Post Office Suspends Mail Contract W/ Us & Aa

[BoeingBoy]

The U.S. Postal Service said it suspended shipments on American Airlines and US Airways because the mail consistently arrived late at its destinations. A spokesman would not give the dollar value for the contracts. American Airlines executives said they met with Postal Service officials yesterday to present a "detailed recovery plan," and US Airways said it was scheduled to meet with the agency today.

Wash. Post "Business in Brief" Column

Jim

 

[cltiam]

At one point the Postal Service was U largest Customer. What happened.

 

[700UW]

Get ready for ROUND FOUR!

 

[justaumechanic]

The U.S. Postal Service said it suspended shipments on American Airlines and US Airways because the mail consistently arrived late at its destinations. A spokesman would not give the dollar value for the contracts. American Airlines executives said they met with Postal Service officials yesterday to present a "detailed recovery plan," and US Airways said it was scheduled to meet with the agency today.

Wash. Post "Business in Brief" Column

Jim

[post="247994"][/post]​

According to USA320 this is consistent with the recovery plan in progress.. The farming out of farmed out work will result in a positive impact on net revenue when divided by the loss of revenue vs employee cut backs.

This should allow the company to continue to expand while retracting in size.

This is his usual type of response.. Note that he never posts anything that says the company makes any errors.. He will justify this as a good thing.. US Airways hates mail. They would prefer to carry additional pilots in the cockpit.

 

[billyboy1967]

According to USA320 this is consistent with the recovery plan in progress.. The farming out of farmed out work will result in a positive impact on net revenue when divided by the loss of revenue vs employee cut backs.

This should allow the company to continue to expand while retracting in size.

This is his usual type of response.. Note that he never posts anything that says the company makes any errors.. He will justify this as a good thing.. US Airways hates mail. They would prefer to carry additional pilots in the cockpit.

[post="248022"][/post]​

when the govt pulls the mail from an airline the end is near.when i started in avation in 1959 the old timers told me that there would .only be 2 major lines left in the usa. us air will not be one of them .the board of directors of us air shoud be set adrift in middle of the alantic..

 

[BoeingBoy]

This article adds a few details....

Bloomberg News Report

Jim

 

[Hope777]

Well in our Station, the VENDOR we have is never around. Mail comes up late from the AMF and upon arrivals, they dont show for hours. Is this because U is not paying the bills on time? Maybe, Maybe not. One thing for sure, when most contracts were signed, the Vendors got a percentage of the $0.20 per pound carried. Now with FedEx getting most of the mail, the Carriers and Vendors are not making anywhere near what they were making. I would guess most Vendors are lossing money doing the work for U and this was before the costs of scanners. I just cant wait until the P.O. calls and say CO couldnt handle the 2000lbs of CLT mail, will you take it. The answer...........NO ! ! !

 

[Prince of PAWOBs]

I don't know about Mainline, but when you try to move 800 pounds of mail to CRW on an Express J41 that is weight restricted, chances are good none of it is going to go.

The amount of mail that the Postal Service tries to move on Express flights is ridiculous.

 

[airbiiguy]

agreed, 1000lbs on a saab aint gonna cut it when theres 40 bags and 30 people.

 

[Prince of PAWOBs]

Upon further reflection, I wonder what would happen if FedEx, UPS and DHL start to offer domestic mail service competitive in price with USPS. The point about moving mail would be moot, because there would be ZERO need for the postal service.

And, of course, the USPS will manage to exist because the government will throw money at it to keep it alive.

 

[Flying Titan]

Upon further reflection, I wonder what would happen if FedEx, UPS and DHL start to offer domestic mail service competitive in price with USPS. The point about moving mail would be moot, because there would be ZERO need for the postal service.

And, of course, the USPS will manage to exist because the government will throw money at it to keep it alive.

[post="248047"][/post]​

Somehow I don't see FedEx or any other private delivery company delivering birthday cards for .37 to some town in North Dakota or Vermont that most of us have never heard of...usually within 2-3 days from anywhere in the country. Does FedEx (or the others) do a great job with the high-end stuff? Yes, but if they ever had to deal with the nitty-gritty everyday stuff that so many of us mail, it would be an entirely different tune. It's easy to bash the USPS because there are problems, but overall they do a consistently solid job for a pretty low price. Plus, FYI, USPS is self-sustaining - no tax dollars - just fees from the users.

 

[Harry Callahan]

At one point the Postal Service was U largest Customer. What happened.

[post="248012"][/post]​

The mail was turned over from US employees to contractors.

 

[700UW]

FedEx is flying mail for the USPS during the day, when normally FedEx's planes would not be flying.

 

[Hope777]

It is my understanding that FedEx is only taking Piority Mail not Bulk Mail.

 

[smfav8r]

The USPS is fickle...who get's the mail for certain destinations changes often....all depends on schedule and how much said carrier can take. (major problem with RJ's and turbo-props on morning departures when most of the mail moves)

FEDEX stole the mail contract from Ryan a few years back....the INDY sort which used to be mostly Ryan 727's is now FEDEX...and I think that sort is still at night, not during the day.

Rumor has it that the USPS is not happy with FEDEX! FEDEX has continued to leave mail on the ramp in INDY in favor for those expensive envelopes!

Point is, it's a continuous cycle...maybe the USPS will look at UPS and drop FEDEX in the future, only time will tell.