1 wrote:

    This is good news for Pentagon Transport. Even $BSTA has established good relationship with US department of defense.

  • Report this Comment On December 10, 2014, at 4:10 AM, PatrickTS wrote:

    Why so many rumors about that $BSTA?

  • Report this Comment On December 10, 2014, at 5:55 AM, DavidGarry wrote:

    AAWW quite at the top of it. Well the rumor might be that $BSTA is coming up with lots of surprises by 2015

  • Report this Comment On December 10, 2014, at 12:48 PM, coolsteven2015 wrote:

    AAWW is giving a tough competition to strong companies like $BSTA.

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