FedEx, Postal Service Extend Air Contract Through 2013

Click here to write a Letter to the Editor.

he U.S. Postal Service and FedEx Corp. unit FedEx Express said Tuesday they have agreed to a new contract for domestic air transportation of postal express shipments, to run through September 2013.

The new contract, worth about $1 billion a year, takes the place of the current contract, which was set to expire in August 2008. FedEx Express will fly about 4 million pounds of U.S. mail every business day.

The two signed a seven-year contract in 2001 for airport-to-airport delivery of Priority Mail, Express Mail and First-Class Mail within the United States.

img src="/sites/default/files/images/articles/uspslogo.gif" width=140 align=right>“The new contract allows the Postal Service and FedEx to continue our successful business relationship,” said Postmaster General John 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 Bronczek, FedEx Express’ chief executive officer.