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Old 06-28-2006, 10:47 AM   #1  
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By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 06/28/06
Long-time rivals UPS and the U.S. Postal Service are set to become the transportation industry's odd couple with a deal that would put U.S. mail on brown-tailed jets.

The formerly bitter adversaries are about to announce a $100 million deal to move some mail on UPS jets, company officials said Wednesday.

The deal is striking because UPS has long accused the Postal Service of abusing its first-class mail monopoly to unfairly subsidize its small package business, which competes with service by UPS and other private shippers. The Postal Service has taken issue with UPS's political clout and the company's frequent opposition to postal rate increases.

The UPS/Postal Service contract will sign a three-year contract with an option for two more years that become effective July 1 and sends first-class, priority and express mail on UPS jets flying between 98 U.S. cities.
UPS expects to fly its airplanes more as a result of the deal, but it won't add new aircraft to its fleet.

The Postal Service has complained recently that U.S. passenger airlines haven't provided the on-time deliveries it requires, and the UPS contract shifts much of the mail formerly carried on airlines to UPS.
The revenue boost is relatively minor for UPS, which had revenue of about $42.6 billion last year. But the deal also positions UPS to contend for a much larger, $1.3 billion deal between the Postal Service and FedEx. The Memphis-based delivery firm signed a precedent setting deal in 2001 that allows it to carry a broad range of Postal Service products.

At the time the deal was signed, Postal Service officials said FedEx was the only cargo airlines that could meet its requirements.

UPS expects to be a serious competitor when the FedEx contract expires next year.
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Old 06-28-2006, 10:56 AM   #2  
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And then 3 years into the future FedEx will get the contract again...And the big circle shows itself once again.
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Old 06-28-2006, 11:04 AM   #3  
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Originally Posted by HeavyDriver
And then 3 years into the future FedEx will get the contract again...And the big circle shows itself once again.

Yeah, and 3 years after that, UPS or someone else will underbid FedEx and the spiral will continue. Their respective managers can look and learn by what's going on in the regional industry for a model to use!
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Old 06-28-2006, 11:24 AM   #4  
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Quote:
Originally Posted by cynical
Yeah, and 3 years after that, UPS or someone else will underbid FedEx and the spiral will continue. Their respective managers can look and learn by what's going on in the regional industry for a model to use!

But why stop there? LCMs (low-cost muleteams) could undercut everyone! Fodder is cheaper than oil, and the Arabs can't shut it off. Get your muleskinner rating now!
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Old 06-28-2006, 11:50 AM   #5  
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Quote:Browntail is flamebait and has been banned at other forums under the following names:

TheGuat, Rhoid, GuppyKiller, TheGuppyKiller, E170GuppyKiller, FreightNazi, ABXpert, OUT, 410Dude, IHaveAPension, TheMissingLink, LucyFurr, RJDC, UPSer and numerous others.
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Old 06-28-2006, 12:10 PM   #6  
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So, the press release he posted is genuine. What's your point?
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Old 06-28-2006, 04:40 PM   #7  
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Here's how to make this forum more enjoyable:

1.Click on Browntail's username. This will open his profile

2.Click on "Add browntail to your ignore list?" link

3.Click on the submit button
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Old 06-28-2006, 05:23 PM   #8  
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Quote:
Originally Posted by l8fr82hub
Here's how to make this forum more enjoyable:

1.Click on Browntail's username. This will open his profile

2.Click on "Add browntail to your ignore list?" link

3.Click on the submit button
Great idea, it does make these forums much more enjoyable, added Cynicals to my ignore list while I was at it.
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