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Air Force awards CRAF contracts worth $2.3 billion

9/19/2006 - SCOTT AIR FORCE BASE, Ill. (AFPN) -- Headquarters Air Mobility Command has awarded its annual contracts that support the Civil Reserve Air Fleet program, worth $2.3 billion in fiscal 2007.

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 processes known as indefinite-delivery, indefinite-quantity International Airlift Services contracts.

Airlines may contract as teams to optimize their resources for commitment. The following airlines and teams were awarded contracts for fiscal 2007. The minimum guaranteed value of the contract is listed first, followed by the estimated contract value. Team members awarded at least 25 percent of the minimum guarantee are listed in parentheses below:

-- Alliance contractor team (Evergreen International Airlines Inc. and North American Airlines Inc.), $142,000,000, $1,080,000,000

-- Federal Express team (Air Transport International LLC and Atlas Worldwide Holdings, parent company of Atlas Air Inc. and Polar Air Cargo, Inc.), $185,000,000, $1,020,000,000

-- UPS team (Kalitta Air LLC), $25,000,000, 119,000,000

-- Miami Air team (Miami Air International), $11,000,000, $43,000,000

-- Continental Airlines Inc., $1,700, $10,000,000

-- Lynden Air Cargo LLC., $42,000,000, $45,000,000

In addition, Grand Air Holdings Inc., Hawaiian Airlines Inc., MN Airlines LLC, Northern Air Cargo Inc. and Spirit Airlines Inc. also were awarded contracts valued between $6,000 and $1,291,329.

Estimated contract values include both fixed and expansion business. Fixed-buy contracts are comprised of requirements 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 use.

Changes in DOD contract airlift requirements may cause the 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 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.

(Courtesy of Secretary of the Air Force Office of Public Affairs)

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