Impact on FDX?
 

USPS Plans to Slow First-Class Mail - the End of Overnight Delivery


Discuss...............

It could mean they will use us less, depend on us more, or have no impact what so ever. Stock price is up, thinking most of the experts or betting on one of the last two.

Four Ay Too Be. This is why our manning should stay lean. Less guys is always better than more.

First Class mail is different than Express mail. First Class was guaranteed to get there in 1-3 days. As far as I know, we don't carry First Class mail. We carry Express mail. Time definite stuff.

Read about it below (they've already changed their First Class delivery time to 2-3 days...as the article from Raider boy said they would...three days ago the website said 1-3 days for First Class stuff):

https://www.usps.com/send/service-chart.htm

Just because they stop providing the service doesn't change the market. If there continues to be increasing demand then it should flow to the private sector.

It sure is...if you're senior.

I'm not sure that's true? I think I'd like to see "proper manning" so that maybe we could move/drop R-days/trips once in a while. :eek::eek::eek:

There should still be a contract in place with USPS and FX so I doubt much will change.

Less work for ramp crews?

We hired 500-700 pilots for the postal service contract. I am not sure how this will affect the contract or our loads but I can not imagine it being good. Just not sure how big the effect might be.

Should be a minimal effect, except for the $1,142,557,000 per year in revenue, 40 wide body aircraft, 4 million pounds a day of volume, and 500-700 pilots. 22 months left on the contract.


MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 1, 2006--FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX - News), and the U.S. Postal Service (USPS) today announced a new agreement for domestic air transportation of mail through 2013.

The Postal Service and FedEx Express signed a seven-year contract in 2001 for airport-to-airport delivery of mail within the United States. The contract announced today will replace the final two years of that contract and a new seven-year agreement will commence in October of 2006.

The agreement is expected to generate about $8 billion in revenue over the life of the seven-year contract.

FedEx Express will continue to fly over 4 million pounds of U.S. mail every business day - the equivalent of 40 wide-body DC10 aircraft using existing aircraft and facilities.

"The new contract allows the Postal Service and FedEx to continue our successful business relationship," said Postmaster General John E. Potter. "This relationship benefits postal customers by allowing us to maintain our high service standards while keeping costs affordable."

"Reaching a new agreement a full two years ahead of schedule is proof positive of the excellent relationship that FedEx has developed with the U.S. Postal Service," said David J. Bronczek, president and chief executive officer of FedEx Express. "We are proud of the trust the Postal Service has placed in us and their confidence in our fast, reliable and efficient service."