Airlines win DoD heavy package delivery contract
The Defense Department will select from six pre-qualified air carriers, including UPS, FedEx and DHL, for its international heavyweight express package delivery needs during the next 10 months under indefinite delivery/indefinite quantity contracts issued last week by the U.S. Transportation Command.
Each of the carriers received different ceilings in the amount of potential business they could receive, with UPS topping the list at $47.1 million. The other awardees and the maximum value of their contracts are:
* FedEx Express — $33.2 million;
* Murray Air — $32.1 million;
* Miami Air International — $30.6 million;
* Delta Airlines — $30 million;
* Astar Air Cargo in partnership with DHL — $29.5 million.
There are no guarantees that the carriers will reach the maximum contract levels. Revenues will depend on the amount of work the DoD issues. Under the contract, the carriers will compete to win separate task orders from DoD logistics agencies and military bases to deliver parts and supplies weighing between 151 and 300 pounds around the world, effective Dec. 1 through Sept. 30, 2007.
DHL is serving as a subcontractor to Astar for this contract. DHL is responsible for pick up, delivery and related services while Astar, which has a fleet of 44 narrow-body planes, will handle the airport-to-airport line haul. DHL is Astar’s primary customer for domestic air service in the United States. Astar operates from DHL’s main air and ground hub in Wilmington, Ohio.
Murray Air of Ypsilanti, Mich., operates three DC-8 cargo planes primarily for the auto industry and was bought earlier this week by Orchard Park, N.Y.-based freight forwarder National Air Cargo.
Airlines win DoD heavy package delivery contract
