Air Force awards USD2.3B in air fleet deals
The U.S. Air Force on Monday announced the awards of international airlift services contracts worth up to USD2.3 billion to support the Civil Reserve Air Fleet program.
The pacts, which were awarded to more than 10 airlines individually or as teams, will be used by the civilian businesses to support Defense Department airlift requirements in emergencies when the Pentagon’s needs exceed the capabilities of military aircraft.
The contract awarded to the FedEx Corp. team, which also includes Atlas Worldwide Holdings, is worth a guaranteed USD185 million and up to USD1.02 billion, according to the Air Force.
The UPS Inc., team deal will earn at least USD25 million and as much as USD119 million, while Continental Airlines Inc., was awarded a contract for up to USD10 million.
Shares of FedEx added USD1.68 to end at USD107.60, while UPS gained 11 cents to close at USD72.62, and Continental lost 54 cents to USD28.85, all on the New York Stock Exchange.
Atlas Worldwide gained a penny to end at USD43.76 on the Nasdaq.
