About 70% of USPS service is junk mail, they have been left holding the low margin bag. The decline of the USPS is nothing but good news for FEDEX/UPS, but most of the high margin business has already been captured.[/QUOTE]
That "Junk Mail" makes up a bunch of subsidized air volume in the dedicated postal network (which has most recently (since 2002) been operated by FedEx). Both FedEx and UPS will get their fair share of the "competitive product", but the reduction or elimination of the dedicated postal network will be good for profits, but bad for fleet size and staffing levels at Fed Ex.