Thursday, February 23, 2017

FedEx, USPS extend contract by four years

FedEx Express, the airline arm of Memphis-based FedEx Corp., and the United States Postal Service (USPS) have extended a contract by four years under which FedEx provides express air transport services for USPS.

The contract, initiated in 2013 and originally set to expire in 2020, will now be in effect through September 2024. Under the contract, FedEx Express provides airport-to-airport transportation for USPS’s “priority mail express” and “priority mail” products within the US.

According to FedEx, the modified contract is expected to generate $1.5 billion in annual revenue for FedEx.

FedEx Corp. president and COO David Bronczek said FedEx is able to provide “operational reliability and flexibility” to USPS.

(Aaron Karp - ATWOnline News)

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