USPS Contracts Help Bottom Lines

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Sep29

USPS Contracts Help Bottom Lines

Rob Willers

September 29, 2006

Know More:

It was how the US Airlines came to be born, it wasn't about carrying passengers but about the mail. The United States Postal Service (USPS) has awarded new contracts for delivering the mail for the next year this week. Major carriers are trying to diversify their revenue sources and adding more cargo is one way.

American Airlines, Dallas, TX;
American Trans Air, Indianapolis, IN;
Continental Airlines, Houston, TX;
JetBlue Airways, Queens, NY;
Midwest Airlines, Milwaukee, WI;
Sun Country Airlines, Minneapolis, MN;
US Airways, Washington, DC.

"By achieving consistent, on-time delivery for our customers, the performance standards implemented three years ago have helped us improve customer service overall," said USPS Network Operations Vice President Tony Pajunas.

While the value of the five-year contracts is dependent on each carrier's capacity, service performance and mail volume transported, total value for fiscal year 2007 is estimated at approximately $225 million.

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