USPS, FedEx Agree to New Contract for Air Mail Transportation

Share this content:

FedEx Express, a subsidiary of FedEx Corp., and the U.S. Postal Service entered into a new agreement for domestic air transportation of mail through 2013.

The USPS and FedEx Express 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.

The new contract, announced on Aug. 1, will replace the final two years of that contract and a new seven-year agreement will commence in October of 2006. The current contract was set to expire in August 2008.

The agreement is expected to generate about $8 billion in revenue over the life of the agreement.

Memphis, TN-based 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.

Postmaster General John E. Potter said the relationship benefits postal customers by allowing the agency to maintain a high service standard while keeping costs affordable.

The 2001 retail agreement, giving FedEx the opportunity to place FedEx self-service collection boxes on postal property, is not affected by the announcement. That portion of the contract expires in 2009.

This is the second enhanced business relationship the USPS has announced with an air carrier this summer.

In July USPS's new contract with UPS began.

That agreement called for UPS, Atlanta, to transport primarily First Class and Priority Mail each week to and from 98 U.S. cities. Previously, UPS provided the USPS with mail transportation to and from 16 U.S. cities.

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above