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Fri, Sep 05, 2003

End of an Era: Northwest Won't Carry US Mail Any More

In 1926, Northwest Airlines got its start by carrying the mail in its two airplanes, a Thomas Morse Scout and a Curtiss Oriole. They carried the mail, and a double-handful of passengers between Minneapolis and Chicago, sometimes making several unannounced stops enroute, for then-normal, and numerous, repairs.

No more, according to Northwest's hometown Pioneer Press.

Northwest has told the US Postal Service that it's no longer to carry domestic mail; it's no longer profitable. [NWA will continue to carry international mail, for the forseeable future --ed.]

The USPS effectively cut its rates to mail carriers such as Northwest this Summer. It now uses a incentive pricing strategy, rather than a flat rate.

The airline, after having a second look at the picture -- lowered rates, lowered volume, steady expenses -- decided that there must be something better to haul. By the time Northwest gets rid of all the domestic mail business, it won't have to pay between 150 and 200 employees, either.

FedEx is the likeliest candidate to pick up Northwest's old Post Office business, around three million pounds annually.

FMI: www.nwa.com

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