From Associated Press:

BILLINGS, Mont. — In the multibillion dollar world of overnight package deliveries, Mike Overstreet knows his Billings-based company, Corporate Air, is at the "tail end of the dog" as a small FedEx contractor serving rural areas of the Rockies and Midwest.

Yet with FedEx engaged in a fierce Washington, D.C., lobbying battle with the industry's other private sector titan — United Parcel Service — Overstreet worries his business and customers in 10 states could go down as collateral damage.

At issue is whether FedEx Express, the company's delivery division, should be reclassified as a trucking company, like UPS, or retain its federally granted status as an airline.

If FedEx loses its special status under a measure now before Congress, its employees could more easily unionize. That in turn could drive up costs for the Memphis, Tenn.-based company, forcing it to trim services in rural areas where costs are highest and profit margins thinnest, said shipping industry expert Satish Jindel.

Bill could cost FedEx service to rural areas - Business - U.S. business - msnbc.com