August 30, 2005

US military awards up to $2.25 bln in airlift work

WASHINGTON (Reuters) - The U.S. Air Force on Tuesday said
it awarded airlift contracts valued at up to $2.25 billion to
various carriers, including FedEx Corp. and the Alliance
Contractor Team, which groups major airlines.

The Air Force said it could issue delivery orders to the
various carriers up to the total amount, but actual
requirements could be less.

The U.S. military uses military and commercial air carriers
to provide airlift capabilities to U.S. forces, including
deployment of troops overseas and transport of cargo.

The biggest of the contracts, worth up to $1.22 billion,
was to the Alliance Contractor Team of Sterling, Virginia,
which includes ABX Air, AMR Corp, ASTAR Air Cargo, Delta Air
Lines, Evergreen International Airlines, Ryan Air, UAL Corp.'s
United Airlines, US Airways, and World Airways.

The FedEx team won a contract valued at up to $864 million,
while a team headed by United Parcel Service won a deal valued
at up to $121 million.

Miami Air Team was awarded up to $41 million in airlift
work, while Continental Airlines won an award of up to $11.4

Most of the work must be completed by September 2006, the
Pentagon said in announcing the big contracts.

Last year, the Pentagon awarded contracts valued at up to
$1.9 billion for international airlift work.

An Air Force spokesman had no immediate comment on the
total amount of airlift work actually ordered last year.