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CONSOLIDATED FREIGHTWAYS' (NYSE: CNF) EMERY WORLDWIDE UNIT RECEIVES $880-MILLION POSTAL CONTRACT

 PALO ALTO, Calif., April 15 /PRNewswire/ -- Emery Worldwide announced today that it has been awarded a 10-year, $880-million contract by the United States Postal Service to transport Express Mail and Priority Mail.
 The contract award, for air transportation services (ANET) for the Postal Service's "Eagle Air Network," was contained in a settlement of a lawsuit involving the Postal Service, Emery Worldwide Airlines Inc. of Palo Alto, and Postal Air Inc. and Express One International Inc., both of Dallas.
 The settlement has been reviewed and approved by U.S. Federal District Court Judge Royce C. Lamberth in Washington, D.C., following review by the U.S. Department of Justice.
 "We are pleased with the award of this contract and we look forward to continuing a strong business relationship with the Postal Service," said W. Roger Curry, president and chief executive officer of Emery Worldwide. "Emery is ready to provide excellent service to postal patrons with efficient air operations."
 The contract, which takes effect in January 1994, will provide air transportation for the Postal Service's expedited mail through a hub in Indianapolis that serves a network of 31 cities, at a cost of $88 million a year for 10 years, plus so-called "pass-through" costs of $26.9 million a year, for fuel, de-icing and landing fees, for example.
 The settlement also permits Evergreen Aviation Ground Logistics Enterprises Inc. of Portland, Ore., to operate ground-handling of mail at the Indianapolis hub under a separate contract (TNET) with the Postal Service for $10 million per year for eight years.
 The Postal Service projects the new contract agreements for the air and terminal operations at a total cost of approximately $126.9 million per year, including a $2-million annual depreciation for the Indianapolis hub. This compares to a total annual cost of $130 million under the present contract.
 In addition to providing the Postal Service with annual savings compared to the present contract, under the new contract, Emery will:
 -- provide two additional aircraft (19 planes and five spares versus 17 planes and four spares) operating with additional lift capacity of 143,000 pounds each day, for total daily capacity of 656,000 pounds versus 513,000 pounds under the old contract;
 -- provide improved adverse weather (Category II) landing capability;
 -- provide 10 aircraft that comply with Stage III noise regulations, compared to two in the old contract, to comply with federal aviation regulations; and
 -- provide smooth transition between contracts to allow expedited mail service to continue uninterrupted.
 Emery was awarded the current contract for Express Mail and Priority Mail air and ground operations in August 1989. The contract was due to expire in January 1993, but was extended earlier this year by the Postal Service to January 1994.
 Emery Worldwide Airlines operates aircraft as the certified airline affiliate of Emery Worldwide, a $1.1-billion global air freight company with 245 terminal and service locations throughout North America and 88 countries. Emery provides professional transportation services for the time-definite traffic and logistics needs of retailing, manufacturing and industrial customers. The Emery network accepts any-size commercial air cargo shipment.
 -0- 4/15/93
 /CONTACT: J.R. Allen of Emery Worldwide, 415-494-2900/
 (CNF)


CO: Emery Worldwide; U.S. Postal Service; Consolidated Freightways ST: California IN: TRN SU: CON

GT-TB -- SJ004 -- 6310 04/15/93 13:43 EDT
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Publication:PR Newswire
Date:Apr 15, 1993
Words:548
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