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.