FedEx Consortium Gets $1.58B Pentagon Deal

WASHINGTON (AP) — A consortium of airline and air cargo companies received a $1.58 billion contract from U.S. Transportation Command for international airlift services, the Pentagon said late Thursday.

The team members of Federal Express Charter Programs Team Arrangement include: Air Transport International LLC, Atlas Air Worldwide Holdings Inc., Continental Airlines Inc., Federal Express Corp., Omni Air International Inc. and Polar Air Cargo Worldwide Inc.

Work will be performed worldwide and is expected to be completed by September 2010.

Shares of Federal Express fell $1.74, or 2.2 percent, to close at $76.46, while shares of Continental fell 30 cents to close at $16.32. Shares of Atlas Air fell a penny to $31.76 in after-hours trading, after adding 81 cents, or 2.6 percent, to close at $31.77 in the regular session.