FedEx Postal Agreement Renewed thru 2013
Good news:
MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 1, 2006--FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX - News), and the U.S. Postal Service (USPS) today announced a new agreement for domestic air transportation of mail through 2013.
The Postal Service and FedEx Express signed a seven-year contract in 2001 for airport-to-airport delivery of mail within the United States. The contract announced today will replace the final two years of that contract and a new seven-year agreement will commence in October of 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 over 4 million pounds of U.S. mail every business day - the equivalent of 40 wide-body DC10 aircraft using existing aircraft and facilities.
"The new contract allows the Postal Service and FedEx to continue our successful business relationship," said Postmaster General John E. Potter. "This relationship benefits postal customers by allowing us to maintain our high service standards while keeping costs affordable."
"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 J. Bronczek, president and chief executive officer of FedEx Express. "We are proud of the trust the Postal Service has placed in us and their confidence in our fast, reliable and efficient service."