UPS sees FDX/USPS deal as Antitrust

[Fly Astar Jets]

Justice Dept. reviews USPS-FedEx deal


Article Abstract:
FedEx Express and the US Postal Service have entered into a $6.3-billion alliance which is being reviewed by the Justice Dept. The deal is based on air transportation and retail business agreements. Under the alliance, the USPS will buy space on FedEx airplanes to transport Express Mail, First- Class mail and Priority Mail and FedEx will locate overnight service collection boxes at post offices nationwide. The alliance is expected to save USPS $1 billion annually and hold down future rate increases. However, the main competitor to the partnership, United Parcel Service, views the plans to have public policy and antitrust implications.

author: Campanelli, Melissa
Publisher: Haymarket Media, Inc.
Publication Name: DM News
Subject: Construction and materials industries
ISSN: 0194-3588
Year: 2001



This review by the Justice dept went nowhere because of the USPS immunity, as a branch of the government, against antitrust issues. And as we all know it has not prevented "future rate increases" by the USPS. I think the cost of postage has gone up twice since '01

 

[shooter]

Justice Dept. reviews USPS-FedEx deal



This review by the Justice dept went nowhere because of the USPS immunity, as a branch of the government, against antitrust issues. And as we all know it has not prevented "future rate increases" by the USPS. I think the cost of postage has gone up twice since '01

5 Rate increases since 2001.

http://www.akdart.com/postrate.html

And I know I have said it before, but this deal much more than the FDX/USPS deal. The USPS uses many different carriers, puts it up for bid each time the contract draws close and USPS provides its own sorts. My bet is there will be an investigation once the deal is signed, but I don't hold hope that Washington is without corruption to stop what is clearly anti competitive and will hurt shipping prices for the consumer.

I have seen the news reports about the DHL deal being addressed to McCain and Obama. I understand the people asking are concerned about the ILN jobs. But when talking to these two particlular politicians, do you guys/gals think it would have been more effective to talk about open skies and foreign interests in America? Here is a clear case of a foreign company buying up a couple American companies and drive them into the ground. They have no interest in America or it's workers.

 

[belchfire]

Hahahaha...but it's okay for them to get in bed with DHL!

 

[hvydriver]

Hahahaha...but it's okay for them to get in bed with DHL!

Actually BF, DHL Airways was a US company prior to DPWN buying DHL Express. (and that was the whole thing, ground, air, etc.) Just as Airborne Express was a US company with it's own airline. Make no mistake. DHL is just a name only at this point. All of this is driven by DPWN.

 

[belchfire]

Yeah, it's the new world order for business...consolidate, screw the employees and conquer

 

[FDXer]

This article is from 2001. A little old news drummed up 7 years later....

 

[AV80R]

Hahahaha...but it's okay for them to get in bed with DHL!

Yeah, you forgot to mention this is a very old news article - 7 years or so. At the time UPS felt the competition was unfair and 'complained' to the government. When told their complaint was not valid they - you guessed it - learned from their failed attempt. Can you really blame them?



Ps. Glad you are ok!

 

[penguin22]

This article is from 2001. A little old news drummed up 7 years later....

Yes, the article is from 2001, and thats the point.

In 2001, when FDX enters into such an agreement, UPS complains about antitrust implications. In 2008, when UPS enters into such an agreement, they claim there's no antitrust implications

 

[penguin22]

just pointing out the hypocrisy

 

[AV80R]

just pointing out the hypocrisy

...new approach because of what the Department of Justice and the government lawyers told them some 7 years prior. I see no hypocrisy, I see learning and evolving from everyday events...

Full disclosure, I'm Brown myself but not a big supporter of the deal (I think it'll hurt us further down the road). Needlessly to say, I also feel horrible for the Astar/Abx employees...

 

[penguin22]

...new approach because of what the Department of Justice and the government lawyers told them some 7 years prior. I see no hypocrisy, I see learning and evolving from everyday events...

I can understand your point also

 

[belchfire]

Yeah, you forgot to mention this is a very old news article - 7 years or so. At the time UPS felt the competition was unfair and 'complained' to the government. When told their complaint was not valid they - you guessed it - learned from their failed attempt. Can you really blame them?



Ps. Glad you are ok!

Thanks-been a little rough around here lately...

I don't really blame them-it's a way to elimnate competition-and get paid to do it! I'm also feeling a little grim about all the Airborne, ABX and other guys that are getting hosed.

Seems though that outfits that make agreements with DHL/DPWN end up getting the short end of the stick at best!

 

[eatme]

...new approach because of what the Department of Justice and the government lawyers told them some 7 years prior. I see no hypocrisy, I see learning and evolving from everyday events...

Full disclosure, I'm Brown myself but not a big supporter of the deal (I think it'll hurt us further down the road). Needlessly to say, I also feel horrible for the Astar/Abx employees...

How do you think it will hurt Brown?

 

[shooter]

How do you think it will hurt Brown?

I think the only way it will hurt brown is if they are masterminding a DHL takes international UPS takes domestic arrangement. If you guys fly it to a gateway and they fly it the rest of the way all over. Who knows what these guys are cooking up, but past experience says it is not good for the employees.

Have you guys heard any rumors about the negotiations over at Worldport? Rumor at the Hoot says brown has walked away twice already because of DHL's unreasonable demands. Brown is in the driver seat in this whole deal, which is good because DHL screws up EVERYTHING via DPWN. I had it described to me once that if you took a coin and flipped it to make a decision, you would come out with more correct decisions than DHL has made since the Airborne purchase. Like they had a double-sided coin with tails, and they keep calling heads.

If there is no other international deal in the works you guys come out golden. You would have eliminated the 20+ year #3 player (Airborne Express) through the incompetence of DPWN buying DHL and now paying you to take it all away. It bites for all of us on the ABX/Astar side to no fault of your doing. It was all DHL/DPWN. Don't let your guard down though. These guys think less of the workers than the toilet seat in their corporate restrooms.

 

[AV80R]

How do you think it will hurt Brown?

Well, I have a few friends working for the German side of the DHL and based on their stories I think DHL is much more cunning and vicious than UPS realizes.

Also, I fear that one day DHL, UPS and maybe an Asian airline (Air Hong Kong for example) will carve out their territories and while we'll be flying DHL stuff here, the DHL will be flying our stuff in Europe and then the two of us would use the Asian airline to fly our stuff in that market.

I know, some people say I'm a (nightmare) dreamer but I'm not the only one...