Atlas Air Announce Order for 12 747-8Fs

[B747FR8DAWG]

Go Atlas, Go Giant!

Air Force Awards $2.3B in Air Fleet Deals
Monday September 18, 6:12 pm ET Air Force Awards $2.3B in Air Fleet Deals to FedEx, UPS and Others
WASHINGTON (AP) -- The U.S. Air Force on Monday announced the awards of international airlift services contracts worth up to $2.3 billion to support the Civil Reserve Air Fleet program.
The pacts, which were awarded to more than 10 airlines individually or as teams, will be used by the civilian businesses to support Defense Department airlift requirements in emergencies when the Pentagon's needs exceed the capabilities of military aircraft.

The contract awarded to the FedEx Corp. team, which also includes Atlas Worldwide Holdings, is worth a guaranteed $185 million and up to $1.02 billion, according to the Air Force.

The UPS Inc., team deal will earn at least $25 million and as much as $119 million, while Continental Airlines Inc., was awarded a contract for up to $10 million.

Shares of FedEx added $1.68 to end at $107.60, while UPS gained 11 cents to close at $72.62, and Continental lost 54 cents to $28.85, all on the New York Stock Exchange.

Atlas Worldwide gained a penny to end at $43.76 on the Nasdaq.

 

[Fliteidol]

How much was last years award to the Fedex team? Hopefully this will keep the classic fleet busy and push back any furloughs!

 

[furloughfodder]

Here is the post from last year...about the same...

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Air Force announces CRAF contracts valued at $2.2 billion

9/13/2005 - SCOTT AFB, Ill -- Air Force officials at Headquarters Air Mobility Command announced today the award of $2.2 billion worth of annual International Airlift Services contracts in support of the Civil Reserve Air Fleet program (CRAF).

Civilian airlines contractually commit to the CRAF to support Department of Defense airlift requirements in emergencies when the need for airlift exceeds the capability of military aircraft. To provide incentives for civil carriers to commit aircraft to the CRAF program and to assure the United States of adequate airlift reserves, AMC annually awards peacetime airlift business to civilian airlines that offer aircraft to the CRAF. The Defense Department offers business through the International Airlift Services contract.

Airlines may contract as teams to optimize their resources for commitment. The following airlines and teams were awarded contracts for fiscal year 2006. The minimum guaranteed value of the contract is listed first, followed by the estimated contract value based on current Defense Department contract airlift. Team members awarded at least 25% of the minimum guarantee are listed in parentheses below:

· Alliance Contractor Team (Evergreen International Airlines, Inc. and World Airways, Inc.), $191 million, $1.222 billion

· Federal Express Team (Atlas Worldwide Holdings, parent company of Atlas Air, Inc and Polar Air Cargo, Inc), $140 million, $864 million

· UPS Team (Kalitta Air, LLC, and North American Airlines), $17 million, $121 million

· Miami Air Team (Miami Air International), $11 million, $42 million

· Continental Airlines, Inc., $886,000, $11 million

In addition, Falcon Air Express, Inc., Grand Air Holdings, Inc., Lynden Air Cargo, MN Airlines, LLC, and Spirit Airlines, Inc., also were awarded contracts valued between $2,000 and $254,000.

Estimated contract values include both fixed and expansion business. Fixed buy contracts are comprised of requirements that are known far enough in advance to allow their inclusion in the solicitation. Carriers awarded this business know exactly where and when they will perform their contract obligations in the coming year. The estimate is based on current DOD contract airlift utilization. Change in DOD contract airlift requirements may cause actual value to vary significantly. Team member shares of team business may vary depending on member capability and team organization.

Expansion business awards consist of airlift requirements that are unknown at this time. Once these requirements are known, carriers may offer to perform these missions. Expansion business can comprise a significant amount of the total contract value.

Offers from other carriers are under consideration and may result in future awards.

In the history of the program, the Defense Department has twice called on the CRAF to support airlift requirements during wartime. Operation Desert Storm and the Global War on Terrorism both relied on carriers participating in the CRAF program.

 

[Fliteidol]

Thanks FF. I guess the expansion flying never materialised this year so the basic deal is much the same as last time.