USPS Awards Contracts to Seven Airlines

The United States Postal Service has awarded air transportation contracts to seven passenger airlines effective 30 September 2006.

The USPS said that the airlines awarded contracts are: American Airlines; American Trans Air; Continental Airlines; JetBlue Airways; Midwest Airlines; Sun Country Airlines; and US Airways.

USPS also said that the agreements contain on-time delivery requirements and performance standards established in 2003 as part of the Postal Service's previous three-year commercial air contract.

The values of the five-year contracts are dependent on each carrier's capacity, service performance and mail volume transported, while the total value for fiscal year 2007 is estimated at approximately USD225m. The contracts cover domestic transport of Express Mail and First-Class Mail, and Priority Mail originating from designated Transportation Security Administration sites.

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