Mon, Oct 02, 2006
Passenger Airlines Get Deal To Haul The Mail
The US Postal Service
awarded carry contracts to seven domestic passenger airlines.
Starting Saturday, September 30th, neither rain nor snow nor
gloom of night will deter American Airlines, American Trans Air,
Continental Airlines, JetBlue Airways, Midwest Airlines, Sun
Country Airlines and US Airways from delivering your mail.
Well, that's what they hope anyway...
In a release, USPS Network Operations Vice President Tony
Pajunas said, "By achieving consistent, on-time delivery for our
customers, the performance standards implemented three years ago
have helped us improve customer service overall. The new agreements
ensure that -- together with the airlines -- we will continue to
provide the highest levels of service."
The contracts stipulate on-time delivery requirements
established in the 2003 internal overhaul Pajunas mentioned in his
Also included in the deal is a requirement to allow the USPS to
track customer's mail during transit -- much like commercial
carrier rivals UPS and FedEx. Airlines will scan for three data
points: when they receive it or it's loaded on a plane, during a
transfer to a connecting flight and when the USPS accepts it at the
The USPS estimates the seven carriers will share 450 million
pounds of Express, First-Class and Priority mail between them in
2007. That translates to some $225 million. Carriers are to be paid
based on the volume they carry.
Although the USPS is an agency of the US government, it doesn't
use any taxpayer dollars for to pay for operations -- all revenue
is derived from postage and product sales.
The USPS estimates its annual revenue at $70 billion.
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