UPS gets US Mail

[USNFDX]

United Parcel Service, Postal Service ink pact: WSJ



By Steve Goldstein
Last Update: 4:07 AM ET Jun 28, 2006





LONDON (MarketWatch) -- United Parcel Service Inc. (UPS : united parcel service inc


and the U.S. Postal Service reached agreement on a deal that will put mail on planes of the package-delivery company and could improve the post office's reliability, The Wall Street Journal reported Wednesday, citing unnamed people familiar with the matter said. Terms of the arrangement call for UPS to begin flying mail for the Postal Service on Saturday, in what could generate revenue of more than $100 million a year for UPS, the report said. FedEx Corp (FDX : fedex corp com

<IMG class=pixelTracking height=1 width=1 border=0>FDX114.01, -1.01, -0.9%) has a $1.3 billion annual contract with the Postal Service in a wide-ranging partnership launched in 2001, the report said.

 

[FlyBoeingJets]

When is FedEx's postal contract up for renewal??

I predict a rise in UPS mail carrying every year, just like at FedEx.

 

[Purpled]

Agreed! There's plenty of mail to go around. When it is up for renewal FDX might lose some % of the contract, but not a drop in volume or revenue. Yeah Gov't contract!!

 

[Flip Conroy]

Agreed! There's plenty of mail to go around. When it is up for renewal FDX might lose some % of the contract, but not a drop in volume or revenue. Yeah Gov't contract!!

Maybe when the contract is up for renewal, someone will make an under the table deal with the USPS and simply take the contract from FedEx, the way they did it when they stole it to begin with.

 

[Purpled]

Maybe when the contract is up for renewal, someone will make an under the table deal with the USPS and simply take the contract from FedEx, the way they did it when they stole it to begin with.

You got a problem with dat?

 

[1800 RVR]

Maybe when the contract is up for renewal, someone will make an under the table deal with the USPS and simply take the contract from FedEx, the way they did it when they stole it to begin with.

I don't understand why pilots get mad at other pilots when it comes to things like this? We pilots can't control what the management teams at Brown or Purple do. "Feces" happens. I don't know what will happen next year. Hopefully there will be enough to go around. But, Flip, what do you think the supplemental cargo carriers do to get their business? Don't you think that they undercut and make sidedeals to get work? There are companies everywhere that will do what they need to get business.

 

[SmackYourPappy]

How long do think it will take MGMT @ Hack's Cross to get this little tidbit into our negotiations??? aarrrrggggggggghhhhhhhhhhhhhhh

 

[Flip Conroy]

I don't understand why pilots get mad at other pilots when it comes to things like this? We pilots can't control what the management teams at Brown or Purple do. "Feces" happens. I don't know what will happen next year. Hopefully there will be enough to go around. But, Flip, what do you think the supplemental cargo carriers do to get their business? Don't you think that they undercut and make sidedeals to get work? There are companies everywhere that will do what they need to get business.

I never once said a thing about being "mad at other pilots". I was simply stating that FedEx made an under the table deal and stole the contract from the companies that had it at the time...bypassing the required bidding process...and maybe something like that might happen again.

How you got I was "mad at other pilots" for that statement is beyond me. A bit overly sensitive, are you? Or perhaps just guilty of similar behavior?

 

[Purpled]

How long do think it will take MGMT @ Hack's Cross to get this little tidbit into our negotiations??? aarrrrggggggggghhhhhhhhhhhhhhh

Don't fret. This won't hurt our position, it will help it...indirectly. Our negotiators know that this is not a reduction in our contract, just an additional load of mail moving from an unreliable shipping source to a more reliable one. The company might try to 'use' this announcement against us, but it will be unfruitful.

This will help UPS pilots at the table, and indirectly help us.

Half full!

 

[fox3]

I never once said a thing about being "mad at other pilots". I was simply stating that FedEx made an under the table deal and stole the contract from the companies that had it at the time...bypassing the required bidding process...and maybe something like that might happen again.

How you got I was "mad at other pilots" for that statement is beyond me. A bit overly sensitive, are you? Or perhaps just guilty of similar behavior?

Whiner!

 

[USNFDX]

Hmmmm..... United looses mail, UPS get some of it....I don't think the sky is falling at FedEx.....Yet!

United losing mail delivery contract with Postal Service


Bloomberg News
Published June 23, 2006

United Airlines, the passenger carrier that flies the most mail, said Thursday that it will lose its domestic contract with the U.S. Postal Service on June 30 because of poor on-time performance.

Separately, United said it has received an inquiry related to alleged price fixing by British Airway and other carriers but said it is not a target of the investigation.

United will continue to carry international mail, the majority of its mail business. The Elk Grove Township-based carrier, which has transported U.S. mail for 75 years, declined to say how much revenue it received from its current three-year Postal Service contract.

U.S. airlines were paid $728 million for flying domestic and international mail in 2005, with United leading passenger carriers at $150 million, according to government statistics.

"This development highlights the fact that execution is critical in both the passenger and cargo sides of the operation," Scott Dolan, United's senior vice president for airport operations and cargo, said in a message to employees.

The Postal Service told United the carrier wasn't eligible to bid on a five-year renewal because it hadn't met on-time standards from October to March, the airline said.

United declined an offer to extend the contract through September after the carrier reduced delays. Its next chance to bid for the Postal Service contract will be in 2011.

It's too early to tell whether United employees may be affected by the change, Dolan said.

United said it is cooperating with British and U.S. authorities carrying out an investigation of alleged price fixing among carriers.

"We've been informed by the Department of Justice that United is not a target of their investigation, and we are cooperating with them in full," said spokeswoman Jean Medina.

 

[1800 RVR]

I never once said a thing about being "mad at other pilots". I was simply stating that FedEx made an under the table deal and stole the contract from the companies that had it at the time...bypassing the required bidding process...and maybe something like that might happen again.

How you got I was "mad at other pilots" for that statement is beyond me. A bit overly sensitive, are you? Or perhaps just guilty of similar behavior?

Nope, not sensitive here. If you go back and reread your post, it is very easy to construe your back-handed comment about FedEx getting the mail contract as anger. I don't know who you work for, nor do I care, but your post sounds like it came from someone who works at a company that maybe lost a mail contract.

As for the part of your quote that I made bold, nope, not guilty either. I go to work, do my job, go home. UPS doesn't ask me to help in making their business decisions. Way above my paygrade. So, no guilt here.

 

[Mr Zog]

This could be a blessing for both the pilot groups at UPS and FedEx. I am guessing that when the renewal for the contract in 2007, the biggest bargaining chip will be which company comes in with the labor situation all secure. USPS has always been leary of labor disputes. There is a $1.5 BILLION carrot out there guys. MY UNION SPEAKS FOR ME.

 

[sandman2122]

Also include the mail SWA turned down - that's probably part of it.